Market Report: Groundnut and Cotton Surge as Paddy Hovers Near MSP in Andhra Pradesh

Market Report: Groundnut and Cotton Surge as Paddy Hovers Near MSP in Andhra Pradesh

Recent data from across the state's districts reveals a robust demand for oilseeds and fiber crops. Groundnut, which carries a Minimum Support Price (MSP) of Rs. 7,263 per quintal, is currently commanding market prices as high as Rs. 8,299. This significant premium highlights a supply-demand gap that is currently favoring local farmers. Similarly, Cotton remains a strong performer, with market rates reaching Rs. 7,992 per quintal, comfortably clearing the established MSP of Rs. 7,710.

The Cereals and Pulses Outlook

In contrast, the staples market remains relatively flat. Paddy (Common) is trading at approximately Rs. 2,350 per quintal, trailing slightly behind its MSP of Rs. 2,369. While the arrival volumes remain modest at roughly 24.59 metric tonnes in recorded segments, the price gap suggests a cautious start to the trading cycle.

The pulses sector shows a slight underperformance for Bengal Gram, which is currently trading at Rs. 5,350 per quintal, falling short of the Rs. 5,650 support price.

Vegetable Price Volatility

The perishables sector continues to exhibit the standard volatility associated with seasonal harvests:

• Tomato: Prices are stabilizing between Rs. 1,214 and Rs. 1,252 per quintal, supported by high arrival volumes peaking at over 315 metric tonnes.

  Read More Telangana Agricultural Markets See Stability as New MSP Cycle Approaches

• Potato: Trading remains steady at Rs. 2,000 per quintal, though arrival volumes remain negligible compared to other commodities.

The current market dynamics underscore a favorable environment for commercial crop cultivators in Andhra Pradesh. However, the slight deficit in Paddy and Bengal Gram pricing relative to MSP may prompt administrative oversight to ensure price stability and procurement support for farmers as arrival volumes increase.