Telangana & Andhra Pradesh's Cotton Arrivals Fall as Prices Remain Low

While farmers have blamed it on poor yields this year due to excessive rains at the start of the season, the trade and industry have claimed that some farmers are stockpiling due to relatively lower prices.

Andhra Pradesh's situation is no different. The state's average price was even lower, at Rs 7,400 per quintal. On December 24, the Adoni market yard recorded 140 tonnes of arrivals, compared to 320 tonnes on the same day last year.

"They expect higher prices as the procurement season progresses. They set new records last year. Farmers are stockpiling produce because prices are relatively low this year, according to a top executive of a textile company who requested anonymity.

He, however, contended that the situation may not have as much of an impact on the country's overall arrival numbers as the days. "We anticipate an increase in arrivals in the coming weeks. "We don't see a significant drop in the country's overall numbers," he said. Last year, the two states produced roughly one-fourth of the country's total cotton output of 353 lakh bales.

The average price at the market yard was Rs 7,900 per quintal, up from Rs 8,000 on the same day last year. Prices even broke the Rs 10,000 barrier in January 2021.

Farmers, on the other hand, have denied the claim, claiming that output has dropped significantly this year to 2-3 quintals per acre (down from 4-6 quintals last year) due to heavy rains in July and September.

"Farmers must resow the crop, increasing production costs. "The formation of bolls was affected by excess vegetation, resulting in very low yields," S Malla Reddy of Telangana Rythu Sangham explained.

However, the trade believes that the prices were excessively high the last time. "It cannot be sustained. "We are unable to purchase the commodity at last year's prices," as per a trader.