Cotton farmers in Telangana stage protests over sudden drop in prices

This sudden drop has been attributed to sudden increase in arrivals, coupled with absence of trading on the eve of Amavasya

Hyderabad: Cotton farmers in Telangana are grappling with a severe crisis as market prices for the commodity have plummeted below the Minimum Support Price (MSP). This sudden drop has been attributed to the sudden increase in arrivals, coupled with the absence of trading on the eve of Amavasya. As a result, prices have fallen from around Rs 7,000 per quintal to Rs 5,000 per quintal.

In Peddapalli, farmers staged protests and accused market committee members and traders of conspiring to manipulate prices and take advantage of the increased cotton arrivals this season. They claim that their cotton is being purchased at lower prices and then sold to the Cotton Corporation of India (CCI) at higher rates. This has sparked widespread anger among the farming community, who are calling for fair trading practices and immediate intervention to address their concerns.

---

The big drop in cotton prices has sparked farmer protests across the State. Farmers are calling for fair trading practices and immediate intervention. Cotton prices have weakened for the fifth consecutive day in Telangana.

Traders noted that although local demand for cotton yarn is healthy, export deals have been notably lower than usual, prompting spinning mills in the State to purchase cotton only in limited quantities, in line with their immediate requirements.

Despite these challenges, cotton prices in Telangana have remained relatively stable in other districts, with the maximum price in Khammam reaching Rs 7,200 per quintal as of Friday (January 31, 2025). The average price of cotton in India on the same day was Rs 7,149.25 per quintal.

In Telangana during 2024-25, the area under cotton as of September 25 was 43,76,043 acres, compared to 44,52,411 acres during 2023-24. Among districts, Nalgonda stood first with 5,40,022 acres, followed by Adilabad (4,34,993 acres), Sangareddy (3,56,619 acres), Asifabad (3,26,318 acres), and Vikarabad (2,41,592 acres).

Private ginning operations remained sluggish due to prevailing market disparities, making it difficult for mills to source raw materials in a big way effectively.