Cotton farmers in Andhra Pradesh are getting remunerative prices. They are probably benefiting from the crop damage in Pakistan, Bangladesh and China. The remunerative price has crossed Rs 4,600 per quintal, which is almost Rs 500 higher than the minimum support price. The average price in the last three years was hovering between Rs 2,500 to Rs 3,000 per quintal. Prices have jumped nearly 100 per cent from the previous season. In anticipation of a further price rise, farmers have, so far, sold just around 8 to 9 lakh bales against the total production of around 22 lakh bales.
Spinning mills who are the main buyers say farmers are refusing to part with their stocks even at prices of Rs 4,500 per quintal. So these mills fear coming under pressure in the coming weeks as the global markets are also indicating low production. The crop damage in Pakistan, Bangladesh and China has triggered a demand in global markets. Pakistan has, so far, imported nearly 30 lakh bales from the total exports of 45 lakh bales from India. India's exports too are expected to go beyond the normal 80 to 90 lakh bales.
On the whole the scenario has come as a relief for Andhra Pradesh’s cotton farmers who had witnessed huge losses in the last three seasons.