Cotton prices drop by 40 per cent in Ramnad market
RAMANATHAPURAM: Despite a good yield, farmers are having a hard time fetching good prices for their cotton harvest. Due to high availability, the prices have dropped by over 40% from prices of last year and off-season, which is less than Rs 50 in the open market. Traders and farmers troubled over the falling demand for their harvest, seek the state government to take measures towards aiding them.
Cotton is the most cultivated agricultural crop, after paddy, in Ramanathapuram, across over 9,000 hectares. The farmers have opted for cotton cultivation for the second season as well, which has led to an increase in acreage by 1,000 hectares. The harvest season, which started in March, is heading towards a close.
Agriculture marketing department officials stated the department offers to aid farmers in selling cotton through regulatory markets, as a majority of the cotton is being sold through open markets currently. As of Wednesday, the market price for cotton is in the range of Rs 49 to Rs 55 per kg, where the price varies with quality.
“Last year, cotton prices ranged from Rs 70 to Rs 100 per kg, but there is a significant drop this year. It is difficult to employ enough number of workers for the harvest season, as each worker has to be paid more than Rs 250/day. This puts the farmer in a huge loss,” said a cotton farmer, Selvam.
“Many cotton mills have shut down, and the remaining few are refraining from purchasing cotton, We have enough stock of cotton, but mills are not willing to purchase it, leaving us in a financial crisis. The quality of cotton harvested in the second season is notably of inferior quality, which could also be one of the reasons for the plummet in prices to below Rs 50, as cotton of good quality has always fetched above Rs 70. Despite the losses, we purchase the cotton to remain in business,” said Sivakumar, a cotton trader.
P Suresh, a cotton farmer and trader, said “Most farmers opt for conventional varieties of cotton which has poor demand in the market due to its inferior quality. The state government should promote the cultivation of hybrid seeds which could lead to higher demand and superior quality cotton. The farmers should plan accordingly to ensure that the crop can be harvested in the off-season, as the demand will be high, which can fetch higher prices.”
He added that though the union government has fixed the Minimum Support Price (MSP) for cotton as Rs 70, the price in the market is much lower. He urged the government to purchase cotton at MSP, like paddy, as this could aid farmers.
