Eyeing better prices, Punjab, Haryana cotton farmers hold back crop | chandigarh | Hindustan Times
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Eyeing better prices, Punjab, Haryana cotton farmers hold back crop

Cotton arrivals in Punjab and Haryana have shrunk by more than 30% in the current season, with cotton growers holding back crop in anticipation of fetching higher rates, hitting the ginning sector hard. "Cotton growers in Punjab and Haryana have held back the crop as they want more price for their crop. As a result, cotton arrivals have dipped," Northern India Cotton Association president Mahesh Sharda said on Tuesday.

chandigarh Updated: Nov 27, 2013 00:17 IST
PTI

Cotton arrivals in Punjab and Haryana have shrunk by more than 30% in the current season, with cotton growers holding back crop in anticipation of fetching higher rates, hitting the ginning sector hard.


"Cotton growers in Punjab and Haryana have held back the crop as they want more price for their crop. As a result, cotton arrivals have dipped," Northern India Cotton Association president Mahesh Sharda said on Tuesday.

Cotton prices in Punjab and Haryana have been hovering around Rs 5,000 to Rs 5,200 per quintal, which is about 30% up compared to last year's price, cotton traders said.

Arrivals dropped by more than 30% to 6.2 lakh bales in Punjab and Haryana in the current season. Last year, in the corresponding period, the arrivals were to the tune of 9.25 lakh bales in both states.

Cotton experts said some cotton growers who had also sown basmati crop were not keen on selling cotton as they had already fetched higher rates from basmati.

"Some growers have made a big amount of money by selling basmati paddy crop, therefore they do not care about bringing cotton crop in the market," he said.

Prices of basmati paddy witnessed more than 50% jump for their produce in the kharif marketing season in Punjab and Haryana.

Traders pointed out that the elections in Rajasthan had also impacted crop arrivals, with farmers of adjoining areas in neighbouring states, including Abohar, Fazilka, Sirsa and Hisar, busy with the polls.

Shrinking arrivals of cotton have turned out to be a blow for cotton ginners in Punjab and Haryana. They said their production capacities had dropped by up to 80%.

"A majority of our ginning facilities have cut down their capacity utilisation by 70-80% for want of cotton," Punjab Cotton Ginners Association president Bhagwan Bansal said.

Punjab and Haryana have 165 and 140 cotton ginning units, respectively.

Meanwhile, big spinning units in north India are procuring cotton from Madhya Pradesh, Gujarat and Maharashtra for their own requirements.

"Spinning units are purchasing cotton from other states, including Madhya Pradesh, Gujarat and Maharashtra. The rates in these areas are also 3-4% cheaper," Vardhman Textiles chief general manager IJ Dhuria said.