Global Economy: TNAU Report Shows That Indian Cotton Price Will Be Higher Than The Minimum Support Price

 

According to foreign news on October 13, from October to November this year, the farm price of high-quality cotton may be around 6800-7000 rupees per kilowatt (=100kg). According to a survey carried out by the Domestic Export and Marketing Intelligence Group (DEMIC) of Tamil Nadu Agricultural University (TNAU), the price of cotton sown in the current season during January and February 2024 will be 7100 rupees.

This is higher than the minimum support price of Rs. 6620 per tonne set by DEMIC for the current year (October 2023 to September 2024).

In a report, TNAU recommended that farmers in Tamil Nadu decide to sell and sow according to the northeast monsoon rains. In Tamil Nadu, cotton is grown under irrigation and rain fed conditions. Cotton planting in the southern region continued until October.

A survey conducted by TNAU shows that although the cotton planting area in Rajasthan, Punjab and Haryana has increased, cotton production in Uttar Pradesh is affected by pink bollworm (PBW) infestation.

A press release of TNAU quoted the Ministry of Textiles as saying that in 2022/23, the cotton planting area will be 13.061 million hectares and the output will be 34.347 million bales, an increase of 6% over the previous year. Cotton is mainly planted in Gujarat, followed by Maharashtra, Trengana, Rajasthan and Karnataka. In Tamil Nadu, the cotton planting area will expand to 162000 hectares, and the annual output will be 356000 bales in 2022/23.