Cotton Price comparison

Cotton price rise is in accordance with market fundamentals and international volatility in cotton prices.   The price situation  for  2010-11 cotton season is at Annexure-I.  Cotton price have moderated from April  2011 and currently stand at Rs. 36500/- per candy.      Cotton prices had been ruling above MSP level from the beginning of the cottons season 2010-11.  The opening cotton prices in medium staple and long staple group had been higher by around 60% and 28% respectively over MSP.  In the wake of high cotton  prices in cotton season 2010-11, the cotton farmers  received better and attractive prices for their produce as against MSPs and preferred to sell their produce at prices higher than MSPs.      As price moderation has already taken place, no further policy interventions are necessary.

 

Annexure A

 

Fortnightly Movement of Cotlook A Index vis-a-vis S-6 : 2010-11 Cotton season

 

date	Price of S-6 cotton
01/10/2010	37700
15/10/2010	41000
29/10/2010	43000
15/11/2010	42500
30/11/2010	42000
15/12/2010	39800
31/12/2010	43000
14/01/2011	43900
31/01/2011	48800
15/02/2011	58500
28/02/2011	58000
08/03/2011	58500
15/03/2011	59000
31/03/2011	61500
15/04/2011	57800
03/05/2011	49000
16/05/2011	45000
31/05/201	46000
15/06/2011	43000
30/06/2011	38000
15/07/2011	33500
29/07/2011	30800
16/08/2011	35500
30/08/2011	36500

 

(1 candy=355.62 kgs)