The arrival of the cash crop in Punjab this season has lowered by more than four times compared to 2021, when more than 9 lakh quintals had entered the market by November 30. The buying of raw cotton started in October.
The important kharif crop arrived more slowly than in the previous five years, according to an analysis of statistics from the Punjab Mandi Board, even if the average rate is the highest since 2018.
The crop known as “white gold” is regarded as the semi-arid region of Punjab’s economic lifeline. According to Indian Cotton Association Limited (ICAL), an organisation that deals with the export, spinning, and ginning of cotton, Punjab is estimated to have produced 4 lakh bales, or 20 lakh quintals, as opposed to 29 lakh quintals produced in the 2021–22 kharif season.
Industry observers claim that farmers may be withholding the crop in an effort to receive higher prices for their lower cotton yield. However, the arrival trend has the experts concerned because this year’s kharif crop had a dismal yield for the second year in a row.
The government should consult experts to develop a plan to ensure farmers do not abandon cotton in the upcoming kharif season, according to Punjab Agriculture University’s (PAU) principal agricultural economist GS Romana on Wednesday.
“It will be a relief if Punjab’s cotton production touches 4 lakh bales this time. Last year, pest infestation hit the crop whereas this time besides the pest attacks, cotton was badly affected by the dried season, prolonged non-availability of canal water and waterlogging due to incessant rain in monsoon. Unable to bear financial losses, more farmers are likely to switch over to paddy cultivation in the next kharif season as cotton crop became too risky,” he added.
According to Mandi Board data, 2.22 lakh quintals of raw cotton arrived in all seven Malwa belt districts by November 30. According to Rajnish Goel, the state’s cotton coordinator, the average price per quintal of cotton was $8,500, the highest since 2018.
“All seven cotton-growing districts are reporting the arrival of mere 4,000-8000 quintals every day. This kind of low arrival is exceptional even when farmers are being paid remunerative rates for the crop,” said Goel.
When pink bollworm badly damaged the crop in 2021, by November 30, 9.26 lakh quintals had already reached the market. In the most recent kharif season, the average rate was ₹7,700.
When farmers received a payment of ₹5,200 per quintal in 2020, Punjab had a record harvest of nearly 49 lakh quintals. Cotton farmers made good money because of their great output. By the end of November 2020, various buying centers reported the prompt arrival of 19.34 lakh quintals.
Similar to how 12.39 lakh quintals arrived in 2018 and 13.27 lakh quintals arrived in 2019, the state saw the arrival of both.
ICAL secretary Jatinder Singh says this time the staple length is less than the prescribed of 27 mm and growers may end up getting lesser rates.
“Dismal arrival has hit the entire industry ecosystem as cotton ginning factories are incapable to run units. Initially, we estimated Punjab may produce more than 35 lakh quintals which have come down to 20 lakh quintal or even less. The industry is in wait-and-watch position if farmers start taking the raw cotton in the market as harvesting of basmati and parmal varieties are over,” said Singh.
