Govt prepares machinery for cotton procurement

Expressbuzz, Nov 27, 2008

BHUBANESWAR: With 40 per cent hike in the minimum support price (MSP) of seed cotton for the current kharif, the State Government has made district-wise arrangement for procurement of cotton and the district authorities have been asked to ensure that the cotton growers are paid the MSP.

It has been decided at the State level cotton development meeting here recently that traders have to procure seed cotton from the marketing yards of regulated market committee (RMC) and village point as well in Kalahandi, one of the major seed cotton producing districts of the State.

Cotton traders have to obtain trading license from district authorities by pledging security deposit of Rs 2.5 lakh or 1.25 percent of their expected annual purchase value. Such a measure has been taken to save farmers from being exploitated by traders.

Besides, seven contract farming sponsors (CFS) have been allowed to make village procurement in the district, said Agriculture Director Arabinda Padhee.

In Balangir district, three out of nine CFS have been allowed for cotton procurement from RMC market yards and village points. The three CFS are Ambika Agro India Pvt Ltd, Balangir, Jaydurga Ginning Mills, Kantabanji and Pratima Agro Industries, Titlagarh.

Although six other CFS are involved in contract farming in Balangir and are keen for procurement of seed cotton, they are yet to get trading license, Padhi said.

The Centre has fixed the support price for medium staple length seed cotton of fair average quality (FAQ) at Rs 2500 per quintal and Rs 3000 per quintal for long staple length cotton.

Seed cotton of KBK districts are considered to be best in the country and there is huge demand for Orissa variety outside the State. About 30,000 quintals of cotton have been procured so far. Cotton Corporation of India (CII), the nodal agency of the central Government has been requested to take part in the procurement of seed cotton in the state.

In the current kharif, about 58,000 hectares were covered under cotton cultivation as against a target to 75,000 hectares.