Cotton Association of India, trade body estimates cotton production of 375 lakh bales of 170 kg each in 2016-17, up by 11 percent over the previous year. Despite higher production, the current cotton prices are ruling lower than previous year but they are still above the minimum support price (MSP) and expect prices to remain above MSP till December.
The current cotton arrivals from kharif crop are at their peak, with mandis across the country getting about 1.60 lakh bales every day.
The current price of good quality kapas (raw cotton with seeds) is between Rs 4,300/quintal and Rs 4,600/quintal as against the MSP of Rs 4,320/quintal for long staple cotton.
The current market price of cotton is down by 10 percent to 15 percent over the same period of the previous year. However, the only respite for farmers is that it is still above the MSP, when prices of most other agricultural commodities are ruling lower than MSP.
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