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Cotton price touches new high, but who's benefitting?
*Farm activist Kishore Tiwari has questioned this tall claim and said that the cotton production was totally destroyed by the unseasonal rain and farmers have already sold out their produce to the private traders.
"If the claim of bumper crop followed by the farmers holding up the stock is taken for granted then why the inflow is alarmingly low despite such spectacular price in the local market?" Tiwari asked.**
YAVATMAL: With the order of district deputy registrar Harishchandra Hussey to 16 Agriculture Produce Marketing Committees in 16 talukas to submit a report on the details of cotton purchase made by them during the current season, the spree of buying cotton from door to door in the villages by the private players is set to stand exposed.The price of cotton has increased to Rs 6,000 per quintal in recent past. Expecting a global demand for the white gold, the private traders have launched a door to door purchase through their select band of touts. The touts purchase the cotton from the needy farmers and allegedly stock those either in their village godowns or transport it to city cautiously. There are allegations of manipulation in weighing, system of down payment and ascertaining staple length.
If the money is paid instantly, a tout claims around 2% as commission and the needy farmers are left with no alternative but to succumb to the trade tricks. The loot is unabated and nobody was ready to hear the woes of the farmers. But, the DDR has taken cognisance of the hue and cry made by the farm leaders over the well-planned loot and accordingly issued the notice to all 16 APMCS to submit their purchase details. The DDR is expected to take action against those found guilty of exploiting the farmers after getting the report.
The prospects of the cotton production across the world seem to be bleak and the major cotton producing countries have experienced a setback during the current season owing to the adverse climatic adversity. But cotton production in India in general and the known cotton heartland of Maharashtra in particular have comparatively better crops this year.
The prospects of the cotton production across the world seem to be bleak and the major cotton producing countries have experienced a setback during the current season owing to the adverse climatic adversity. But cotton production in India in general and the known cotton heartland of Maharashtra in particular have comparatively better crops this year.
Private traders, unscrupulous touts and money lenders operating across the region have already procured lion's share of this year's yield and they are set to grab the entire profit. According to sources, 22 lakh hectares were under cotton sowing and over 40 lakh quintals were expected this year from which 325 lakh bales are targeted. But, it has come down to only 225 lakh bales. Contrary to claims in BT cotton that 20 quintals is assured yield per acre but the farmers are getting only 2.46 quintal per acre despite spending huge amount for pesticides, seeds and fertilisers.
Chairman of the federation NP Hirani said that the farmers are still holding their yield with an expectation of getting higher price. The Cotton Advisory Board of India has in a recently held survey predicted the yield of a better quantum of 'fadtar' (low quality cotton) due to a second flowering. He said that this fadtar is also set to fetch a rate between Rs 50-55,000 per candy in the international market.
Farm activist Kishore Tiwari has questioned this tall claim and said that the cotton production was totally destroyed by the unseasonal rain and farmers have already sold out their produce to the private traders.
Farm activist Kishore Tiwari has questioned this tall claim and said that the cotton production was totally destroyed by the unseasonal rain and farmers have already sold out their produce to the private traders.
"If the claim of bumper crop followed by the farmers holding up the stock is taken for granted then why the inflow is alarmingly low despite such spectacular price in the local market?" Tiwari asked.
According to him, the cotton crop was damaged due to unseasonal rains and the poor farmers have sold their cotton well in advance to minimise the burden of heavy interest on the loan they have obtained from the banks, private traders and money lenders.
Whatever may be the current price buoyancy in the market, the benefit would certainly be reaped entirely by the private traders, Tiwari said, adding the cotton growers are still pushed to the lurch in a planned manner.
According to him, the cotton crop was damaged due to unseasonal rains and the poor farmers have sold their cotton well in advance to minimise the burden of heavy interest on the loan they have obtained from the banks, private traders and money lenders.
Whatever may be the current price buoyancy in the market, the benefit would certainly be reaped entirely by the private traders, Tiwari said, adding the cotton growers are still pushed to the lurch in a planned manner.
