Nagpur: Opening on a higher side, prices of raw cotton continued to soar probably first time in last one decade with region’s agriculture produce marketing committee (APMC) recording over Rs8,500 per quintal.
Amid the windfall, rumours of raw cotton fetching Rs9,500/quintal at Achalpur open market went viral in several social media groups on Saturday. A purported bill issued by a ginner too was attached to the social media post.
Achalpur APMC secretary Pawan Kumar said a complaint against the rumour mongering has been lodged with Paratwada police. “No such auction valued at Rs9,500 took place in Achalpur. Auctions started a couple of days back and the highest rate offered here is Rs8,500/quintal. The arrivals are good, with around 10 to 15 quintals a day,” said Kumar.
A former APMC office-bearer at Achalpur claimed the news about higher rate is being deliberately spread to attract more cotton growers. “The current administration has recently taken over and it is under pressure to guarantee higher rates. About 10 quintals were sold at the high rates, which too may not be paid to the farmer citing quality issues later,” he said.
Yet the mood among farmers and other APMC members is upbeat. The raw common rates normally come down after the opening day, but this year high demand has ensured growers get nearly 30 to 40% more than the minimum support price of Rs6,025 per quintal.
Tukaram Chambhare, secretary of Hinganghat APMC yard which is a major cotton hub of Central India, said traditionally prices fall after the opening day sale, but due to higher demand of bales, the rates have gone up this time.
Around 40% less production is another factor for the spike in prices and it is expected that the procurement season would close in three months.
GH Wairale, former general manager, Maharashtra Cotton Growers Federation, said domestic consumption has increased as compared to availability of the produce. “Ideally, five pluckings are achieved in a cotton season from September to August. But this time, all cotton would be collected in two or three pluckings. The delayed withdrawal of rains has affected the produce,” he said.
Wairale explained there is not enough stock to export. “The difference between international and domestic prices is not much. Hence, the export estimation is also pegged 40% low. Unless good returns are assured, exports are not happening,” he said.
On November 2, the crop committee of Cotton Association of India (CAI) would be meeting to assess the shortfall in production.
Source:thetimesofindia.com