Cotton Prices Hit ₹9,260 per Quintal in Adilabad, Surpassing MSP

Procurement

Cotton fetched a record ₹9,260 per quintal on the first day of sales at the Agriculture Market Yard in Adilabad, Telangana, beating the government’s minimum support price of ₹8,667 per quintal for cotton with 8% moisture. District Collector Rajarshi Shah officially opened the procurement process, toured the yard and checked the trading setup. The state has readied 33 ginning mills and 18 dedicated cotton procurement centres across the district to help farmers sell their crop. Farmers at the yard were given basic facilities such as drinking water and could buy a meal for just one rupee under a special scheme. Analysts say the premium over MSP reflects buoyant demand from both domestic textile units and overseas buyers. Trade officials expect buying activity to rise in the coming days as harvesting continues in parts of the district. However, a shortage of rain and a long dry spell during the recent monsoon could cut yields in the rain‑deficit zones of north Telangana, a key cotton‑growing area.

Context

Cotton is a major cash crop in Telangana and the government’s MSP aims to protect farmer incomes. Record prices often signal strong demand from textile mills, while inadequate rainfall can lower overall production, affecting future market balances.