Cotton Prices Rise Across India: Rates Cross Minimum Support Price (MSP)

Key Highlights

• Cotton prices have surpassed MSP in most markets.
• The highest price was recorded at Rs 13,206 per quintal.
• Reduced cultivation due to unfavorable weather and pests.
• Cotton sown in 11 lakh hectares less than last year.
• Prices are expected to rise further, benefiting farmers.

Cotton prices are on the rise, with market rates now surpassing the Minimum Support Price (MSP). Farmers and traders all across India are witnessing a significant increase in cotton prices due to reduced cultivation and market shortages. Let's take a closer look at the current prices and future trends.

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Cotton Prices Reach New Heights

In several markets (mandis), cotton prices have gone above the MSP. The highest cotton price in Karnataka's Chitradurga Mandi has reached Rs 12,222 per quintal, while other mandis are also seeing price hikes. Market experts predict that cotton prices may continue to rise in the coming weeks, providing farmers with a better return on their crops.

However, cotton cultivation has decreased this year compared to the last year. With less cotton being produced, the supply is tighter, contributing to higher prices.

How Much Have Cotton Prices Increased?

Cotton prices have consistently risen over the past few weeks, with rates climbing by about 3% above the MSP. Here’s a breakdown of current prices in major markets (mandis):

Gujarat:

• Rajkot Mandi: Rs 8,560 per quintal
• Amreli Savarkundla Mandi: Rs 8,420 per quintal
• Surat Nijar Mandi: Rs 7,655 per quintal

Karnataka:

• Bijapur Mandi: Rs 8,529 per quintal
• Chitradurga Mandi: Rs 13,206 per quintal

Telangana:

• Karimnagar Jammikunta Mandi: Rs 7,400 per quintal
• Warangal Kesamudram Mandi: Rs 7,667 per quintal

Reasons Behind the Cotton Price Rise

Several factors have contributed to the current rise in cotton prices:

1. Reduced Sowing: Cotton was planted in less area this year about 11 lakh hectares less than last year. This drop is due to unfavorable weather conditions like heavy rains in key cotton-producing states like Maharashtra, Andhra Pradesh, and Telangana.
2. Crop Damage: In states like Punjab, cotton crops have been damaged by pests, such as the pink bollworm, leading to reduced yields.
3. Market Shortage: With less cotton available, demand is outstripping the supply, causing its prices to rise.

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Current Cotton Prices in Major Markets

According to commodity market data, the average price of cotton across the country is Rs 7,246.11 per quintal, with the highest price recorded at Rs 13,206 per quintal. Below are the current prices from key markets:

Gujarat:

• Rajkot Jetpur Mandi: Rs 8,255 per quintal
• Amreli Mandi: Rs 8,415 per quintal

Telangana:

• Warangal Mandi: Rs 7,700 per quintal
• Khammam Mandi: Rs 7,900 per quintal

Karnataka:

• Raichur Mandi: Rs 7,700 per quintal

Cotton MSP for 2024-25

The government has set the MSP for the 2024-25 cotton season as follows:

• Medium Staple Cotton: Rs 7,121 per quintal
• Long Staple Cotton: Rs 7,521 per quintal, an increase of Rs 501 from last season.

Future Market Trends

Market experts predict that the upward trend in cotton prices will continue, largely due to reduced cultivation and a shortage in supply. Prices are expected to stay above the MSP, and further increases are likely to happen in the coming days. Farmers who have grown cotton this season can expect higher returns on their crop.

Advice to Farmers

Before making any decisions about selling their cotton, farmers should check the local market rates to ensure they get the best price for their produce. It's essential to stay informed and take advantage of the current market conditions.

Also Read: Paddy Prices Rises to Rs 3692/Quintal: Market Trends & Insights

CMV360 Says

The rise in cotton prices brings hope to farmers, especially given the reduced cultivation this season. With prices exceeding the MSP and a shortage in the market, the coming weeks could see further increases, offering better profitability to cotton growers across India.