All eyes on political price for cotton
http://timesofindia.indiatimes.com/city/nagpur/All-eyes-on-political-price-for-cotton/articleshow/10998722.cms
**"Farmers are sitting on cotton stocks. Less than 30% of the crop has reached the markets," said farm activist Kishore Tiwari. He has been demanding a MSP of Rs 6000. According to him the governments of Gujarat, Andhra Pradesh, Punjab and Karnataka - states where cotton is grown - have also demanded a hike. The CACP (commission for agricultural costs and prices) under pressure from the seven states had almost agreed for a MSP of Rs 4250. But it was the Union agriculture ministry which shot down the proposal''**
NAGPUR: The meek Vidarbha farmer, only known for his suicidal tendency in the face of a crisis, seems to be flexing muscles this time. Till now, crying for government aid, several peasants in the region have withheld cotton supplies so as to squeeze traders.
The trick worked and cotton prices have rebound from Rs 3700 a quintal last week to Rs 3800 to 3900, with instances of a price of Rs 4,000 also being quoted, say sources in this business.
Arrivals have slowed down in local markets and there are reports of similar stances by farmers in Gujarat too, which has led to the price rise in the last few days.
Three holidays in a row at the Pandharkavda market further worsened the situation for traders. It was an extended weekend at this largest market for cotton in the region, with Moharram holiday on Tuesday, trading was shut even on Monday.
Going by its cultivation area and the number of people whose lives are hinged to it, cotton is now the biggest cash crop of the state. It was sugarcane that till now enjoyed political patronage because the area where it is grown (Western Maharashtra) dominates the state's power politics. But of late, farmers of the otherwise backward Vidarbha and Marathwada regions, where cotton is the main cash crop, have become more vociferous. Looking to their sheer numbers - about three million families - the government of the day knows it can ill afford to ignore their grievances.
That is the reason the forthcoming winter session of the state legislature has become the most anticipated even in the cotton calendar. Farmers have decided to wait till the winter session during which they hope that the government may increase the minimum support price (MSP) to at least Rs 4250 a quintal.
CM Prithviraj Chavan while citing the election code of conduct force for the municipal council polls for his inability to make any announcement, has hinted that a relief package could be expected during the winter session. He reiterated this during his day-long poll campaign tour of Vidarbha on Sunday.
"We are now waiting for the CM's package," said Jeetu Patil, a farmer from the outskirts of the city. "I have not sold the crop as the open market price is low and would not meet my production costs," said Patel. He is hoping at least a hike of Rs 1000 in the MSP from the current Rs 3300. There are reports of a one day token strike by farmers in Gujarat also which has left the traders fuming. "It is sheer pressure tactics, which is not going to work as the farmers' holding capacity will exhaust soon. Each of the farmers is sitting on huge stocks, with many it is almost the entire produce. The rates are expected to recede soon," said an exporter from Mumbai.
"Farmers are sitting on cotton stocks. Less than 30% of the crop has reached the markets," said farm activist Kishore Tiwari. He has been demanding a MSP of Rs 6000. According to him the governments of Gujarat, Andhra Pradesh, Punjab and Karnataka - states where cotton is grown - have also demanded a hike. The CACP (commission for agricultural costs and prices) under pressure from the seven states had almost agreed for a MSP of Rs 4250. But it was the Union agriculture ministry which shot down the proposal.
The Sunday incident when a cotton grower tried to end his life in the presence of Chavan who was at a campaign rally at Dhamangaon Railway and rising protests from not only the opposition parties but also ruling party leaders who are keen on a bailout package for cotton growers has taken the cotton pricing issue into realms of electoral politics. If the farmer is unhappy he may not vote for the Congress, NCP in the municipal council and corporation elections.
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