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A sustained rally in cotton prices following weak crop prospects has started getting reflected in cottonseed prices as well, making cattlefeed (cottonseed cake) and edible oil (cottonseed oil) costlier.
According to ginners, cotton seed prices have jumped about 25 per cent within a month’s time — from ₹2,400 a quintal in March to ₹3,000 now.
“We typically see cottonseed prices rising near the end of the season, around July. But this time, the prices have started going up now and may further go up, making cattlefeed and cottonseed oil costlier,” said Bachubhai Antrolia, a ginner in Manavadar, Junagadh district. After the ginning process, cotton fibre is separated from the seed and the seed is then processed to make cake and oil. Cottonseed yields about 85 per cent cattlefeed or cake and about 15 per cent oil.
According to Antrolia, a sharp increase in cotton prices has resulted in pricing disparity, and the units have had to trim their operations to about 30 per cent of the actual capacity.
“If cattlefeed prices go beyond the reach of farmers, they will switch to alternative feeds such as maize. But for cottonseed oil, the prices may not fluctuate much and remain in the range of other vegetable oils such as palm oil,” said Antrolia.
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