The Cotton Corporation of India (CCI), which operates 33 purchase centres in Andhra Pradesh, has emerged as the sole buyer of fresh cotton crop in the state and has so far purchased 4.1 million quintal from farmers.
The CCI bought 1.5 million quintal from Guntur district, 1.6 million quintal from Warangal district and 1.1 million quintal from Adilabad district.
However, the corporation had made it clear that it would buy crop only up to 12 per cent moisture. “We have to stick to the guidelines fixed for us by the Centre,” said CCI branch manager PA Ghate.
The two recent cyclones drenched the crop that was about to be harvested in thousands of hectares. Even ginners have opted for the CCI as it pays them Rs 2.80 per kg of cotton. Private traders, on the other hand, pay only Rs 2.25 per kg.
For cotton with 8 per cent moisture, the CCI pays Rs 3,000 per quintal (MSP). Farmers get Rs 30 extra per quintal for cotton with 7 per cent moisture and Rs 30 less for cotton with every 1 per cent increase in moisture above 8 per cent. Ghate said the CCI was expecting 5 million bales into the markets.
Stiff competition from the CCI, lack of exports as well as quality cotton and high MSP have made spinners to stop buying cotton from traders. Consequently, cotton sales in the open market have come to a standstill and two ginning mills have already been closed in Guntur.
Cottonseed rate has come down from Rs 1,200 to Rs 1,000 per quintal, Ghate said.
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G Punnaiah Chowdry, president of AP Cotton Association (Apcot), said cotton crop this year would be around 4.5 million bales as against the initial projection of 6.4 million bales.
Farmers, who sowed cotton on 3.2 million acres, now hope to harvest 5-6 quintal per acre, which is 2 kg less than the usual harvest.