Cotton exports cheer ryots

Cotton exports from India are on the rise. About 75,000 bales (bale 170 kg) of Andhra Pradesh Bunny and Brahma cotton varieties, worth Rs 75 crore, have been exported to Bangladesh during this fiscal (2004-05) and importers from Pakistan, Indonesia and China are showing a keen interest in these varieties.

Cotton exports from India have so far touched 3.5 lakh bales, which include Bunny, Brahma and Shankar-4 (Gujarat) varieties. And among all this, the Cotton Corporation of India (CCI) has emerged as the major player with its exports touching 2.5 lakh bales.

Speaking to Business Standard, T Bhanoji Rao, general manager, Cotton Corporation of India, said, "The CCI bailed out farmers in Andhra Pradesh this season and purchased 12 lakh bales (62 lakh quintal), paying them Rs 1,200 crore as per the minimum support price (Rs 2,010 per quintal) through its 65 centres.

Last year, the CCI purchased 23 lakh quintals from AP farmers, paying them Rs 400 crore. The CCI, thus, almost trebled its purchases this year. While farmers this season received the highest price, Rs 2,070-2,150, per quintal for quality cotton and the lowest price of Rs 1,700-1,750 per quintal for poor quality produce, they were paid the highest price of Rs 2,700 in 2003-04.

He said trading circles had put this year's cotton harvest at 35 lakh bales in AP out of which the CCI and the traders had already bought 31 lakh bales.

The remaining 4 lakh bales, called the last pickings, would soon arrive into the market, as the season would continue for another six months. The Cotton Advisory Board is yet to revise its initial estimation of AP crop size of 33 lakh bales.

He said excess production, the reason for crash in prices, had been reported not only in Andhra Pradesh but also all over the country (25.4 million tonnes "" 23 per cent increase) this year.

Prices in the international market have also dived due to good crop in the US, China and other countries. Low yarn rates have also contributed to low prices in the country and AP.

According to Andhra Pradesh Cotton Association, farmers have incurred losses this season as they earned Rs 10,000 less per acre than what they did last year when they got the highest price of Rs 2,900 per quintal.

The crop brought to the market was of inferior quality when compared to last year's crop. This as mainly due to inadequate rains. An interesting feature of this cotton season is that Bt cotton has fetched farmers the lowest price of Rs 1,300-1,500 per quintal.

Meanwhile, the cottons mills here earned Rs 15,000 per candy (355 kg) of fully pressed (FP) Bunny/Brahma 27/28 mm cotton and Rs 17,000/17,500 per candy of 29/30 mm FP Bunny/Brahma varieties. FP MCU-5 (31 mm) and MCU-5 (32 mm) fetched them Rs 18,500 and Rs 20,000 per candy respectively.