White gold: Cotton prices soar on woes of Egypt, China and Pakistan

Never-before deals for Punjab farmers as international demand drives up local market prices to Rs 7,210 per quintal

A record of sorts was created on Thursday when cotton grower Jagjit Singh sold four quintals of his produce for Rs 7,210 a quintal in the Rampura Phul cotton market. This is said to be the highest-ever price fetched by a quintal of cotton in India. In the last season, the maximum cotton price recorded was around Rs 3,400 a quintal.

On Thursday, the average price of cotton in the Rampura Phul market was recorded around Rs 7,000 per quintal. Sources said the supply crisis triggered by the ongoing political tumult in Egypt — a major contributor to the global cotton supply — has led to an increase in the prices of cotton worldwide.

This season, America has witnessed its highest cotton prices since the Civil War. Analysts attribute the massive increase in cotton prices to “panic” buying by mills.

Earlier, floods in the cotton producing regions of Pakistan and China had led to a fall in worldwide production of cotton, which worked to the advantage of Indian cotton growers. After crossing the Rs 5,000 a quintal mark at the start of this season (itself a record in the Malwa belt), the price of cotton has risen steadily.

“Rs 7,210 per quintal is the highest ever recorded price of cotton in India,” said Rampura Phul Market Committee Secretary Vijay Sharma. He said that already 55 lakh quintals of cotton had arrived in Punjab mandis and another five lakh quintals were expected to arrive by the end of March, when the season ends.

(Source: http://www.indianexpress.com/news/white-gold-cotton-prices-soar-on-woes-of-egypt-china-and-pakistan/748955/)