After 5-year lull, 650 quintals cotton procured on first day of season


Staff Reporter
After almost negligible procurement in past five years, Maharashtra State Co-operative Cotton Growers Marketing Federation (MSCCGMF or Cotton Federation) procured a handsome 650 quintals of cotton on the very first day of procurement this time. Cotton Federation started procurement for the season 2014-15 on Saturday at 27 centres across the State.
With the cotton prices at a five-year low in international market, and the Government not starting procurement centres, farmers were forced to sell cotton at a price below the Minimum Support Price (MSP) in open market. For past few years, cotton-growers were getting good price in open market and it was more than the MSP declared by Central Government. They were happy. However, this time, with crashing of cotton prices, farmers had their only hope in procurement at MSP at Government centres. In Maharashtra, the Government started procurement through MSCCGMF from Saturday.

Published in The Hitavada CityLine on November 16, 2014

The plan is to open 100 centres at the end of third phase of procurement. Of these 100 centres, as many as 50 are proposed in Vidarbha region. With the prevailing market conditions, MSCCGMF procurement evoked a very good response and 650 quintals of cotton was procured on the very first day of the season. For the first time, MSCCGMF is working as an agent of Cotton Corporation of India (CCI), instead of National Agricultural Co-operative Marketing Federation (NAFED).
In the first phase, only 27 centres have been opened across the State. Of these, 13 are in Vidarbha reegion. Of a total 650 quintals of cotton procured on the very first day, 430 quintals was procured in Vidarbha alone. This is the highest in past five years. In 2010-11, 2011-12, and 2013-14, MSCCGMF could not procure even a single bale throughout the procurement season as farmers preferred open market over the Government procurement. In 2009-10, the procurement in entire season was only 14,000 bales. It was 12,000 bales in the entire season of 2012-13.
Dr N P Hirani, Chairman of MSCCGMF, expressed happiness over the first-day procurement. He told ‘The Hitavada’ that procurement at MSP might lead to traders raising procurement price in open market also in days to come. Still, he said, the MSP of Rs 4,050 per quintal was insufficent considering the input cost involved in cotton production. “Due to bumper production of cotton, prices have crashed internationally and nationally. Traders are offering only Rs 3,800 in open market. In such a situation, procurement by Cotton Federation at Rs 4,050 is certainly a respite to farmers,” he said. He predicted prices in open market to go up to Rs 4,500 per quintal.

Year-wise procurement of cotton and its value

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Year                     Procurement

                          (in lakh quintals)

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1984-85                     86.62

1985-86                   145.18

1986-87                    63.67

1987-88                    61.18

1988-89                    57.13

1989-90                  100.93

1990-91                   65.85

1991-92                   51.21

1992-93                   94.85

1993-94                   65.11

1994-95                  52.17

1995-96                131.03

1996-97               149.89

1997-98                 88.35

1998-99               120.46

1999-2000          175.98

2000-01                74.50

2001-02             153.18

2002-03               23.58

2003-04              0.032

2004-05            211.65

2005-06             18.85

2006-07             32.65

2007-08               1.29

2008-09           167.94

2009-10               0.14

2010-11               Nil

2011-12               Nil

2012-13             0.12

2013-14              Nil

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(Source: MSCCGMF)

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