Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule,
around the seeds of cotton plants of the genus Gossypium. Current estimates for world
production are about 25 million tonnes annually, accounting for 2.5% of the world's
arable land. China is the world's largest producer of cotton, but most of this is used
domestically. The United States has been the largest exporter for many years. According
to data compiled by Cotton Corporation of India (CCI), India is expected to produce 374
lakh bales of cotton during the current year as against 410 last year. Last year, with a
higher supply, rates ranged between Rs 4,200 to 4,400. Experts say that this is because of
poor demand from the textile industry which is still left with a sizeable amount of last
year's carry forward stock.
Cotton being the major crop of Raichur region of Karnataka, Kharif grown cotton
started flowing slowly into the markets. Since the price of cotton ruling over the months
in the markets is volatile, farmers are in pain. Under such conditions, to facilitate the
cotton growing farmers to take precise judgment regarding place and time for the sale of
the commodity, the prices of cotton that would prevail in major markets of North
Karnataka during post harvest months have been predicted by the Domestic and Export
Market Intelligence Cell, Department of Agribusiness Management, University of
Agricultural Sciences, Dharwad.
As revealed by the forecast analysis of cotton by using 20 years monthly price
data and further by keeping in view of valuable suggestions of traders, agricultural
scientists and progressive farmers, the prices of cotton is expected to hover around Rs.
3900-4200 in the month of January and Rs.4100-4500 in the month of February and
March, 2013 in Raichur regulated market. The Minimum Support Price (MSP)
announced by the Government for the current year for medium and long staple cotton is
Rs.3600 and Rs.3900 respectively. The prices are expected to be better off during the
months of February and March. Therefore, farmers are here by advised to store cotton up
to February and March and then release for the market. The storage cost is around Rs.4
per quintal per month. Farmers are advised to bring dried, cleaned and pure white cotton
to markets, since it fetches higher prices.