Cotton growers getting restive in Telangana

Despite the CCI announcing a 7% hike in the MSP this year, with rates set as Rs 7,121 per quintal for medium staple cotton and Rs 7,521 per quintal for long staple cotton, farmers are facing major challenges in marketing their produce

Hyderabad: The cotton outlook for the 2024-25 season that has just started unfolding in Telangana reveals a mixed scenario marked by significant challenges. The total area under cotton cultivation has decreased to 44 lakh acres from last year’s 55 lakh acres.

The Cotton Corporation of India (CCI) procured up to 12.5 lakh metric tonnes, last year while private traders have procured 16 lakh metric tonnes. Much of the cotton produce has been moved to neighboring markets in Karnataka, Andhra Pradesh, and Maharashtra, with some farmers even transporting their stock to Ahmedabad for better prices.

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Despite the CCI announcing a 7% hike in the MSP this year, with rates set as Rs 7,121 per quintal for medium staple cotton and Rs 7,521 per quintal for long staple cotton, farmers are facing major challenges in marketing their produce.

The CCI has been rejecting cotton with moisture content above 12%, forcing farmers to sell to private traders at lower prices, around Rs 6,660 per quintal.

Nearly five percent of the crop area was affected by the September rains, which subsequently led to pest infestations, including the spotted bollworm and pink bollworm, causing substantial yield losses. Farmers in six districts, including Suryapet, Khammam, and Mahabubabad, are grappling with the adverse effects of these pests.

Last year, the crop covered 55 lakh acres, yielding an overall production of 45 lakh metric tonnes. However, this year, the projected output is expected to be around 35 lakh metric tonnes. The market price for cotton has been fluctuating around Rs 7,000 per quintal.

The rains have caused high moisture content in the cotton, further complicating the situation. Farmers are facing difficulties as their produce is being priced lower than the MSP due to excess moisture levels. Discrepancies in market prices have led to unrest among farmers, with private traders offering lower prices compared to the CCI rates.

In addition to these challenges, the Cotton Association of India (CAI) has projected a 7 per cent decline in cotton output this year due to reduced acreage and adverse weather conditions. The average yield this year is expected to be around 8 to 9 quintals per acre, compared to up to 12 quintals per acre in some pockets last year.

The rain and pest impact has forced some farmers to destroy the crop after the first picking and switch to maize cultivation. As the situation unfolds, the CCI is prepared to step in across major cotton-producing districts to ensure farmers receive fair prices, but farmers complain that a robust support system for the agricultural sector is still missing.