Cotton procurement at sixes and sevens

The New Indian Express, Feb 11, 2013
By Uma Shankar Kar | ENS - BHAWANIPATNA 

After battling rains, cotton farmers of Kalahandi are up in arms against faulty procurement.

Around 27,711 farmers opted for cotton as an alternative cash crop last kharif season and 42,813 hectares (ha) were covered under cotton crop which is 17 per cent more than in 2011-12. Last financial year’s coverage was 39 pc more than 2010-11.

The yield of last kharif season was 4,80,000 quintals as due to delayed but continuous rains, earthing and hoeing operations for cotton crop could not be done properly, affecting growth.

The Central Government fixed the minimum support price (MSP) for cotton at ` 3,900 per quintal, higher than last year. However, with the cotton price fluctuating in the international market, not many are coming forward to buy cotton. Apparently, no State or Central Government agency procures cotton from farmers here except the Cotton Corporation of India, the premier institution to deal with cotton production and marketing. Private millers and agencies purchase it. Besides, there is no mechanism to ensure that the farmers get the MSP for their produce.

Since the procurement began in November last year, only eight private agencies have come forward to purchase cotton. The six companies that had procured cotton last year have backed out this time due to fluctuating market prices. “As on today, while farmers are not ready to sell cotton at less than `4,000 to ` 4,500 a quintal depending on the quality, the private agencies are not willing to pay even the MSP,” said a source at the Regulated Cooperative Marketing Society here.

Under these circumstances, only 2,04,000 quintals of cotton has been sold through mandis, which is only 50 per cent of the total stock.

The district has four cotton mandis at Karlapada, Utkella, Biswanathpur and Utchla besides three temporary ones at Tuting, Goikata and Panimunda which are open as per the requirement of farmers.

A few days back, traders refused to procure cotton from Utchla mandi citing high cost of transportation.

The State Government and some voluntary organisations earlier had persuaded the farmers, earlier living in misery, to shift their agricultural practice from traditional millet cultivation to cotton as part of drought mitigation programme.

The black cotton soil is best suited for cotton crop. And the farmers have been reaping significant benefits in the last one decade. Such was the response that the State Government had even launched a campaign with the slogan “Grow Cotton, Reap Diamond.” Over the years, the coverage of area under cotton increased from 2,223 ha in  1995-96 to 42,813 ha, the highest in the State so far.