Private traders exploit Adilabad cotton farmers amid CCI procurement delay

Private traders are allegedly exploiting cotton farmers across erstwhile Adilabad district by offering prices below the CCI's minimum support price and imposing deductions. Farmers blame delayed procurement and weak enforcement, and have urged officials to raid unauthorised procurement centres.

Adilabad: Private traders are fleecing cotton farmers who are already reeling under a crisis, with the Cotton Corporation of India (CCI) delaying the commencement of procurement on a full-fledged scale in the district and officials failing to enforce regulations.

As per data provided by agriculture officials, cotton was cultivated on 11.50 lakh acres across the erstwhile Adilabad district and the estimated yield was 90 lakh quintals, provided the climate remained conducive. However, farmers claimed that the yield declined significantly due to scanty rainfall triggered by the El Nino pattern, resulting in huge losses.

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On October 22, the CCI commenced procurement by offering a minimum support price (MSP) of Rs 8,667 per quintal for cotton with a moisture content of eight per cent. CCI officials said that 33 ginning mills had been identified and 18 procurement centres had been set up to purchase cotton across Adilabad district alone. Arrangements were also made in Nirmal, Kumram Bheem Asifabad and Mancherial districts.

However, owners of kirana stores and seed and fertiliser traders launched cotton procurement without obtaining permission from officials in remote areas and tribal-dominated habitations. They are openly purchasing cotton by erecting makeshift tents at junctions and crossroads in villages. They are reportedly quoting around Rs 300 per quintal less than the price fixed by the CCI, citing higher moisture content, thereby causing losses to farmers.

Similarly, the unauthorised traders are accused of imposing deductions in the name of hamali charges and additional deductions for immediate cash payments. Some of them are also deducting loans given to farmers at exorbitant interest rates. Generally, the farming community is forced to approach private moneylenders in the absence of input assistance (Rythu Bandhu) from the government, and these usurious elements lend money at high interest rates as short-term loans. Illegal trading can be seen across the four districts, particularly in Kumram Bheem Asifabad.

The farmers regretted that they were being forced to sell their cotton produce to traders due to the delay in the CCI commencing procurement on a full-fledged scale. They opined that the delay had provided an opportunity for traders to exploit cotton growers. They urged officials to check the menace by conducting raids on illegal procurement centres in rural areas.

When asked, District Marketing Officer Gajanand said that traders who obtained licences from local agriculture marketing committees were authorised to trade in cotton. He explained that fines would be imposed on illegal traders, besides their weighing machines being seized by the Legal Metrology Department. He added that the erstwhile Adilabad district had around 550 licensed traders.

Area under cotton cultivation: 11.50 lakh acres

Estimated procurement: 90 lakh quintals

Yield after decline due to El Nino: 50 lakh quintals

MSP fixed by CCI: Rs 8,667 per quintal

Ginning mills identified by CCI: 33

Procurement centres: 18

Toll-free numbers: 1800 599 5779, 88972 81111

Authorised traders: 550