Nation Current Affairs 27 Aug 2019 US-China ‘war& ...

US-China ‘war’ hits Telangana cotton: Traders set to make a killing in Adilabad

DECCAN CHRONICLE. | PILLALAMARRI SRINIVAS
Published Aug 27, 2019, 1:44 am IST
Updated Aug 27, 2019, 1:44 am IST
Crash in global market prices forces local farmers to cut down production.
In this file photo a farmer sprays pesticide on his cotton crop in Adilabad mandal.
 In this file photo a farmer sprays pesticide on his cotton crop in Adilabad mandal.

Adilabad: It seems there is no good cotton crop in this kharif season and price of cotton too has fallen. Cotton farmers will be hit again despite the good rains, which however came at the wrong time.

The delay in the rains in the beginning of the season, and then untimely rains later on, affected the growth of the cotton plant and resulted in fewer bolls than last year.

 

“The cotton crop is not good this kharif when compared to last year and cotton yield may be low this season when compared to last year,” said cotton farmer Jangil Dashrath of Ichoda.

Private cotton traders will turn this to their advantage. They did this in last year’s kharif too, offering a lower price to farmers, saying that cotton was not fetching a good price in the international market.

The Cotton Corporation of India’s (CCI) intervention will save the cotton farmers from suffering losses due to the fall in the cotton prices in the international market, which is due to the ongoing trade war between China and USA among other factors.

Private cotton traders may not be interested in buying cotton from the farmers given the low price for it.

Cotton farmers want the central government to increase the minimum support price or MSP for the cotton crop, which is currently Rs 5,450 per quintal.

It is said that there is a 29 per cent fall in the price of cotton in the international market.

Old Adilabad used to be the largest cotton market in the Asian continent and transactions of Rs 10,000 crore used to take place every year in the past in the erstwhile Adilabad district.

Cotton was cultivated on nine lakh acres in the old Adilabad district — three lakh acres in Adilabad district alone. This year investment costs increased due to the prolonged dry spell in the beginning of the kharif season.

CCI authorities do not enter into commercial operations through its centres. Even if it does enter, it is of little help as it has imposed many restrictions such as on moisture content allowed in the cotton produce brought by the farmers to the CCI purchasing centres. This discourages cotton farmers but indirectly helps cotton traders.  

Former Assistant JDA of Adilabad C Narsingu said the intervention of the CCI in commercial operations could save the cotton farmers from a crisis.  

“The cost of cultivation increased this kharif season due to various reasons,” Mr Narsingu said, and added that CCI should come to the rescue of the cotton farmers from the beginning of the harvesting season in the last week of October.

...
Location: India, Telangana, Adilabad




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