India: Cotton prices up but no cheer for farmers

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India: Cotton prices up but no cheer for farmers

As the initial cotton stocks begin reaching markets, opening rates for the season range between Rs 4200 to Rs 5200 a quintal. This is over Rs 1,000 more than last year's level, when the rates firmed up only by end of the season.Rains have affected the crop not only in Vidarbha but also elsewhere bringing down output and raising the prices. As against October-end normally, it may take a week or two more this year for cotton arrivals to reach full swing, sources said.

However, the region's farmers may not be able to reap the benefits of high prices, as excessive rains have drastically reduced their harvest, claim farm activists. Analysts also apprehend the current level may not be sustained for long, and prices may ease as supplies increase. Both Gujarat and Maharashtra, which are major cotton growing states, were lashed with excessive rains. While there are reports of extensive crop damage in Vidarbha region, a record output is expected in Gujarat. There, the rains have only delayed the crop not damaged it much, commodity analysts said. So the prices could ease, as supplies increase by next month.