After consecutive rises for two seasons, a downward turn for cotton MSP
Despite the potential to cultivate around 8 lakh hectares of cotton in Punjab, cotton belt districts, apart from Fazilka, focused on paddy cultivation.
4 min read
Cotton cultivation area witnessed a significant decline this year, with only 1.70 lakh hectares dedicated to it compared to 2.49 lakh hectares the previous year. (Representational Photo) In the past two seasons, the raw commodity ‘Kapas’, including cotton seeds, witnessed an upswing in Minimum Support Price (MSP). However, in the ongoing season, the opening rates have fallen below the MSP in various state mandis, while some markets are still maintaining rates close to the MSP.
The central government set the MSP at Rs 6,620 per quintal (medium staple) and Rs 7,020 per quintal (long staple). Despite this, most private buyers engaged in purchasing, with the Cotton Corporation of India (CCI) intervening only when rates plummet well beneath the MSP. In the last two seasons, cotton rate remained between Rs 7,000 and Rs 13,000 per quintal during the season from September to March.
Gagandeep Singh, a farmer from Bhurj Bhalaike, Jhunir Block, Tehsil Sardulgarh, Mansa District, voiced his disappointment, stating that the current rate in Mansa mandi stands at Rs 6,500 per quintal. He had anticipated a rate exceeding Rs 7,000 per quintal, but the actual rate fell short. Additionally, Singh noted the challenge of pink bollworm infestation, which he monitors diligently to ensure a substantial cotton yield.
Singh, cultivating cotton across a 7-acre plot, has already commenced the first picking from his fields. The initial picking yields 3 quintals, with two more pickings expected from the same fields. In the last two seasons, Singh fetched Rs 8,000 to 9,000 per quintal price.
Vinod Gupta, a commission agent based in Fazilka Mandi, conveyed that cotton arrivals had commenced around five days ago. Although the quantity is modest, the quality is commendable. The current rate for the crop stands at Rs. 6,500 per quintal in Fazilka mandi, and it might rise based on demand dynamics.
Anil Nagori, former President of Arhtiya Association Abohar Cotton Mandi, noted the inauguration of cotton arrivals in their mandi. On Monday, 1,200 quintals of crop arrived at a rate of Rs 6,621 per quintal. Nagori anticipated a surge in arrivals during the first week of September. Abohar mandi is the largest cotton mandi in the state.
Bhagwan Bansal, a cotton expert and proprietor of S S Cotgin Pvt. Ltd, a ginning unit in Bathinda, remarked on the reduced international demand this year, partly due to stress in the European Union. He highlighted the strain on the spinning industry, contributing to farmers receiving only the MSP price.
In a parallel trend, cotton cultivation area also witnessed a significant decline this year, with only 1.70 lakh hectares dedicated to it compared to 2.49 lakh hectares the previous year. The government aimed for 3 lakh hectares of cotton area this year, but all targets fell short. Historical data from 1960 reveals that this year marks an all-time low, with coverage dipping below 2 lakh hectares for the first time.
While cotton could serve as a water-efficient alternative to paddy crops, this year saw a shift towards paddy cultivation. Despite the potential to cultivate around 8 lakh hectares of cotton in Punjab, only the Fazilka district upheld the trend, as other cotton belt districts focused on paddy cultivation.
Experts expressed concern over this negative trend in Punjab, which struggles to divert farmers from paddy to other crops, including cotton
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