Three days after an official projection of a drastic loss in production of raw cotton this year, the “white gold” crop touched a record-breaking rate of Rs. 10,500 per quintal on the first day of November.
According to the official data of the Punjab Mandi Board, the rate of the cash crop was reported in five figures in Muktsar on Monday.
It was not confirmed how much quantity was purchased for the historic rate of Rs. 10,500 per quintal, which was 77% higher than the minimum support price of Rs. 5,925 fixed by the central government for the 2021-22 kharif season.
Industry sources said it is for the first time that the cotton rates have crossed Rs. 10,000 mark.
Prices may witness a further surge due to the ongoing high demand for Indian yarn in the global market.
About 2,080 quintal cotton was purchased by private buyers in Muktsar on November 1 and to date the district has reported sale of 1.31 lakh quintals.
By November 1, semi-arid cotton-growing districts reported sales of 6.35 lakh quintals.
In 2020-21 season, Punjab had produced about 50 lakh quintals of cotton.
Before the commencement of cotton harvesting, industry and Cotton Corporation of India, a center-government agency, had projected rates higher than the MSP on the basis of market trends.
However, an infestation of the deadly pink bollworm in Bathinda and Mansa, major cotton producers, dashed the hopes of farmers.
Today, 11,258 quintal cotton was sold by farmers in different mandis of south Malwa districts.
Districts of Bathinda and Mansa, stated by the Punjab government as the worst-hit by pink bollworm attack, reported rates of up to Rs. 9,600 and Rs. 9,330 per quintal.
Till November 1, Bathinda has recorded 1.30 lakh quintals and private buyers have bought 1.43 lakh quintals.
This season, Fazilka, which remained unaffected by the pest attack, is leading with 2.12 lakh quintals and on Monday cotton rate remained Rs. 8,800-9,095 per quintals.
