CHENNAI: Cotton prices have touched a new peak, with cotton being sold for Rs 10,761 per quintal at the regulated market auction in Villupuram. While the sharp rise in prices is sure to spread concern among textile mills, it has created excitement among farmers and traders.
During the auction, farmers from cotton cultivation hubs like Cuddalore, Ranipet, Tiruvannamalai, and Perambalur bring their produce to the market, said a Daily Thanthi report.
Usually, cotton is sold between Rs 9,000 to Rs 1,000 per quintal. For instance, the highest price recorded at the market last year was Rs 9,700, said officials. However, the increase in demand this year has led to the surge in price.
Traders from Tirupur, Theni, and many other places have flocked to the Villupuram market in large numbers. The increase in demand this season has intensified the competition between the traders, who are trying to outbid each other to buy higher quality cotton.
The cotton-selling season, which began on April 1, will continue till June. Officials said that if the current trend of demand continues and arrivals remain limited, cotton prices may continue to stay high in the coming weeks as well.
Meanwhile, Farmers expressed happiness over the record-breaking price rise, stating that the improved rates would help them recover cultivation expenses and provide better income this season.