Cotton prices rise in Karaikal after regulated market auction.

Cotton prices rise in Karaikal after regulated market auction

Karaikal cotton farmers have seen prices jump significantly after the first day of auction at the government-regulated market. This forced private traders to offer better rates in the open market. Cotton prices in Karaikal had plummeted below Rs 50 per kg in recent weeks. However, the auction last week at the Agriculture Department's market saw prices reach Rs 68 per kg, exceeding the minimum support price (MSP) of Rs 66 per kg. This positive outcome led private traders to raise their prices to Rs 62 per kg on Sunday.

J Senthil, Secretary, Karaikal Marketing Committee, reported around 85 quintals of cotton were brought to the market by farmers. The auction achieved a strong average price of Rs 6,739 per quintal, with the top price reaching Rs 7,190.

In a strategic move, the marketing committee invited representatives from Tamil Nadu mills, creating a more competitive buying environment. Encouraging continued participation, Senthil emphasized the ongoing weekly cotton auctions. The regulated market auction has brought much-needed relief to Karaikal cotton farmers.