The Cotton Corporation of India (CCI) has so far purchased 15.5 million quintal cotton crop in Andhra Pradesh. Of this, 6 million quintal was brought in by the Guntur branch comprising Guntur, Prakasam, Krishna and Khammam districts. CCI branch manager P A Ghate said the corporation paid farmers an average price of Rs 2,940 per quintal as against the minimum support price of Rs 3,050.
Andhra Pradesh produced 5.3 million bales (20 per cent of the country’s crop) this season of which, 4.6 million bales had so far arrived in the market. About 3.5 million bales had already been ginned, he said.
Farmers who brought above 28 mm cotton received Rs 3,100 per quintal and for 28 mm and below they got Rs 2,750 per quintal. Last year, they were paid Rs 2,100 and Rs 1,500-1,800 per quintal respectively.
Spinners have so far not received last year’s incentive to be paid under a central government scheme. Besides, their capital was blocked and they are finding it difficult to buy cotton.
Last year, about 70 spinning mills in Guntur district worked three shifts and this year they are working for only one shift. Adding to their woes is power cut with the southern discom asking the spinning industry to observe two days a week power holiday.
Ginners have a different problem. Venkateswara Rao, a ginner, said there were no private traders to sell them raw cotton. Of the 400 ginning mills in the district, about 80 have been hired by the CCI. Even those ginning for the CCI get Rs 2.80 per kg, which is a loss for them. If they are paid Rs 3.20 per kg, it would leave them a minimum margin.
However, they have become hired mills just for survival.