Cotton prices in Karimnagar markets drop by ₹500 per quintal
Pressure on prices due to extended import duty exemptions and high moisture content; prices in Peddapalli fall to ₹7,300
Karimnagar: Cotton prices in the agricultural markets of the former Karimnagar district in Telangana have seen a decline of approximately ₹500 per quintal over the past few days. Before the onset of the Dussehra festival, when procurement began, cotton was trading at over ₹9,000 per quintal; however, the price has now fallen to around ₹8,500 per quintal.
According to traders, the central government's decision to extend the import duty exemption on cotton until December 31, 2026, has exerted downward pressure on prices in the domestic market. The government had previously granted an import duty exemption from June 1 to October 31, 2026, which has now been extended by an additional two months.
While cotton procurement in the markets commenced before Dussehra, the volume of arrivals increased significantly following the festival. At the Jammikunta agricultural market, the initial auction price for cotton was ₹9,250 per quintal, which has since dropped to ₹8,500. Cotton with high moisture content or poor quality is fetching prices even lower than the Minimum Support Price (MSP) of ₹8,667 per quintal.
In the Peddapalli market, too, cotton prices have witnessed a notable decline. Previously, cotton was trading there between ₹9,000 and ₹10,000 per quintal, but prices have now fallen to a range of ₹7,300 to ₹8,500 per quintal. Market experts anticipate that prices may decline further in the coming days.
According to market sources, the price of baled cotton has decreased from ₹68,000 to ₹62,000 per quintal. Meanwhile, the price of seed cotton has fallen from ₹4,800 to ₹4,200 per quintal. A market source indicated that imported American cotton is available to Indian ginning mills at ₹62,000 per quintal. Consequently, local traders are offering lower prices for domestic cotton.
Excess moisture content in the cotton is another major reason for the decline in prices. Some farmers are bringing cotton to the market yards without drying it thoroughly, which has led traders to offer lower rates. This price drop has compounded the difficulties faced by farmers; the cotton crop’s development had already been adversely affected by deficient rainfall, pest infestations, and the rising cost of pesticides.
Speaking to the ‘Deccan Chronicle’, R. Mallesham, Secretary of the Jammikunta Market Yard, explained that the decline in prices is due to high moisture content in the cotton and the extension of the exemption period for import duties. He expressed concern that prices could fall further in the coming days. However, he noted that the Cotton Corporation of India (CCI) is prepared to procure cotton and has established a procurement center at the market yard. So far this season, approximately 12,000 quintals of cotton have arrived at the Jammikunta market.
read more:- Cotton Prices Fall ₹1,000 in Maharashtra as Import Duty Exemption Extended
