RAMANATHAPURAM: Farmers in the district are elated over the increased price of cotton for the third consecutive year in the State, thanks to the surge in yarn price. With harvest season kicking off in the district, heavy demand in open and regulatory markets for cotton has led to the record high price of Rs 112 in the Ramanathapuram district. Also, the annual cotton trade has crossed Rs 200 crore this year, said sources.
Being the second-largest agricultural crop in the district, cotton would usually be cultivated on about 4,000 to 4,500 hectares in Ramanathapuram. The sporadic rainfall and the increasing cotton price have led the cultivation area of cotton to drastically increase to 9,300 hectares this year, according to the agriculture department.
Speaking to TNIE, Joint Director of Agriculture Department in the district Tom P Silas said, "As the district witnessed a decent amount of rainfall in the proper time gap, the cotton crops have benefited a lot in the district. Usually, the average yield would be around 6 - 8 quintals (600 - 800 kilos) per acre, but this year, thanks to the rainfall. The average yield has risen to 10 quintals (1,000 kilos) per acre. More than 95% of the cotton cultivated in the district is native varieties and the rest 5% is BT cotton variety. The harvest started earlier this month and is expected to conclude by July month."
He added, "We have not availed of our share of water from the Vaigai river this year, which we will be using later. With the irrigation issues solved, and owing to the prevailing demand, more farmers are likely to be involved in cotton cultivation for the next season as well."
When contacted, the secretary of the marketing committee of the agriculture business department in the district Raja said, "The harvested cotton is being sold through special auctions held in three regulatory markets — Kamuthi, R S Mangam, and Paramakudi — apart from the open market. Earlier, in 2021, the price of cotton was Rs 75 to Rs 80 per kilo and in 2020, it was just Rs 53 to Rs 60 per kilo, but this year the price of cotton has skyrocketed to Rs 112 per kilo. Considering the prevailing demand for cotton, the prices are likely to cross Rs 125 rupees or even further later this harvest sales season."
He added that last year, about 22,800 metric tonnes of cotton were sold for Rs 139.9 crore which is reportedly the largest harvest quantity and trade done for cotton in the district. With cultivation area doubled this year when compared to last year, an increase in yield and cotton price has given scope for new sales high, Raja said. “Approximately, this year, the cotton trade is expected to cross Rs 250 crore. So far in 2022, over 500 tonnes of cotton has been sold through the regulatory market," he pointed out.
Officials from agri-marketing said even though the cotton price has hiked in the regulatory market, farmers are opting for an open market which takes nearly 8% as commission owing to several issues. The department has urged the farmers to opt for regulatory markets for selling their harvest for profitable prices, sources said.
Kannan, a farmer from Kamuthi, told TNIE, "Even before the season begins, many farmers would be booked by private traders with small advance amounts for selling the cotton to them after harvest. After several years, we are able to get a profitable price for cotton and more farmers are likely to shift to cotton from other crops considering the price. Hoping that the price of cotton would increase even further, we are delaying the harvest a bit. However, with the district witnessing surprise rainfalls, which could spoil the harvest, we are harvesting the crop faster.”