Karimnagar: Farmers in Karimnagar district will spend about Rs 330 crore by the time their cotton crop is ready to be harvested. At the half-way mark, the farmers have invested Rs 129.58 crore.
They may not be able to recover their money if the predictions of a US-China trade war pushing down cotton prices comes true.
Farmers have sowed cotton on 1,07,987 acres against the norm of 1,27,420 acres. With all inputs turning costlier, the investment per acre ranges between Rs 30,000 and Rs 35,000.
The farmers expect an average of eight quintals of cotton from each acre. In the previous Rabi season, the Cotton Corporation of India purchased cotton from farmers by fixing minimum support price at Rs 5,350 per quintal for high quality cotton, whereas private agencies offered Rs 4,500. Officials are unable to estimate the output this time as well as the extent of price deterioration in the global market.
Mr G. Venkat Reddy, a Rythu Sangham leader, said the trade war had opened a window of opportunity for India to promote cotton growers and exporters. Growers have to be motivated to meet the domestic demand, he said. If farmers face the risk of price downturn, the government needs to take steps like building confidence among the cotton growers and fix remunerative support price as well as provide support packages....