Cost of cotton rises to Rs 9500 per quintal. Huge profits expected from international market.

A cotton crop that has survived the heavy damage by massive pest attacks this year has started entering the mandis slowly. Acquiring a price of Rs 9,500 per quintal when the minimum support price (MSP) is Rs 6,280 per quintal for the staple variety of 27.5 MM and 28.5 MM has induced a hope of better profit in Punjab.

Despite the adverse conditions faced by the growing cotton crop like whitefly pest attack, decreased acreage, and damage caused by heavy rainfall, especially in cotton growing districts like Fazilka and Muktsar, the market value of cotton crops looks pleasing as per the market watchers. Cotton was sown in 6.10 lakh acres and 7.85 acres of land in Haryana and Rajasthan respectively. Unfortunately, 50,000 acres out of the 2.48 acres of land used in cotton farming were destroyed by the flood in Punjab as reported by the state agriculture department. But the remaining area is marked to yield good quality crops.   

Cotton farming in other countries is not deprived of heavy damages this year, adding up to the possibility of earning huge profits with an increase in demand in the international market. Pakistan Cotton Ginners Association has reported a loss of 40% of the cotton crops in floods caused by heavy rainfall in the country.

Cotton is one of those products from Xinjiang in China which has been boycotted in the US. As a result, US imports comprise a decrease of 3.7% from China and an increase of 2.8% from India this year. On the other hand, the ongoing war in Ukraine has a negative impact on the demands for finished goods in Europe. Former President of Indian Cotton Association Limited Mahesh Sharda says, “Despite all this, the cotton is expected to give more returns to the farmer”.