Maharashtra State Cotton Growers Co-operative Federation is expecting a bumper cotton crop in the state this year which is likely to bring cheers to growers in the Vidarbha region too. Vidarbha has the largest area under cotton cultivation in the state and the cash crop has an influence on its rural farm economy in a big way. The yield is expected to be between 350 and 380 lakh quintals this year compared to 300 lakh quintals last season.
Cotton prices have ruled firm as the new season opened with steady flows of raw cotton. The central government has fixed minimum support price (MSP) of Rs 4,100 and the private traders have started purchases last week. They have already collected about 1.5 lakh quintals of cotton at rates fluctuating between Rs 4,150 and Rs 4,450 a quintal which is way above the government fixed MSP.
The cotton prices in the coming days would largely depend on China. Indian cotton growers can expect a good demand and consequently higher rates through exports, if the neighbouring country opens up for imports.