The arrival of fresh cotton crop has begun in mandis and the early prices have brought cheer to farmers. As per reports, on the first day of the arrival in Muktsar grain market, cotton fetched Rs 10,251 per quintal against the MSP of Rs 6,225 per quintal.
The surviving cotton crop in Punjab has started the year on a good note despite frequent pest attacks. When compared to the minimum support price (MSP) of Rs 6,280 per quintal for the 27.5-28.5MM staple type, the new cotton crop is fetching over Rs 9,500 per quintal, although at a slow pace.
Some cotton farmers claim that the prices in the nearby Fazilka district are nearly the same. They believe that prices will continue to rise in the coming days due to the high demand from cotton mills this year.
According to the Pakistan Cotton Ginners Association, the neighboring country's excessive rain has flooded and ruined 40% of the cotton crop.
The US has boycotted Xinjiang-produced (China) goods, notably cotton, and as a result, its imports have decreased by 3.7% from the previous year. China is the source of 21.5% of US cotton imports, while India's share climbed in the first five months of the current fiscal year from 16.5% to 19.2%.
Prices have hovered between Rs 6,200 and 11,000 per quintal throughout the previous growing season. On August 31 of last year, the cost of cotton in Bathinda district ranged from Rs. 6,200 to Rs. 6,500 per quintal.
According to an official, the harvest in the region that is still producing is growing smoothly, and farmers can expect to receive good returns. The situation for Indian cotton appears favorable given the US's decreased imports from China following the boycott of the crop from Xinjiang, which produces about half of all the cotton grown in China.
However, the demand for finished goods is on the lower side due to the conflict in Ukraine and the unfavorable conditions in Europe, which is why Indian business is not very enthusiastic. Despite all of this, cotton is expected to provide farmers with greater profits, according to Mahesh Sharda, a former president of the Indian Cotton Association Limited.
