Cotton Prices Drop by ₹1,000 Following Extension of Import Duty Exemption Until December 31
Drought in Chhatrapati Sambhajinagar Reduces Yield to 4 Quintals per Hectare; Farmers Face Estimated Losses of Up to ₹113 Crore
Chhatrapati Sambhajinagar, Maharashtra. Cotton prices in the Chhatrapati Sambhajinagar district have fallen by ₹1,000 per quintal. When the new cotton harvest began arriving in the market, the price stood at ₹9,500 per quintal; it has since dropped to ₹8,500 per quintal. The central government’s decision to extend the 11% import duty exemption on cotton until December 31, 2026, is expected to exert further downward pressure on prices in the domestic market.
Chhatrapati Sambhajinagar district is a major hub for cotton production. This year, drought and adverse weather conditions have negatively impacted both the yield and quality of the crop. Cotton is cultivated across approximately 2.82 lakh hectares in the district. Due to poor weather, the average yield is estimated to have fallen to about 4 quintals per hectare.
According to traders and the ginning industry, approximately 11.30 lakh quintals of raw cotton are expected to reach the market in the district. A price decline of ₹500 per quintal could result in a reduction of about ₹56.50 crore in the total sales value for farmers. A drop of ₹1,000 per quintal could push these losses to approximately ₹113 crore.
Based on a 33% lint recovery rate from raw cotton, it is estimated that about 74,500 bales will be produced in the district. Calculations by the ginning industry suggest that a price decrease of ₹1,000 per bale could lead to a reduction of approximately ₹7.45 crore in the total sales value of the lint. District Superintendent Agriculture Officer Deepak Gawali stated that to ensure better prices for cotton growers, it is essential to promote exports and consider providing necessary duty-related concessions.
Shantilal Pahade, Chairman of the Vaijapur-based Bhagyoday Ginning Industry, remarked that an increase in import duty exemptions could continue to exert pressure on cotton prices. The ginning industry is already grappling with economic challenges due to a decline in both production and quality this year. Furthermore, the increased availability of cheaper imported cotton could negatively impact the demand for domestic lint.
