Cotton prices to rule above MSP, says TNAU

Farmgate prices of good quality cotton during October-November this year will likely rule around ₹6,800-7,000 per quintal. Cotton sown during the current season will fetch ₹7,100 during January-February 2024, according to a survey carried out by the Domestic Export and Marketing Intelligence Cell (DEMIC) of Tamil Nadu Agricultural University (TNAU).

This is higher than the minimum support price of ₹6,620 a quintal fixed by the Centre for this season (October 2023-September 2024).

The varsity, in a note, advised farmers in Tamil Nadu to take their selling and sowing decisions depending on the onset of North-East monsoon and arrivals from other States. In Tamil Nadu, cotton is grown both under irrigated and rain-fed situations. Sowing of the rain-fed crop in the Southern districts extends up to October. 

A survey carried out by the Domestic Export and Marketing Intelligence Cell (DEMIC) of Tamil Nadu Agricultural University (TNAU) said cotton production in the North has been affected by Pink Boll Worm (PBW) infestations though the area under the natural fibre crop has increased in Rajasthan, Punjab and Haryana.

The Price Forecasting Scheme is funded by World Bank supported Tamil Nadu Irrigated Agricultural Modernisation project.

Quoting the Ministry of Textiles, a press release from TNAU said cotton was cultivated across 130.61 lakh hectares with a production of 343.47 lakh bales during the 2022-23 season — up six per cent compared with the preceding year. Cotton is largely grown in Gujarat followed by Maharashtra, Telangana, Rajasthan and Karnataka. In Tamil Nadu, cotton cultivation is expanded to 1.62 lakh hectares with a production of 3.56 lakh bales during the 2022-23 season, marking a 10 per cent increase in acreage.

The Price Forecasting Scheme has analysed the past 15 year historical cotton prices prevailed in Salem region and conducted market survey to facilitate farmers to take up selling and sowing decisions.