Rise in cotton prices benefiting traders
Warangal: The cotton prices are increasing in Warangal Enumamula market yard to Rs 5,065 per quintal on...
Warangal: The cotton prices are increasing in Warangal Enumamula market yard to Rs 5,065 per quintal on Wednesday. According to market officials, the prices are expected to further go upward. Ironically, the prices were down in October 2012, which is considered as lean season, but farmers were forced to sell at Rs 3,300 per quintal, which is about Rs 600 less than the minimum support price. The stocks were cornered by the traders then, and now they are selling in the market at higher price, the farmers claim. Reacting to the development, the farmers staged dharnas and other forms of protests complaining failure of the Cotton Corporation of India (CCI) to stabilize the prices. The agency is supposed to have bought cotton at fixed MSP and in the process stabilise the market price during the fall. Later, since January (2013) this year, the cotton prices are shown raising trend in the international markets and the farmers were getting about Rs 4,000 per quintal. In this season about 19 lakh quintals of cotton came to the market and while CCI purchased nine lakh quintals and remaining 10 lakh quintals were bought by the private traders. With the record increase of cotton price at the last-leg-of-season, the biggest beneficiaries would be the traders who purchase the cotton at lower prices from the farmers at the beginning of the season.