In the former Karimnagar district’s various agricultural marketplaces, the price of cotton harvest has been falling. During the previous two weeks, the price fell by Rs 2,700. Despite reaching Rs 9,000 per quintal in the second week of November, the price of cotton began to decline in the third week for a number of reasons.
The traders’ syndicate is cited as the cause of the price reduction in the local market in addition to the decline in cotton bale prices in the international market.
In the Karimnagar and Peddapalli districts, respectively, cotton was grown on 61,032 acres and 70,000 acres. Peddapalli anticipates a yield of about 5.80 lakh quintals, compared to the 54.88 lakh quintals anticipated in Karimnagar. The MSP for 24.5 mm to 25.5 mm cotton and 29.5 mm to 30.5 mm cotton was set by the Central Government at Rs. 6,080 and Rs. 6,380, respectively, in accordance with the crop sizes.
Despite other smaller markets, Jammikunta and Peddapalli are the two biggest markets for trading cotton. Even if business was robust in the early going, trouble started when the price dropped the Rs 9000 level. A quintal of cotton was bought for Rs 9,114 on November 14 and it lasted for a few weeks. From November 22, the price began to drop. During the previous season, dealers paid more than Rs 11,000 per quintal to buy the harvest.
Farmers stopped bringing their product to the marketplaces because they expected the price to rise. Traders apparently decreased the price at the same time to watch for a future gain. A market source reported that as a result, the price, which had soared to Rs 9,114 on November 14, dropped to Rs 8,300 on Tuesday.
However, traders stated that they bought the crop based on the price on the international market. Last week, the price of a cotton bale on the global market when the cotton market was Rs 71,000. It is now declined to only Rs 67,000.
