Commodities

Raichur cotton soars to more than double of MSP

Anil Urs Hubli | Updated on February 11, 2011

File photo. - G.N. Rao   -  Business Line

Cotton prices in the Raichur market is currently quoted around Rs 5,625 a quintal, 69.23 per cent higher than the minimum support price (MSP) of Rs 2,600 fixed by the Government.

With the north Karnataka region getting good rains during the kharif season, the yield is higher between 12-15 quintal a hectare.

Arrivals

Cotton arrivals in the markets of north Karnataka have been normal.

Cotton cultivation this year is intensive in Gulbarga, Davangere, Raichur and Haveri districts of Karnataka.

The State accounts for 6.55 per cent of cotton area (4.66 lakh hectares) and 7.02 per cent of the cotton production (10.15 lakh bales) in the country during the year.

The MSP fixed this year for cotton is Rs 2,600/quintal for medium staple and Rs 3,000/quintal for long staple cotton.

The Domestic and Export Market Intelligence Cell (Demic) established at the Department of Agri-business Management, University of Agricultural Sciences, Dharwad, has forecast the prices of cotton to be around Rs 3,800-4,100/quintal from February to March in Raichur, Ranebennur and Haveri markets.

“If the cotton export is allowed for more than 55 lakh bales, prices in the Indian markets are likely to increase,” a Demic official said.

“Farmers are advised to keenly follow fallow the export performance before taking up marketing decisions,” he added.

Published on February 08, 2011

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