MADURAI: Following a rise in cotton prices for three consecutive years, the rate witnessed a drop this week in Madurai and Ramanathapuram districts. The slump hurts more as this is the season that usually sees cotton bales get sold at record high prices. On Monday, a kilo of cotton was sold at just `73-`90 in the two districts.
According to data from the Agriculture Department, cotton is cultivated on about 5,700 hectares in Madurai and 9,300 hectares in Ramanathapuram. Acreage-wise, both districts witnessed an increase in cultivation this year, as more farmers shifted to cotton farming due to the surging prices. Considering the successful cultivation last year, the cotton farming acreage of cotton was expected to witness a minimum of 40% increase.
From `53-`60 per kg in 2020, the cotton price jumped to an average price of `77 per kg the next year. The price further soared to `100-`113 in the initial half of 2022. The farmers and market experts who expected that the price would touch the `125 mark soon were dealt a rude shock by the recent slump.
Speaking to TNIE, Mercy Jeyarani, secretary of the marketing committee of the agriculture marketing department in Madurai, said, “About 3.25 quintal of cotton was brought for auction this week and it was sold at `73-`90 per kg based on its quality. Increased moisture content in the cotton bales has led to a decline in prices. Considering the demand, we expect the prices to fluctuate in the coming days.”
Secretary for the committee in Ramanathapuram district P Raja concurred and the price dropped to `90 per kg in the district this week. “Notably, the price of cotton hit a record high of `112 in the third week of June. Then the price dropped as the demand for cotton slightly declined in the southern districts because the harvest season had just begun in the delta districts. The harvest season has reached the final phase in Ramanathapuram district,” he added. Due to the dip in prices, cotton farmers may reconsider their cultivation preference in the coming seasons.