Cotton selling above MSP in Indian Punjab

It is heartening for Indian Punjab cotton farmers to be upbeat that private sector players are paying them in advance the sown crop at a higher than the government-indicated minimum support price.

The government has fixed Rs6620 per quintal while private traders are purchasing the crop at Rs7400 to 7600 per quintal.

In southern Punjab, the major cotton-producing districts are Malwa, Bathinda, Fazilka, Mansa and Muktsar are the major cotton producing districts. The problem however is that the total cotton sowing area in these districts has declined sharply from 2.28 lakh hectares Last year to 1.75 lakh hectares.

A leading spinner of Indian Punjab confirmed that cotton price currently is available from Rs7400 to Rs7600 per quintal. He pointed out that cotton was also sold early in the season last year at Rs8000 per quintal, above the MSP.

However, he said that the rates of cotton fell below MSP after a few days.



However, commission agents in Bhatinda said the rates are higher because the cultivation area this year has drastically reduced which means that cotton production this year would also be lower. They said the crop would sell above MSP.

They said the pink bollworm has attacked the standing crop but the injury level for the time being is not alarming. However, if the pink bollworm damages the crop the price can touch Rs 10,000 per quintal.