Adilabad likely to emerge as top cotton trading unit in 2015-16

Adilabad is on the northern tip Of Telangana Stat not affected by the deficit monsoon is likely to emerge as a top cotton trading unit in 2015-2016 given the expectations of a bumper yield, but which has left an adverse impact on almost every cotton growing area in the country.

Addi Ramchander Reddy, a cotton commission agent and market observer in Adilabad said that purchase in the private sector will be far less in quantum as there are no big players left in the market now.

The yield of cotton this year is anticipated to be in the range of 8 quintals to 10 quintals per acre. The area under the crop being over 3.17 lakh hectares, the total produce would be in the vicinity of 70 lakh quintals.

The Cotton Corporation of India (CCI) has decided to start purchase of cotton under its MSP operations in the district, tentatively on October 13, by which time, arrivals of the new crop to pick up momentum.

As the current price of cottonseed is a high of about Rs. 2,000 per quintal, the chances of private traders entering the fray is also higher.
The entry of private traders may keep the price of the ‘white gold’ higher than the MSP of Rs. 4,100 per quintal for top quality cotton containing less moisture, in October.

The average investment remained comparatively lesser at Rs. 18,000 per acre this season owing to rainfall occurring at desired intervals. The improved yields will therefore ensure healthy profits for farmers.

CCI Adilabad branch manager, K.M. Reddy disclosed that the CCI will continue operating 25 purchase centres in the district as they are in the process of readying the cotton processing units. They will strictly implement the condition related with moisture content to be in the range of 8 to 12 per cent in the produce.

However, the experience of last season shows that it is difficult for the farmer and the CCI to weigh the produce in the concerned market yard and transport it further to the factory. The government, on its part will need to open sub market yards at places like Bellampalli, Kadem, Neredigonda, Sonala etc. where ginning factories are located even 22 km away from the market yard.