Cotton farmers brace for procurement rush as mandi prices lag MSP

As Telangana’s cotton marketing season nears, farmers are preparing for a rush at procurement centres due to mandi prices falling well below the MSP. With over 6 lakh farmers affected, the state has expanded procurement facilities and introduced digital tools like the Kapas Kisan App to manage the surge. However, concerns persist over payment delays, quality rejections, and private traders exploiting long queues.

Hyderabad: With the 2025-26 cotton marketing season set to begin in mid-October, Telangana’s farmers are bracing for a rush at government procurement centres, as mandi prices continue to fall far below the Minimum Support Price (MSP). The price gap has raised concerns of bottlenecks and delayed payments for nearly 6 lakh farmers across districts such as Warangal, Adilabad and Nalgonda.

Currently, mandi prices range between Rs. 6,333 and Rs. 6,805 per quintal in markets like Jammikunta and Bhainsa, up to Rs. 1,435 below the MSP of Rs. 7,710 for medium-staple cotton, which itself was increased by 8.27 per cent from last year. Long-staple varieties are faring worse, with the MSP fixed at Rs. 8,110 but mandi prices trailing significantly lower.

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At a recent meeting, state officials and Cotton Corporation of India (CCI) representatives flagged the Rs. 1,099 MSP-market gap as a major concern and urged aggressive procurement to protect farmers from distress sales. Telangana expects 53–55 lakh bales this season, with potential to touch 70 lakh bales under favourable conditions, from 18.51 lakh hectares under cotton cultivation.

To manage the expected surge, procurement centres have been increased from 110 to 122, with a new facility at Konaraopet in Rajanna Sircilla. Telangana had led national procurement last season with 40 lakh bales handled across 508 centres, but the high arrivals anticipated this year could put severe pressure on the systems.

CCI Chairman Lalit Kumar Gupta said the agency aimed to procure 50–70 lakh bales nationally but warned that peak arrivals could overwhelm capacity, as witnessed last year. Fears persist that private traders may exploit long queues at centres to purchase cotton at cheaper prices.

In response, the state has introduced the Kapas Kisan App for slot bookings, Aadhaar-linked payments, and monitoring committees at local centres to ensure fair quality checks and accurate weights. A toll-free helpline (1800-599-5779), WhatsApp support (88972-81111) and a new Command Control Room at the Directorate will provide real-time grievance redressal.

Globally, a 1.3 per cent dip in cotton production to 117.2 million bales, coupled with oversupply from Brazil’s exports, has kept international prices below production costs, further depressing Telangana’s mandi rates.

Officials caution that 80–90 per cent of Telangana’s output may flow to CCI centres, risking delays in payments and quality rejections. A trader from Nalgonda warned, “Low prices would mean procurement chaos. Small farmers could lose thousands per acre without swift CCI action.”