Cotton glut drags rates down

  • | Saturday | 10th November, 2018

Lint is prepared by ginning process of raw cotton, which is calculated at 1/3rd or 34% of total raw cotton. However, now as the prices are near MSP, farmers don’t have to face big losses. BATHINDA: This season, the markets of Punjab saw the arrival of a relatively higher quantity of raw cotton compared with the previous year, despite lower acreage. They had not preferred to sell raw cotton through CCI when it was being sold at nearly Rs 5,000 per quintal”. CCI had procured the crop from the Punjab farmers in 2014-15.Cotton has been sown over 2.84 lakh hectares in Punjab.

BATHINDA: This season, the markets of Punjab saw the arrival of a relatively higher quantity of raw cotton compared with the previous year, despite lower acreage. A total of 2,45,500 bales (one bale=170kg) arrived in the mandis till November 8 whereas in 2017, 2,35,000 bales had arrived during the corresponding period.Central government’s agency, Cotton Corporation of India (CCI), is yet to make any purchases even though the crop is fetching rates less than the minimum support price (MSP). The prevailing rates of raw cotton are in the range of Rs 5,250 - Rs 5,300 per quintal whereas MSP for the 27.5-28.5mm long staple (grown in Punjab) is Rs 5,350 per quintal.The crop fetched less than Rs 5,000 per quintal in early October. CCI had then announced to make purchases directly from farmers without any arhtiya (commission agent). However, farmers were unwilling to spoil their relations with the commission agents and opted to sell their produce through them thus leaving no space for CCI to intervene and stabilise the market rates.“I had brought my produce to the market on Thursday, which sold today at Rs 5,290 per quintal. It is not much lower than the MSP. As I wanted my crop to be sold through an arhtiya, I did not approach the CCI,” said farmer Balwant Singh of Sangat village who cultivated cotton in over 3.5 acres. Farmers Amrik Singh and Manjinder Singh of Jai Singh Wala village in Bathinda also sold their crop on Friday through arhtiyas.After four years, cotton is being sold at rates lower than the MSP. During the past four seasons, cotton had been sold at rates higher than MSP. CCI had procured the crop from the Punjab farmers in 2014-15.Cotton has been sown over 2.84 lakh hectares in Punjab. Bathinda district tops the list with 1.10 lakh hectares under the crop. Last year, the fibre crop was sown over 2.91 lakh hectares.Experts expect the yield this season to be better than the last year at nearly 770kg lint per hectare, up from 750 kilogram per hectare in the 2017-18. Lint is prepared by ginning process of raw cotton, which is calculated at 1/3rd or 34% of total raw cotton. Production of cotton this season is estimated to be at 12 lakh bales.A senior official of CCI said, “We are ready to make purchases but no one comes to us. However, now as the prices are near MSP, farmers don’t have to face big losses. They had not preferred to sell raw cotton through CCI when it was being sold at nearly Rs 5,000 per quintal”.

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