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Cotton prices are on the rise, reaching Rs 7,091.67 per quintal. Farmers are urged to strategize sales amidst global demand and local dynamics.
Cotton prices have embarked on an upward trend, breaking the two-month trend of agriculture stability. As we enter March, the market is witnessing prices above Rs 7,000, a significant rise from the previous months. The current average market rate stands at Rs 7091.67 per quintal, with the highest recorded price reaching Rs 8300 per quintal. This marks a notable increase from the Rs 6,000 to Rs 7,000 range that was observed in December 2023. Experts are now projecting a continued upward trend, encouraging them to release advance price estimates for the upcoming three months.
Market analysts have considered various factors in formulating their advance price estimates for Indian cotton in the coming months. The projected range for March, April, and May 2024 is between Rs 7500-8000-8300 per quintal. Key influencers include the elevated rates of sarki (cotton seed) and cotton cake (DHEP), growing international demands, and increased local demand for fabric and spindles. However, the experts caution that unforeseen events such as elections or market fluctuations could pose risks to these estimates.
Several factors play a pivotal role in determining the cotton prices. Among the most significant are:
Projections for the current year estimate approximately 260 lakh bales of cotton production, with a carry-over stock of around 60 lakh bales. This signifies a decrease in availability compared to previous years. Additionally, a 10 to 12 percent increase in the cost of cotton imports from other countries may pose challenges for cotton producers.
Given the current scenario, market experts recommend a phased approach to selling cotton. Farmers are advised to sell about 40 percent of their cotton in March, followed by 30 percent in April and the remaining 30 percent in May. This strategic selling can yield better prices for farmers. However, considering the dynamic nature of cotton prices influenced by various factors, farmers are urged to exercise caution and stay informed about the local market conditions before making selling decisions.
As of now, the average market price of cotton stands at Rs 7091.67 per quintal. The lowest recorded price is Rs 5680 per quintal, while the highest market price reached Rs 8300 per quintal. Farmers are encouraged to stay informed and make informed decisions based on the prevailing market conditions.
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The recent upward trend in cotton prices signals positive prospects for farmers. With advance estimates projecting continued increases, strategic selling is advised. Factors such as elevated seed and cake rates, international demand, and limited local stocks impact prices. Farmers should stay informed and cautiously navigate the dynamic cotton market for optimal returns.