Farmers worry as cotton prices dip

The price of cotton, known as ‘white gold,’ is declining, causing concern among farmers. Farmers are worried that they will face severe losses and are demanding an increase in prices. Due to the international demand for Adilabad cotton, the area under cultivation in the district has been increasing every year. This year, cotton was cultivated on 4,20,000 acres. Officials estimate that the district will produce around 42 lakh quintals of cotton.
Since October 25 this year, cotton procurement has begun in the district through 31 ginning mills under private and Cotton Corporation of India (CCI) management. CCI is purchasing cotton with 8 per cent to 12 per cent moisture at a support price of Rs 7,521 per quintal.
However, deductions in price made by CCI in the name of moisture content, the farmers are paid only Rs 6,800 per quintal, leading to significant losses. On the other hand, when farmers approached private traders, they faced additional cuts.
In the wake of the CCI reducing price in the name of higher moisture content, farmers received only Rs 6,800 per quintal, leading to significant losses for them. Meanwhile, as farmers turned to private traders, the latter took advantage of the situation by reducing the prices drastically, purchasing cotton at Rs 6,500 per quintal.
As a result, farmers have suffered substantial losses. So far, about 30 per cent of the cotton in the district has been purchased through CCI and private traders. However, farmers who were drying their cotton in the hope of higher prices expected support prices to be offered. But with CCI lowering the price by Rs 50 per quintal, the farmers are now facing uncertainty. Farmers, who had stored their cotton at home, are now left with bad news as the prices have fallen further.
Farmers who had already sold their cotton are frustrated by the quality-based price cuts, which resulted in major losses. The recent price reduction by CCI has further fueled their anger. Farmers who had hoped to sell their stored cotton at higher prices now face even greater losses due to the price drop, leading to distress and concern.
Given the heavy investments already made, farmers are worried that with the CCI price reductions, they may be pushed into financial ruin. They are urging the government to step in and prevent further price