Punjab cotton farmers count on good season amid rise in demand
Amid growing demand for raw cotton in the domestic and international yarn industry, the Cotton Corporation of India (CCI) and traders hope that this kharif season, more private players will buy the produce above its Minimum Support Price (MSP).
“In its market assessment for 2021-22, CCI hopes that private players will buy the entire cotton production above the MSP. The current market trend is very remunerative for farmers,” said CCI assistant general manager and Punjab in-charge Neeraj Kumar, adding that this time, the central agency was unlikely to play any major role in cotton purchase, but it will ensure its presence in the market to stabilise pricing. The CCI buys cotton only if private buyers pay farmers less than the MSP. Of 55 lakh quintal produced last season, CCI procured a record 27 lakh quintal on MSP in the state.
Cotton harvesting in the state is expected to commence from September 15.
In the last fiscal (2020-21), the MSP for cotton varieties grown in Punjab was Rs 5,725 per quintal. For this kharif season, the Centre has enhanced MSP on cotton by Rs 200 onwards on different staple sizes. A notification of MSP on long-medium varieties sown in Punjab has not been issued yet.
Cotton is the economic lifeline of farmers in the semi-arid belt of south Malwa as the crop is sown in eight districts, mainly in Fazilka, Mansa, Bathinda and Muktsar.
With over 3 lakh hectare under area cotton, southern Punjab has recorded an increase of 17% than 2020 when cotton was sown on 2.5 lakh hectare.
Director of Indian Cotton Association Limited, a body of those dealing in export, spinning, ginning of cotton, Rakesh Rathi said the situation in the international and domestic market indicates that raw cotton may fetch farmers Rs 500-700 per quintal above the MSP.
“Due to the Covid-19 pandemic, the textile industry was among the worst-hit sectors in 2020. Later, demand for cotton or yarn in the market increased. The CCI played an important role in stocking up after paying a better price to cotton growers. This time, private players may buy the entire stock at competitive rates to meet demand,” said Rathi.
A progressive farmer from Bathinda’s Bajak village Baldev Singh said like last season, the cotton-growing area did not witness any major pest attack and an average yield of 10 quintal per acre is expected.