The raw cotton prices have crashed below the Rs 7,000 per quintal mark due to lower demand in the mandis of Vidarbha region. Farmers who stocked cotton in anticipation of higher prices are selling in panic, said Rohit Rander, a leading cotton trader while talking to The Hitavada. Rander further said that there is an overall recessionary trend in the global markets. The spinning mills and traders are also maintaining lower stocks and inventory this season.
Currently, in the raw cotton prices are being quoted at Rs 6,900 to Rs 7,000 per quintal, depending on the quality. When the raw cotton supply started this season in October-November 2022, the prices were at their highest level at Rs 9,000 to 9,500 per quintal. Farmers expectations were shattered when the cotton prices did not rise above the Rs 10,000 per quintal level like last year. At present there is excess supply in the mandis and prices are crashing. Last season in the month of April-May 2022, the raw cotton prices touched a record high of Rs 13,000 to Rs 14,000 per quintal.
Rander said that the raw cotton prices in India were on the higher side when compared to international prices due to which there was fewer exports. Indian raw cotton prices have to be at least 10 per cent lower than prices in US to make export favourable. India exports raw cotton mainly to Bangladesh, China and Vietnam. Taking stock of the situation, it is expected that the prices could fall by another Rs 200 to Rs 300 per quintal, he added.