There is a steep drop in cotton arrivals in Telangana and Andhra Pradesh. At Warangal market yard, the arrivals this year has fallen by about 45 per cent to 1.98 lakh quintals as on today against 3.61 lakh quintals the same day last year.

While farmers have attributed it to the poor yields this year owing to excessive rains at the beginning of the season, the trade and industry have alleged that some farmers are holding back stocks due to relatively lower prices.

The situation in Andhra Pradesh is no different. The average price in the State stood even lower at ₹7,400 a quintal. The Adoni market yard clocked arrivals of 140 tonnes on December 24, against 320 tonnes the same day last year.

“They are anticipating higher prices as the procurement season progresses. Last year, they clocked record prices. Farmers are stocking up their produce as the prices are relatively low this year,” a top executive of a textile company told businessline, wishing anonymity.

He, however, contended that the situation may not drag the country’s overall arrival numbers as the days. “We expect the arrivals to increase in the next few weeks. We don’t see any drastic fall in the country’s overall numbers,” he said.

The two States grew about one-fourth of country’s total cotton output of 353 lakh bales last year.

The average price at the market yard stood at ₹7,900 a quintal against ₹8,000 the same day last year. In January 2021, the prices even breached the ₹ 10,000 mark.

Farmers, however, have denied the allegation, saying that the output has fallen significantly this year to 2-3 quintals an acre (against 4-6 quintals) due to heavy rains during July-September last year.

“Farmers have to sow the crop again, adding to the cost of production. Due to excess vegetation, the formation of bolls got affected, resulting in very low yields,” S Malla Reddy of Telangana Rythu Sangham said.

The trade, however, feels that the prices were unreasonably higher last time. “It’s not sustainable. We are in no position to purchase the commodity at last year’s prices,” a trader pointed out.

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