Cotton growers face another rough year as prices low

Nagpur: The economic slowdown and unseasonal rains may bring one more year of trouble for region’s cotton farmers. Rains have increased the moisture content of the crop due to which private traders are not offering more than Rs4,800 a quintal as against the minimum support price (MSP) of Rs5,600 for cotton.

When farmers demanded rate not below the MSP, the ginning mills that had started procurement 3-4 days ago have stopped buying.

It is post Diwali and cotton procurement has not begun yet. Traders say on account of low rates of yarn, they cannot afford to buy raw cotton at MSP. Yarn is fetching a low price due to a lack of demand in the textile industry on account of general slowdown. Even good quality cotton having moisture within acceptable limits is fetching Rs5,100 to 5,200 a quintal, said sources.

Amid political crisis in the state, no formal orders have been issued for Rs10,000 crore aid package announced by Chief Minister Devendra Fadnavis for farmers hit by unseasonal rains. However, officials in the state’s revenue department said president’s rule in the state will not withhold implementation of the package.

Sudhir Kothari, a director at the agriculture produce marketing committee (APMC) at Wardha district’s Hinganghat, a major cotton trading centre, said buying was expected to start by November 15. Admitting it has been delayed, he said even the crop was late by a month this year.

Kothari said some of the ginning mills in Ralegaon Tehsil of Yavatmal that started purchasing cotton shut down after farmers demanded payment at MSP. At Adilabad in neighbouring Telangana, 500 vehicles had reached a ginning mills’ gate but only a few could be accommodated and the centre closed, he said. There are reports of mills having stopped purchases in Amravati district also, said farmers.

Kishore Tiwari, chairman of Vasantrao Naik Shetkari Swavalamban Mission (VNSSM), said the traders were paying as low as Rs3,500 a quintal for the lower grade cotton. “This is one of the worst crises,” he said. Devanand Pawar, a Congress leader from Yavatmal, said the Centre should intervene and provide immediate aid to the farmers.

Pawan Singhania, a mill owner from Wardha, said there was high moisture content in cotton, which cannot be processed without drying. Mills’ premises were strewn with cotton left for drying, he said.

“Lint, which is processed from raw cotton, is priced up to Rs40,000 a bale in the open market. At this rate, no trader can afford to give more than Rs5,100 to Rs5,200 for raw cotton.” he said.