FARIDKOT – With low demand for cotton from China, the world’s largest consumer of cotton and yarn, the cotton prices have touched an all-time low in the local markets.
At present, cotton is selling at Rs 3,950-Rs 4,100 per quintal against Rs 5,000-5,300 in the corresponding period last year.
Over 20 per cent fall is visible in lint cotton rates which plunged from Rs 4,500-4,600 per maund (37.324 kg) last year to Rs 3,400-3,450 this year in October.
Though the government has fixed a minimum support price (MSP) of Rs 3,950 for cotton, low demand has forced the farmers to sell their produce at a price less than the MSP.
The Cotton Corporation of India (CCI) is under pressure to start procurement on the MSP. BK Mishra, Chairman and Managing Director, CCI, said they would purchase a maximum quantity of cotton from the mandis in Punjab so that the farmers got remunerative price.
The unprecedented downward movement in cotton prices started early this month after China clamped restrictions on shipments to offload its huge stock, said IJ Dhuria, director (material), Vardhman.
