Diwali has arrived a little earlier for cotton farmers as prices have touched Rs 10,000 per quintal against Rs 5,000 last year. The farmers are jubilant over the rising prices as they are likely to fetch decent profits in the next two months.
Although unseasonal rains are worrying farmers in some places, a majority are relieved as they have sold their first pick of the yield during the current season.
Sources said prevailing prices are the highest in the recent past and are likely to go up in the next few weeks depending on quality of the stock. Market analysts said reports about low yields from the cotton producing states of Maharashtra, Karnataka and Madhya Pradesh due to heavy rains and cyclones are reported to have created demand for cotton from Andhra Pradesh and Telangana.
Traders initially offered around Rs 6,500 per quintal at the beginning of the season last month and slowly increased prices. With more players joining the trade, prices jumped to Rs 10,000 per quintal in select markets, including Adoni in Kurnool district.
Sources said the textile industry returning to full production levels after nearly two years is also a major reason for increased demand for cotton across the globe.
Interestingly, the Cotton Corporation of India (CCI) has not launched procurement operations by setting up purchase centres anywhere in the state due to heavy demand for stocks from traders.
