The price of cotton crop on harvest is pegged at Rs.3,900-Rs.4,000 per quintal, thus hovering around the Minimum Support Price (MSP) .
The projection was made by the Agricultural Market Intelligence Centre (AMIC) at Sri Venkateswara Agricultural College, Tirupati, based on market survey as well as the econometric analysis of modal prices of cotton in Warangal market taken for a period of 12 years.
The Cotton Advisory Board (CAB) pegged the country’s cotton output at 330 lakh bales from an area of 117.73 lakh hectares for the current year, against the achieved figure of 355 lakh bales yielded last year. As Cotton Corporation of India (CCI) is the major procurer in the State, the farmers are expected to reap the MSP. The International Cotton Advisory Committee, Washington, has also projected a bleak picture for cotton supply for the year 2012-13, with global production and mill use projected at 25.9 million tonnes and 23.4 million tonnes respectively, resulting in a surplus of 2.4 million tonnes. “The panel further assessed that cotton mill usage would increase in 2012-13 in India, Pakistan, Bangladesh, Uzbekistan, Indonesia and Vietnam, but the global trend could fall by 21 p.c. to 7.7 million tonnes due to lower demand in China.”