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Punjab mandis see 50-fold rise in cotton arrival this year

With private players offering high prices amid rise in demand, Punjab farmers aren’t stocking up cotton crop for procurement by government agencies at mandis -

September 23, 2021 Amid high demand and better prices being offered by private players, Punjab has witnessed a 50-fold increase in the arrival of cotton crop at mandis as compared to the figures till September 21 last year.

According to the Punjab Mandi Board, about 80,000 quintal crop has been purchased at various mandis in the cotton belt spread across south Punjab till September 21. In the corresponding period last kharif season, various purchase centres had reported the arrival of only 1,637 quintals.

Industry sources attribute the sharp rise in arrival of the crop to better rates being offered by buyers, after last year’s uncertainty that had hit demand.

Notwithstanding the deadly pink bollworm attack, Mansa and Bathinda districts have seen a brisk arrival of 27,000 and 12,000 quintals of cotton, respectively. In Fazilka, nearly 26,000 quintal cotton has been sold by farmers till September 21.

According to the mandi board data, cotton is being bought for rates as high as ₹7,010/quintal. In fact, nearly 98% of the produce has been purchased at rates above the season’s expected minimum support price (MSP) of ₹5,925/quintal.

This year, Punjab has an estimated 3.25 lakh hectares under cotton. In a few parts, where cotton is sown before May, picking of bolls commences in mid-August but the major harvest begins after September 15. Market watchers say last year, the demand for cotton was low due to uncertainty caused by Covid-induced restrictions.

Mandi Board cotton state coordinator Rajnish Goel said the average rate of cotton in September 2020 was about ₹4,500/quintal. As the Cotton Corporation of India (CCI) starts buying the non-perishable crop from October 1, farmers have a tendency to stock the produce till the market offers a higher price.

“This time the average rate of cotton is ₹6,800-7,000/quintal, which is much higher than the expected MSP. A formal notification of MSP on long-medium varieties, that are commonly sown in Punjab, has not been issued yet, but it is expected to be ₹5,925,” said Goel, adding that Punjab is expected to surpass last season’s production of 50 lakh quintals.

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