NAGPUR: A large number of cotton cultivators in the state are holding on to their produce hoping for a better price. A colder winter this year has only helped them as it enables retaining of the moisture content of the raw cotton. However, the market is not showing any sign of hope for them. With poor internal and export demand this year, chances of farmers getting anything more than the current rate of Rs3900 a quintal look slim.
"Only 35% of the cotton harvest may have reached the market till date this season. Big farmers with larger land holding and capacity to hold on to stocks are holding on to stocks. Yet, chances of open market rates going up look remote," said N P Hirani, chairman, Maharashtra State Cotton Growers Marketing Federation.
Normally over 50 to 60% of the raw cotton produce reaches markets by this time of the year. This year delayed rains had led to late sowing and harvesting too got delayed by a couple of weeks. To add to the growers' woes, the market conditions were listless. "Rates in open market are around the minimum support price (MSP) of Rs3900 fixed by the government," said Hirani.
Procurement began after Diwali festival but arrivals remained poor. Till date, private traders have done bulk of buying having procured 20 lakh quintals. The Cotton Corporation of India has bought around 2 lakh quintals. The federation, which has opened its purchase centres at district headquarters, has barely procured 10,000 quintals, according to Hirani.
"The cotton grower is in big trouble once again. While there is a dip of 20% in produce compared to last year, the problem is low rates. The farmer can hardly recover his input costs which is about Rs5,500 an acre," lamented Hirani. "The demand is poor in domestic as well in global markets. China, major importer of Indian cotton, has cut by half the quantity it normally buys from us," said Hirani.
"So most farmers will have to offload produce by next month or so. Normally, by March the rise in day temperature results in loss of moisture of raw cotton (normal moisture is 8.5%). This loss of moisture reduces the weight. So farmers have to sell before that," said Hirani. He is of the firm opinion that looking at the huge losses suffered by the farmers, the state government should declare a per acre compensation for cotton growers. "If the state does not come to rescue, growers will be in dire straits," he said.
