Home / Knowledge / News / Textiles / M'shtra farmers panic as cotton prices touch lows
M'shtra farmers panic as cotton prices touch lows
27
Dec '11
A sharp fall in cotton prices has further aggravated the worries of farmers in the west Indian State of Maharashtra.

Induced by the high prices and impressive returns generated by cotton during last fiscal, farmers increasingly engaged in cotton production and produced a record crop this season.

However, increased production coupled with a drop in demand from China this fiscal has caused the global cotton prices to fall sharply, and the same has even impacted the domestic prices leading to a cut in extraordinary profits reaped by cotton farmers' last fiscal.

Stating that their cost of production comes to Rs. 5,700 per quintal, farmers from Maharashtra are seeking that the minimum support price (MSP) be raised to Rs. 6,000 per quintal from Rs. 3,300 and Rs. 2,800 per quintal for long staple and medium staple cotton, respectively.

At all-India level, cotton has attained great heights over the past 10 years. Cotton output which rested at just 10 million bales (1 bale = 170 kg) during 2000-01, is expected to cross the 36 million bales mark this fiscal.

In fact, no other agricultural crop has been able to grow so much so swiftly in India. While it is widely accepted that the great advancement started since the introduction of Bt cotton, it is not completely recognized that productive cotton exports also contributed to the success.

India exported over five million cotton bales costing more than US$ 6 billion during last fiscal.

In spite of all this, Maharashtra cotton farmers are in distress mainly due to meagrely yields.

As compared to Gujarat, where over 50 percent of the area under cotton cultivation is irrigated, in Maharashtra only 5 percent of area is irrigated. As a result, while Gujarat yielded 650 kg of crop per hectare during last fiscal, Maharashtra's yield was just 332 kg per hectare.

As such, the estimated production cost for the 2011-12 season is much high for Maharashtra at Rs. 2,960 per quintal, compared to Gujarat's Rs. 2,216 per quintal and India's weighted average of Rs. 2,528 per quintal. Thus, it is obvious that cotton farmers in Maharashtra are reaping lowest returns on their investments.

Analysts say the medium staple cotton growing farmers of the State are drawing negative returns from MSP over comprehensive cost. The cotton type with MSP of Rs. 2,800 is reaping a 5.4 percent negative return, according to them.

However, long staple cotton with a MSP of Rs. 3,300 per quintal generated 11.5 percent positive returns. Considering the differences in costs of individual farmers, it is very much possible that some of the farmers in the State would be even incurring losses over their total cost of production.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 27th Jun 2017

Govt defers tax deduction at source provision under GST

E-commerce players in India will not be required to deduct tax on...

Apparel/Garments | On 27th Jun 2017

Future Group aims Rs 12,000 crore in fashion business

Future Group, which runs retail stores across India under various...

Textiles | On 27th Jun 2017

AEPC & NSDL to help exporters with GST compliances

Apparel Export Promotion Council (AEPC) and National Securities...

Interviews View All

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search