Telangana cotton traders offer prices above MSP as farmers face rising costs and falling yields

Cotton traders from other States are offering Telangana farmers prices above the MSP as harvesting gains pace. Farmers cite rising cultivation costs and falling yields. The CCI is preparing 131 procurement centres, while some growers seek better prices in Karnataka

Hyderabad: With cotton harvesting yet to gather momentum in Telangana, traders from other States are arriving to procure the crop, offering prices above the Minimum Support Price (MSP) announced by the Central government.

The Enumamula market in Warangal has been recording steady cotton arrivals over the past five to six days. However, even before the Cotton Corporation of India (CCI) began procurement in the State, private traders had started buying cotton directly from farmers.

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Traders from Maharashtra, Chhattisgarh and Gujarat have arrived in Warangal ahead of the peak harvesting season, offering between Rs.9,300 and Rs.9,600 per quintal. Prices could rise to Rs.10,600 per quintal, the rate being offered in Bhadradri Kothagudem, according to Telangana Rythu Sangham convenor S. Srinivas.

Besides Enumamula, Jangaon, Mahabubabad and Kesamudram are major cotton markets in the erstwhile Warangal district. Julurupadu in Bhadradri Kothagudem district, Jammikunta in Karimnagar district and several locations in Jogulamba Gadwal district are also known for cotton trading.

Unlike farmers in the erstwhile Warangal district, cotton growers in Jogulamba Gadwal are transporting their produce to Raichur and other markets in Karnataka in search of better prices.

Farmers attribute the trend to what they consider an inadequate MSP announced by the Central government. The MSP for long-staple cotton has been fixed at Rs.8,667 per quintal for the current season, an increase of about Rs.550 over last year. However, farmers say the hike is insufficient to cover rising cultivation costs.

The cost of cotton cultivation has increased considerably due to sharp rises in fertiliser, pesticide and labour expenses. The investment is estimated at around Rs.40,000 per acre for land-owning farmers and could reach Rs.60,000 per acre for tenant farmers.

Despite the higher investment, yields have declined. Farmers who previously harvested an average of seven quintals per acre are now getting around four quintals. Against this backdrop, private traders’ offers of Rs.9,600 to Rs.10,600 per quintal are more remunerative than the CCI’s MSP of Rs.8,667, Srinivas said.

“If the State government is really concerned about cotton farmers, the MSP needs to be increased to Rs.12,000 per quintal. Leaving aside profits, farmers should at least be able to recover their investment,” Srinivas said.

During the 2026-27 season, cotton cultivation in Telangana is projected to cover approximately 46.33 lakh acres, with an estimated production of 25.85 lakh metric tonnes. However, farmers estimate that production has declined by at least 15 to 20 per cent compared with last year.

The decline has been attributed to inadequate water availability and insufficient soil moisture, which have affected cotton boll development and reduced boll weight.

The CCI is yet to begin procurement in the State this season. Preparations are under way to establish 131 procurement centres, up from 122 last season. Mills across all categories, from L1 to L12, are to be made operational simultaneously, depending on requirements.