Farmers’ crucial meet on 26th Octo. to Discuss Cotton Pricing-Times of India

Farmers’ crucial meet on 26^thocto. to discuss Cotton Pricing:Maharashtra cotton federation demands Rs.4200/- MSP

* “Cloth, garment prices have doubled I last two years, it would be unjust to pay two year old price to raw cotton when farmers have incurred heavy expenses in inputs,”-N P Hirani-chiarman-The Maharashtra state cotton grower’s co-operative federation

** “ When Indian crop is bad, the government readily allows free imports to help the garment, textile selector. So why does it not show the same sensitivity for farmer and provide incentive to exports when demand and price are good in world market” asked Kishor Tiwari.

Nagpur: amid reports that private traders have started buying cotton in open market from farmers at prices ranging between Rs. 4000 and Rs. 5000 a quintal, the farmers as well as activists in the field will be meeting on octobe 26 at Pandharkawda for a kapus parishad (cotton conference) where they will wok out a strategy on pricing.

Cotton is the biggest cash crop grown in Vidarbha region and some parts of Marathwada and Khandesh. The price the crop gets decides the fate of three million families in the state which has the largest area under cotton crop in the country.

The Centre and the state government have indicated that they would not be in a position to pay more than Rs. 3000 a quintal as the minimum procurement price, a rate fixed two years ago. But farmers’ pressure groups like Vidarbha Jan Andolan Samiti, which is organizing the conference, say the price is unfair as input costs have gone up in the last two years and so is the spiraling inflation.

“Open market prices are already ruling over Rs 4000 a quintal. While there are clear indications that prices may firm up in international market mainly because crops in China and Pakistan have been ruined by floods, the Indian farmer could take advantage of the situation and export to the countries like China, Bangladesh, where there is high demand for short staple cotton that we produce” said Kishore Tiwari of the VJAS.

But, strangely, succumbing to the pressure of the textile lobby the Union government has proposed to impose export duty Rs 2500 a tonne. “This decision is bound to bring down domestic prices by 30%, hitting the domestic farmers” said Tiwari.

Questioning the restrictions put on export by removing it from open general license regime, Tiwari said the government was doing injustice to the cotton growers. “ When Indian crop is bad, the government readily allows free imports to help the garment, textile selector. So why does it not show the same sensitivity for farmer and provide incentive to exports when demand and price are good in world market” asked Tiwari.

Demanding the domestic support price be hiked to Rs 4500, he said such a step could improve the state’s economy too as it depends a lot on cotton.

Maharashtra cotton federation rubbishes textile sector’s fears &demands Rs.4200/- MSP

The Maharashtra state cotton grower’s co-operative federation which once managed the unique monopoly cotton purchase scheme but now plays the role of commission agent for the central agency NAFED is watching for a fresh agreement before starting cotton procurement season in the state.

Instead of procuring on its own, the federation has been working as agent of NAFED which buys cotton from farers through the federation. In the process the federation gets a commission of 2%.

The federation which is headed by a political appointee- N P Hirani- as chairman has recommended to the state marketing and cooperation minister Haeshwardhan Patil to plead with the Centre for a raise in cotton support price to at least Rs 4000 a quintal.

“The textile sector’s fears are rubbish. The garment and textile industry is spreading scare that the sector may collapse if the cotton prices go up. When countries like China can import cotton and export textiles at competitive rates in world market, why cant Indian textile industry do the same,” asked Hirani.

“Cloth, garment prices have doubled I last two years, it would be unjust to pay two year old price to raw cotton when farmers have incurred heavy expenses in inputs,” he said.

He said any agreement with the NAFED is likely only by month-end and soon after that the procurement may begin. He also stressed that international prices were high this year and export restrictions put on Indian farmer be removed immediately.