With cotton fetching more than the minimum support price on the first day of auction at the regulated market in Karaikal, farmers have something to cheer about as private traders were now forced to offer better rates in the open market.
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Over the past few weeks, the price of cotton had crashed below ₹50 a kg in the open market in Karaikal.
On Saturday, weekly cotton auction began at the Agriculture Department’s Regulated Market in the town and the price of cotton touched ₹68 a kg as against the MSP of ₹66 a kg. Following this, private traders offered ₹62 a kg on Sunday in the district.
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“About 85 quintal of cotton was brought to the Regulated Market by farmers. The maximum price was ₹7,190 a quintal and the minimum was ₹6,289. The average price was ₹6,739 a quintal,” said J. Senthil, secretary, Karaikal Marketing Committee.
Mr. Senthil said the marketing committee brought representatives of mills from Tamil Nadu due to which farmers got good rates. “Now, we learn that the private local traders have upped their prices. Every Saturday, the cotton auction would take place here and we urge farmers to make use of this system.” added Mr. Senthil.
“Earlier, the traders offered only ₹45 to ₹52 a kg. We waited to sell our produce through the regulated market and are happy we got a good price. Farmers are cheated by middlemen generally. We appreciate the Regulated Market’s efforts in organising the auction,” said N. Palaniraja, a farmer from Melaoduthurai village.