S. HARPAL SINGH
Due to increased investment because of dry spell, prices may not be remunerative
The woes of farmers, chiefly cotton farmers, are likely to continue all through the season despite the crop-saving spell of rainfall during the last 7 or 8 days. The prolonged dry spell having increased investment in sowing thrice and proportionate increase in ΅personalΆ expenditure, there are enough indications that the price of cotton is not exactly going to be remunerative.
Largest area
Adilabad is the largest cotton producing area in Telangana, the cash crop being cultivated normally in over 3.25 lakh hectares (currently about 2.25 lakh hectares), and any downward fluctuation in either yield or price will have a tremendous impact on the 3 lakh plus small and marginal farmers. A simultaneous and equally forceful impact will also jolt the huge cotton processing industry in the district which has an estimated turnover of about Rs. 8,000 crore per year.
The season has been pushed back by about 40 days for lack of rainfall, which means the produce of a majority of cotton farmers will arrive in the markets only in late November of December. Add to it the average increase of about Rs. 2,000 in investment per acre on account of re-sowing and another Rs. 2,000 on account of interest on private loans for the dry period, the scenario becomes grimmer.
Average yield
The overall expenditure for cultivating cotton in an acre will rise to between Rs. 16,000 and Rs. 18,000, according to observers. The yield, again owing to weather conditions, is expected to be in the range of 4 to 6 quintals on an average for every acre which means the price of cotton later in the season has to be quite high so that the poor farmers are bailed out of their pathetic situation.
Forward trading
According to sources, cotton traders have begun forward trading, involving sale of cotton bales in December this year.
The price of a candy of cotton bale in such trading is reported to be about Rs. 42,000 on an average which is not very encouraging given the current situation.
“Going by the rate of cotton bale in forward trading, the price of cotton will be around the minimum support price of Rs. 4,050 per quintal when the produce arrives in the markets,” opines Ch. Narsaiah, a senior cotton commission agent in Adilabad agriculture market.
“There is need for the government to review the situation and fix higher MSP for cotton, at least Rs. 6,500 per quintal, in order to prevent farmers from sinking into deeper morass,” suggests senior Telangana Rashtra Samiti farmer leader B. Goverdhan Reddy.
