Andhra Pradesh Market Watch: Cotton and Groundnut Prices Surge Above MSP as Paddy Lags Behind

Andhra Pradesh Market Watch: Cotton and Groundnut Prices Surge Above MSP as Paddy Lags Behind

Explore the latest 2026-27 agricultural market trends in Andhra Pradesh. Cotton and Groundnut prices surge past MSP, signaling strong gains for farmers, while Tomato arrivals increase amid steady demand. Get the full breakdown of commodity prices, arrivals, and MSP comparisons for Paddy, Cotton, and Vegetables in our comprehensive market report.

 

AMARAVATI – The latest agricultural market data for Andhra Pradesh reveals a shifting landscape for regional farmers, as high-demand commercial crops like cotton and groundnut continue to outperform government-mandated price floors. While pulses and oilseeds show robust market strength, the staples of the cereal sector, particularly paddy, are seeing more subdued activity at the onset of the 2026-27 marketing season.


Commercial Crops Lead the Charge

The agricultural sector in Andhra Pradesh is currently defined by the strong performance of Fibre Crops and Oil Seeds. According to the latest district-wide figures, Cotton remains the standout performer. Against a Minimum Support Price (MSP) of ₹7,710.00 per quintal, market prices have consistently breached the ceiling, reaching as high as ₹8,099.00. Despite a moderate arrival volume of 794.00 metric tonnes, the sustained price point of approximately ₹7,992.00 suggests a high industrial demand that is benefiting local growers.

Similarly, Groundnut producers are reaping the rewards of a tight market. With an MSP set at ₹7,263.00, the commodity is trading at a premium, with prices peaking at ₹7,589.00 per quintal. The arrival of 474.00 metric tonnes indicates a steady flow of produce into the mandis, with the average price holding firm at ₹7,440.25.

The Vegetable Volatility Index

The vegetable market continues to exhibit its trademark volatility, though prices remain relatively stable for essential kitchen staples:

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Cereals and Administrative Oversight

In contrast to the booming fibre and oilseed sectors, Paddy (Common) is maintaining a quiet profile. The MSP for the 2026-27 season is established at ₹2,369.00, yet current market arrivals are minimal, recorded at just 24.59 metric tonnes. State administrative officials are closely monitoring these figures to ensure that as the harvest season progresses, procurement centers are fully operational to prevent any distress sales below the MSP.


Economic Implications

The current price trends highlight a favorable environment for Andhra Pradesh's diversified farming portfolios. The fact that major commodities are trading above the MSP is a positive indicator of market health and farmer income security. However, the disparity in arrival volumes between vegetables and grains suggests that logistics and seasonal timing continue to play a critical role in price discovery. As the 2026-27 season unfolds, the focus for the state’s agricultural department will remain on maintaining this price equilibrium while scaling up procurement infrastructure for the cereal harvest.

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