MADURAI: While the farmers in Madurai have welcomed the cotton harvest season with high hopes this year, the severe drop in cotton prices after two consecutive years of profitable rates in the market, has left the farmers in a fix. Though the regulatory market prices are rounded at Rs 55 per kg, the open market prices remain below Rs 50 per kg.
K Muthuram, a traditional cotton farmer from Sivaramottai near Madurai says the farmers in Madurai have spent nearly Rs 10,000 per acre for cultivating cotton crops this year, with high hopes of obtaining profitable prices like the previous year. "However, to our shock, the demand for cotton has dropped in the market, and the prices have dropped to Rs 40-Rs 50 per kg in the open market. We have to spend at least Rs 250-Rs 300 for each agricultural worker for harvesting the cotton. Despite spending hefty amounts from our own savings as the prices have severely dropped this year," he said.
"Irrigation woes and the recent heavy mists have slightly affected this year's harvest, as some of the cotton cultivation has withered. With the water that is available now, we have brought the crops to harvest stages ahead of the harvest season. We hope that the prices of cotton would go up during the later part of the season, so we might get some profit this year," he added.
According to the sales data from the previous year's sales, the average price of cotton was just around Rs 53 - Rs 60 per kg in 2029. And in 2021, due to the increase in yarn prices, cotton prices also increased to an average price of Rs 77 per kg. As the demand sustained, the prices increased to Rs 100 - Rs 113 per kg till early 2022. However, towards the end of 2022, the prices started to decline in Madurai and Ramanathapuram markets. This year, the harvest season has kicked off at an average value of Rs 55-Rs 60 per kg for quality cotton in the regulatory market and Rs 40 - Rs 50 per kilo in the open market.
Agriculture department officials said more than 5,000 hectares of land have been used for cotton cultivation in Madurai this year. Senior officials from the Agriculture marketing department stated that farmers from various parts are bringing their harvested cotton crops to Thirumangalam regulatory market for sales. The cotton is being sold through secret auctions at an average price of Rs 55-Rs 60 per kg, based on the arrival of cotton at the regulatory market. Officials requested more farmers to opt to sell their cotton crop through regulatory markets at a decent price than the open market.
While speaking, Ramalingam, a farmer leader from Madurai said small farmers, in a single day, harvest hardly a bag of cotton, and a large amount of it is spent as labour costs for the harvest farmers. "We cannot spend more on transporting the cotton to the Thirumangalam regulatory market for sales. Farmers are selling their harvest at lower prices to traders who approach them in their villages. Considering the welfare of the farmers, the state government should take action towards providing cost-free transportation of harvest to the market for sales or the agricultural marketing department should consider hosting auctions in nearby areas from the villages, which have larger areas of cotton cultivation," he said.