CCI to open 33 procurement centres to purchase cotton from farmers

Vijayawada: Notwithstanding the growing demand in global market, cotton prices are hovering below the Minimum Support Price (MSP) in the state due to extensive damage of crop during the recent rains and floods. Private players are trying to exploit the situation citing the ‘inferior' quality of stock. Farmers, who made massive gains in the last four years, are gripped with panic to sell due to various factors including discolour of white kapas (raw cotton), reduction in length of the staple and presence of moisture. Taking farmers' concerns with a serious note, the Centre directed the Cotton Corporation of India (CCI) to swing into action.CCI, which was left without any work in the last four years due to the high prices in the open market, has decided to open 33 procurement centres to purchase cotton from the farmers. The CCI had notified several ginning mills as its procurement centres across the state and decided to open the new purchase centres in the local agriculture market yards where ginning mills were not available. The Centre has declared Rs.7,521 per quintal as Minimum Support Price (MSP). The Centre has increased the MSP by Rs 500 per quintal over the last year's MSP.Cotton fetched decent profits for farmers in the last four years when the prices hovered around Rs.15,000-20, 000 per quintal. The increased demand in global market and crop loss in the major cotton producing nation has helped the farmers make huge gains. However, the situation has suddenly reversed during the current season chiefly due to the heavy rains."In fact, there is decent demand in the international market and also there is spike in domestic consumption. However, the quality of the stock might put farmers in a fix," said an exporter.The Cotton Corporation of India has also issued detailed guidelines for purchase of stock from farmers. The officials requested the farmers not to bring the stock by packing in plastic/gunny bags. They wanted the farmers to bring loose cotton so that there will be less moisture helping them fetch prescribed MSP. The CCI buyers will fix the price based on the length and moisture in the staple.
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