Uncertainty dogs cotton procurement in Kalahandi

Expressbuzz, Nov 24, 2009

BHAWANIPATNA: Stage is set for cotton plucking in Kalahandi district and sources said cotton will be ready for marketing next week. However, farmers are a worried lot because of the uncertainty in procurement of cotton.


This year cotton is grown on 18,292 hectares and the agriculture department expects a yield of about 2. 2 lakh quintals. Last year the major procuring agent was Cotton Corporation of India (CCI) which procured 40 percent of the 2.06 lakh quintals harvested in the district. The rest was procured by some private firms who entered into an agreement with farmers under contract farming system and others who got licences to procure cotton at mandies.

But as these private traders failed to fulfil the terms and conditions of the MoU, it has been decided that there would be no contract farming this year. Also the private traders, who participate in the procurement at mandies, have not renewed their licences this year. To add to the uncertainty, this year CCI is planning to procure cotton only at its ginning mill sight at Kesinga.

This has caused concern among farmers. In the district-level cotton development committee meeting held here recently attended by farmer representatives, district-level officials, representative of Regulated Market Committee (RMC) and CCI and cotton traders, the farmer representatives expressing concern said the CCI should procure cotton from ‘mandi’ points because it will be difficult on the part of farmers to carry their products to Kesinga from far away places.

The meeting decided that four regular mandies and two temporary mandies of RMC will operate for smooth cotton procurement. But as the private traders are yet to renew their licences to participate in the procurement in the mandies, uncertainty prevails over procurement. Farmers of the district expect active intervention of CCI this year like last year to streamline the procurement process.

If the uncertainty prevails, market-watchers say it may lead to distress sale and farmer unrest.