Adilabad Cotton Prices Drop Sharply as Farmers Face Syndicate Pressure and Low Yields

Cotton prices in the Adilabad market have dropped sharply within just a fortnight, falling from an initial high of 9,260 rupees per quintal down to 8,740 rupees. Farmers blame local traders for forming a syndicate to control and suppress auction prices. Although auctions appear competitive on the surface, traders reportedly decide a final price in advance and stop bidding once they reach that limit. As a result, prices in Adilabad remain about 100 rupees lower per quintal than in other markets.

Yield And Moisture Losses

Agricultural yields have already halved due to the impact of El Nino, leaving farmers with minimal output. Surender, a farmer from Umri in Talamadugu mandal, waited for better rates before selling his cotton at 8,740 rupees per quintal after prices fell by 520 rupees in just fifteen days. Another grower, Govardhan from Mediguda in Satnal mandal, harvested only 35 quintals from six acres and eventually sold his stock for 8,500 rupees per quintal on Thursday. Furthermore, auctions apply only to crops with eight percent moisture, cutting one kilo per quintal for any excess moisture. Out of 2,391 farmers who sold 47,000 quintals in Adilabad, only 1,610 actually received the auctioned price.

Declining Support And Political Pressure

The government support price currently stands at 8,667 rupees per quintal, leaving market rates just 73 rupees away from that floor price. Meanwhile, BRS leaders in Narayanpet district have also protested low cotton rates, pointing out that Utkar Cotton Mill in Patharchedu village of Narva mandal is buying cotton for 8,000 rupees while market rates sit at 9,500 rupees. BRS mandal president Maheshwar Reddy stated that this 1,500-rupee gap causes massive losses for cultivators, and local leaders have alleged that mills are also cheating farmers during weighing.

Context

Syndicates and trader cartels in agricultural mandis often manipulate open-market auctions to keep crop acquisition costs low during peak harvest seasons. When yields drop due to climate anomalies like El Nino, farmers face a tough choice between selling early at depressed rates or holding out for better prices while risking further market declines.