Cotton procurement belies estimates

The Maharashtra Cotton Growers' Marketing Federation, a Government of Maharashtra agency, has managed to purchase just 761 quintals of cotton since the procurement began on November 10.

Across the cotton-growing regions of Vidarbha, Marathwada, and Khandesh, the 80 procurement centres opened by the Federation have evoked an indifferent response from farmers.

Of these centres, 52 are functioning in Vidarbha, which accounts for roughly 65 per cent of the total state yield. Ironically, marketing minister Harshvardhan Patil has envisaged a purchase of at least 50 lakh quintals by the Federation as against the total estimated yield of 125 lakh quintals in the current season.

G H Vairale, general manager, Cotton Growers Marketing Federation, said the crop inflow has been sluggish at all the 80 procurement centres. "We have recorded a modest procurement of 761 quintals of cotton in 20 days at 80 centres. There has been a sluggish response from the cotton growers till now," Vairale said.

Zonal manager of the Federation K D Ghatole, who looks after procurement in Nagpur and Wardha districts, said the purchase centres operating in both the districts have procured 64 quintals and 158 quintals, respectively, till December 1.

In the same period, traders have been able to purchase a major chunk of the crop. Price is the catch here as the Federation has announced a rate of Rs 2500 per quintal (depending upon the crop variety) while traders are offering a little more.

What has virtually driven the cotton growers away from the Federation is the modality of payment. First, the Federation does not pay Rs 2500 per quintal to all varieties of cotton. Second, it does not pay Rs 2,500 in one go.

While the minimum support price of Rs 1750 per quintal fixed by the Union government is paid right at the time of procurement, the advance bonus is scheduled to be released in two instalments. As against this, traders pay entire amount to cotton growers right at the time of purchase.

Indirectly though, Federation officials are also attributing the indifferent response by the farmers to this queer mode of payment. "The government has not yet intimated us in writing about the modalities of advance bonus. This has become a sort of hindrance. The announcement is expected around the winter session," Vairale said.

Interestingly, the Federation is not drawing large quantity of cotton even when the traders have lowered the price. Procurement in private market opened at a handsome Rs 2700 plus per quintal around Diwali but it has now slipped to Rs 2400-2450. But the cotton growers are not going in for the Federation offer because Rs 2500 in three instalments is no attractive offer as compared to Rs 2400 in one go.