Buoyed by an encouraging scenario in the international market, cotton brought to the market yard of Hinganghat’s Agricultural Produce Market Committee (APMC) fetched an impressive price of Rs 10,070 per quintal, on Wednesday. This price is believed to be the highest in last three years. On May 6, total 3,987 quintals of cotton was purchased that had reached the APMC in 200 big and small vehicles. Notably, Cotton Corporation of India (CCI), Central Government’s cotton procurement agency, has increased the price of cotton bales twice in the last one week.

 

The rate was first increased by Rs 800 and then again by Rs 2,200, resulting in a total hike of Rs 3,000, and its direct impact is now being seen in the open market. The price of cotton bales has also increased from Rs 62,000 per bale to Rs 64,000. The price of cotton silk has also gone up to Rs 4,500 per quintal. It may be noted that the Hinganghat APMC has completed purchase of 10 lakh quintals of cotton this year as on April 16. Then, the rate was Rs 8,570 per quintal. In the last 10 days, the price is reaching a new high each day.

 

As on May 5, it is recorded that 1,88,475 quintals of cotton was purchased in the private cotton market here. Currently, 13 ginning mill buyers are purchasing cotton. On Wednesday, all cotton that came into the market was purchased at a rate of around Rs 10,000. Looking at the positive trend, some cultivators have held back their stock in the hope of further rise in price. This indicates that cotton will be available for sale in the Hinganghat APMC till May 31 this year. APMC Chairman Adv Sudhir Kothari has directed APMC staff to ensure smooth procurement process and take utmost care that the there is no discrimination against farmers in the price. 

 

Due to the increase in each component, the price of cotton crossed the Rs 10,000 mark at Hinganghat APMC on May 6. Due to the increase in price of yarn made from cotton, spinners and textile mills are also offering high price for cotton bales. Since the demand for Indian yarn is coming from China, a situation has been created that is favourable for local cotton produce. It may be noted that the ‘ice cotton’ variety of New York is fetching a rate of 83 dollars. Earlier, it was 65 dollars. Currently, the Indian rupee stands at Rs 95 per dollar, which has also been conducive to the increase in prices.