Bathinda, November 1
In a significant development which could have far-reaching impact on farmers, prices of raw cotton today came down drastically and touched minimum support price (MSP) in Rajasthan and approached the MSP in Punjab.
Information gathered by The Tribune revealed that fair average quality cotton in Rajasthan had been fetching Rs 1,760 per quintal, the MSP. The price of cotton today came down to Rs 1,850 per quintal in Abohar which is only Rs 35 more than the MSP.
At certain markets where the arrival of cotton is insignificant, the prices have fallen below the MSP. At Sunam, the raw cotton (narma) fetched only Rs 1,750 per quintal, which is Rs 65 less than the MSP.
This is for the first time after many years that the prices have fallen so much. The price at the beginning of the season was nearly Rs 2,500 per quintal.
Mr Ashok Kapur, a former president, Northern India Cotton Association, Bathinda, said today’s arrival was around 25,000 bales in the northern zone as compared to average arrival of 20,000 bales till yesterday. He said the arrival had been picking up.
Worried over this development, the Cotton Corporation of India (CCI) has asked its field staff to purchase cotton.
“We have been keeping a constant watch on the market. Whenever the prices go below the MSP, the CCI starts purchases to stabilise the price”, said Mr S.R. Mittal, Manager, CCI, Punjab. He said the CCI had purchased nearly 7,000 bales in the entire northern zone, including 2,900 bales from
Punjab.
