3 min readPuneNov 17, 2022 07:04 PM IST
First published on: Nov 17, 2022 at 07:04 PM IST
With soyabean and cotton growers of the country holding back their produce, cotton ginners and solvent extractors are facing a shortage of supply. While the processors say they are operating below their capacity, the growers say they are hoping for a better price.
Cotton and soyabean farmers have increased their area this kharif in hope of windfall gains. The lint crop has been grown over 127.5 lakh hectare (lh) while the oilseed has been grown over 120.90 lh area. Last season, the average price commanded by cotton growers was around Rs 10,000 per quintal as against the government declared Minimum Support Price (MSP) of Rs 5,726 per quintal while soyabean farmers have been able to get average prices of Rs 6,000 per quintal as against its MSP of Rs 3,950.
Despite increased acreage, farmers feel the price will be the same or higher than last year. Pradeep Jain, founding president of Khandesh Gin /Press owners and traders welfare association pointed out that already kapas (seed cotton) prices have touched Rs 9,000/quintal. “This is the start of the cotton marketing (October to September) season and prices are much above the new MSP of Rs 6080/quintal. Thus, farmers are confident that prices would rise further and are holding on to their crop,” he said. Cotton traders have estimated the total crop for this season at around 360 lakh bales (one bale has 170 kg of ginned pressed cotton).
The tale of soyabean prices is more interesting given the fact that the markets had started on the lower circuit of Rs 4,500/ quintal. Soyabean Processors Association (SOPA) — the Indore-based organisation of processors — has estimated that the country has produced 120 lakh tonne of the beans this kharif. Given the worldwide rally in edible oils, soyabean prices have seen a rise soon enough. Naresh Goenka, vice-president of SOPA, said at present the prices have climbed to Rs 5,800-6,000/quintal. “This rally in prices has led to farmers stocking rather than offloading,” he said.
Both cotton and soyabean farmers are confident that post January, the prices will improve further. Yuvraj Patil a soyabean and turmeric farmer from Ardhapur taluka of Nanded district is yet to sell his 160 quintal soyabean. “Once the prices reach Rs 7,000/quintal I will liquidate the stock,” he said. Patil felt his desired price would be breached by January or February next year.
While farmers have held on to their stock, processors are complaining of raw material pull which has affected their business. Jain said at present, most ginners and press owners are operating in around 30 per cent of their capacity. “Farmers are not ready to sell – the raw material we are getting is by invite only,” he said. Similarly, Goenka said most plant owners are now operating at lower than their capacity.
Workers load cotton in a truck at an Agricultural Produce Market Committee (APMC) yard in Rajkot, Monday, Nov. 7, 2022. (PTI/File Photo) 
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