Cotton seed prices increase 30 per cent in four months despite pressure on cotton prices

PUNE: Although the cotton prices remain under pressure due to over supply and subdued exports, the prices of cotton seeds have increased by 30 per cent in last four years, up from Rs 17/kg to Rs 23/kg.

Cotton seed is used for extracting oil, while the de-oiled-cake (DOC) is one of the important sources of protein for the poultry industry.

Apart from a slight fall in cotton production last year, massive procurement by Cotton Corporation of India (CCI) is being held responsible for the wide fluctuations in cotton seed prices.



Though CCI's cotton sale has been sluggish, it has offloaded the cotton seeds, which do not have longer shelf life, like the cotton fibre. "The CCI's cotton seed sale on large scale had brought the priced down in March/April. However, now there is again shortage of cotton seeds," said BS Rajpal, managing director, Manjeet Cotton.

Cotton seed oil is used as edible oil in Gujarat. It is also used on a large scale for the hotel industry, as well as for blending illegally with expensive oils, as India faces a high deficit of edible oil. According to the Solvent Extractors Association, India's dependence on imported oil has increased to nearly 70 per cent.