Traders employ delay tactics

IBNlive, Nov 30, 2011
BHAWANIPATNA: Procurement of cotton in the market yards in Kalahandi has been little or nothing with most traders restricting themselves to window shopping. With the non-intervention of Cotton Corporation of India and the delaying tactics of traders, the farmers are at the end of their tether. They are demanding better price for their produce.

The district administration had decided to operate regular market yards, twice a week, at Karlapada and Utkela and fortnightly at Uchla and Biswanathpur. Temporary yards would be opened at Koten, Panimunda and Godipata, as need be.

Though the procurement process in the market yards at Karlapada and Utkella began as per schedule, the business is yet to pick up.

At Karlapada, only 139 quintals of seed cotton were sold on the first day at the rate of ` 3,910 per quintal, while at Utkella 146 quintals were sold at ` 3,850 on the second day and 140 quintals at ` 3,780, on the third day.

With traders playing the wait and watch game, farmers too are cautious and avoiding the yards. The farmers are also not happy with the prices being offered.

A field functionary of the Agriculture Department said the traders are employing demotivating tactics on farmers with the latter skipping the market yards. Once cotton piles up, the traders would be able to dictate terms and purchase the produce at a lower price at the village-level, he added.

This despite the fact that the staple length and strength of Kalahandi cotton are more than the standard set for the minimum support price. Considered as one of the best in the country, the staple cotton here is 33 MM against the stipulated length of 29.5 MM.

Lack of services like mechanical sample analysis and means to measure staple length and strength of seed cotton has proved detrimental to farmers. The regulated market committees (RMC) get 1 per cent in every deal and its last year’s earning from cotton trading was ` 40 lakh. Cotton was this year grown in a record area of 34,315 hectares with the harvest stretching of 4 lakh quintal. While the farmers are expecting more than ` 6,000 per quintal, the highest price offered last year, their fate hangs on market forces.