Business Standard

AP cotton farmers cheer as prices rise

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Chandrasekhar Guntur
Though the recent heavy rains played a spoilsport and shattered the hopes of the cotton farmers in Guntur, Prakasam and Krishna districts, some quality cotton varieties came to their rescue, with the private buyers offering them high remunerative prices for these varieties.
Cotton varieties like MCU-5, Bunny and Brahma are now on hectic sale in the open market, and the best quality MCU-5 kappas (with seed 32, 33 mm) are fetching Rs 23,00-24,00 a quintal to the farmers.
While MCU-5 seedless variety is fetching Rs 25,000-26,000 a candy (355 kg), Bunny and Brahma (29, 30, 31 mm) cottons are being sold out for Rs 2,300 a quintal.
At the onset of 2002-03 season, kappas of MCU-5, Bunny and Brahma variety were purchased at Rs 1,800 a quintal, and the price rose to Rs 2,300 by the end of the season.
It is expected that the rate would touch Rs 2,800 by the end of this season. But the Telangana farmers are now itself earning Rs 2,500-Rs 2,600 a quintal for top class cotton.
Rain kappas, cowdy kappas, kappas with moisture and other inferior cotton varieties disappointed the farmers as the prices were less than the minimum support price of Rs 1,975.
"The rains raised the farmers' hopes of higher yield in the coming days. If the crop that is being brought to the market is not up to the ideal market standards, the farmers are bound to feel let down," said Kandimalla Nageswara Rao, the secretary of Cotton Association of India.
The farmers of Telangana region are reaping maximum profits out of cotton sales at the yards in Warangal, Khammam, Sadnagar, Bainsa and Maddunur.
As lint (seedless cotton) realisation is found to be maximum in their crop, they have earned even Rs 2,700 a quintal of exceptionally best quality cotton.
Consequently, traders of coastal Andhra are also rushing to the Telangana market yards to purchase kappas on a large scale.
Somehow, the farmers of coastal Andhra have shunned the market yards. Most of them are cynical about the yard and are preferring sale of crop at their houses.
"There is no safety for the crop in the yards as there are no basic amenities in them. Above all, we are not sure of getting the right price. So instead of incurring unbearable transport charges and other expenses, we are selling our produce at home," said some Andhra farmers.
On the contrary, the Telangana farmers bring their cotton bales and store them in the yard without fear of theft exploitation.
The revised estimates put the cotton cultivation area at 19,65,000 acres in the state as against last year's 17,23,593 acres.
The harvest is expected to be around 26 lakh bales. Twelve lakh bales have already arrived at the market and 9 lakh bales are so far pressed.
Cotton is being reaped in 3,67,062 acres in Guntur district (2,51,010 acres during 2002-03), 90,187 acres in Krishna district (79,818 acres during 2002-03), and 69,915 acres in Prakasam district (48,237 acres during 2002-03). The harvest is likely to be around seven lakh bales in these districts.
Eleven important centres in the state - Guntur, Bainsa, Jammigunta, Warangal, Nirmal, Maddunur, Shadnagar, Nandyal, Adoni, Tadipatri and Poddutur "" serve the cotton farmers of Orissa, Maharastra and Karnataka also.
Cotton from these states reach the ginning mills at these 11 centres before being readied for domestic consumption or exports. Thirty four of these prominent mills are located in the coastal Andhra, mostly in Guntur district.


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First Published: Jan 05 2004 | 12:00 AM IST

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