The continuously changing policy of the government regarding cotton export may see farmers shift from sowing cotton to other crops in the coming season. Frequent changes (policy revised seven times since May 2010) and their consequent impact on prices in the domestic market have put farmers and ginners in a tizzy.
Maharashtra and Gujarat, the major producing states, may register the highest fall in production. These two states have been witnessing lacklustre trade since the past few days. Ginning mills are operating at 25-30 per cent of capacity in Gujarat and are almost non-functional in the Vidharbha belt of Maharashtra. Due to this, farmers are mulling crops other than cotton, depending on the climate and topography of the region, for the next kharif season.
The price of raw cotton (Shankar-6) fell in many centres to Rs 3,350 a quintal — nudging the the minimum support price of Rs 3,000 a quintal.
A ginner from the Yavatmal district of Maharashtra told Business Standard the high cost of cotton seeds (Rs 1,200 for 450 g) and the fluctuating price of cotton may force farmers to switch to crops like sugarcane, jowar, moong and soybean.
In Vidarbha, cotton is the major crop. According to farmers, soybean and jowar can be the alternative crops. Cotton acreage is likely to fall 30 per cent in the region, as the land is not very fertile and there is less potential for crops other than cotton.
In the Marathwada belt, sugarcane, soybean and moong can be grown in addition to cotton. Farmers anticipate a substantial fall in cotton acreage as the land is suitable for the other crops as well.
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Besides high cost of seeds, rising labour cost is also a big hurdle. According to Krishan Lal Swami of Siddhi Vinayak Cottsin, Ralegaon, the cost of plucking cotton flower is too high due to labour scarcity in the hinterland. “Labour charges are up to Rs 400 a day, unviable if we do not get consistent buyers,” he said. As small farmers and ginners don’t have holding capacity, the frequent changes in demand and supply makes the business unremunerative, Swami added.
Farmers in Punjab may shift more land to paddy this season, said Jagtar Singh Mehma, a Bhatinda-based farmer. In Haryana and Rajasthan, guar is catching the fancy of farmers. The return on guar increased five-fold in a year from Rs 4,500 a quintal last year to Rs 23,000 a quintal this year.
Sushil Mittal, president of the Haryana Cotton Ginners’ Association, said there may be a diversion of about 70 per cent area from cotton to guar in Rajasthan and about 30 per cent in Haryana.
“Guar seeds are cheaper and irrigation and labour requirement is less, so it is more viable for farmers in this belt,” he added. Area under cotton rose by over 500,000 hectares last year, from 1.44 million hectares in 2009-10, owing to unprecedented demand for cotton and lucrative prices.