Fear of Cotton price crash in Telangana due to rise in production

Telangana's Cotton production is expected to touch 2.8 million metric tonnes in 2017-18, nearly 13.36% higher than the production of 2.47 million metric tonnes in the previous year, according to senior officials from the agriculture department.

For the first time since Telangana’s formation, the area of Cotton cultivation in 2017-18 touched nearly 1.9 million hectares, which is more than 50% higher than the previous year’s 1.24 million hectares.

With an expected bumper Cotton production in Telangana, the state’s agriculture department is concerned about prices decreasing in the open market this year. Cotton produce in state-run agricultural market yards will begin arriving from next week.

In view of the situation, CCI is also expected to set-up 59 additional centres (84 existing) across the state. The minimum support price (MSP) for Cotton for 2017-18 has also been revised to Rs 4,320 per quintal, against the previous year’s Rs 4,160.

Cotton Growers in Telangana has fetched about Rs 5,500 per quintal last year.
 
 
 

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