Eighty per cent cotton purchased so far in state sold below MSP: Punjab government

Almost 80 per cent of all cotton purchased so far in Punjab has been sold below the MSP, reveals data from the state government.  Of the 6,078 quintals purchased in the Fazilka, Bathinda, Mansa, and Muktsar districts, 4,867 quintals were bought below the MSP, with minimum rates ranging from Rs 4,500 to Rs 5,900 per quintal.

The main reason for the low prices is the delay in purchase of the crop by government procurement agency, the Cotton Corporation of India (CCI). To date, all cotton has been bought by private players, including cotton ginners and traders. In total, 11,218 quintals of cotton have arrived in the state's markets.

This year, cotton was cultivated on 1.19 lakh hectare, but the floods in August and September damaged crops on 12,100 hectare. Even in unaffected areas, the cotton has a high moisture content.

According to Bhagirath Chaudhary, South Asia Biotechnology Centre, floods reduced the strength of the cotton crop and increased its moisture content to above the prescribed 8 per cent limit. This has resulted in private traders paying very low prices to the growers, he explains. The Centre has urged CCI to start making purchases to help alleviate the growers' economic crisis, he informs.

Balkar Singh, Vice President, BKU Ekta Dakaunda, a farmer’s union says, cotton growers protested in the Mansa market after private buyers offered prices ranging from Rs 5,300 to Rs 6,800 per quintal. He urged the government to meet the farmers' demand for a guaranteed purchase of crops at the MSP. Rajnish Jain, Commission Agent, Maur, notes, traders were unwilling to pay higher prices because the untimely rain resulted in a high moisture content in the cotton.