A Study on Behaviour of Arrivals and Prices of Cotton in Different Markets of Haryana

Abstract

The goal of the current study was to examine the growth, seasonal variation, and volatility of cotton prices and arrivals in a few key cotton markets in Haryana. The monthly data on cotton arrivals and prices were gathered from 2005–2006 through to 2021–2022. The study employed the Compound Growth Rate, Moving Average technique, and Coeffi cient of Variation measure. The results revealed that cotton prices in the selected markets were found on the increasing side which ranged from 7.13 to 8.01. Among the three districts the maximum growth rate of cotton prices was recorded in Adampur (8.01%) followed by Uklana (7.95%) of Hisar district and minimum growth rate of cotton prices was recorded in Uchana (7.13%) of Jind district. Results of a seasonal analysis revealed that cotton arrivals in the targeted markets were higher during the peak period of months from October to January and showed decreasing trend during the subsequent months from February to May. (Lean period). The Coeffi cient of Fluctuation ranged from 1.11 to 20.97% in the selected cotton markets, demonstrating the presence of not signifi cantly increased volatility during the study period, although the intra-year prices in those markets remained nearly stable with less than 10% of variation. Through stock management and the use of risk management techniques like crop insurance, futures markets, etc., the increased volatility can be reduced. Farmers should sell their cotton in lean period to get better price of cotton.