Cotton farmers in Guntur in Andhra Pradesh are availing the benefits of an open market by receiving a larger sum for their produce than the per quintal rate set by the Cotton Corporation of India (CCI), the Hans India reports.
The CCI has fixed a price of Rs 5,825 for each quintal of quality cotton. Apparently, the cotton sowing area in the district had reduced as farmers gradually switched to sowing chili crops to get a better price in the market.
Moreover, heavy rainfalls in September and October damaged the cotton crops in the southern state. There was lesser yield of the cash crop as a result and hence the supply for quality cotton was limited in the market.
Private traders are storing cotton for exports, buying it for at the rate of Rs 5,600-Rs 6000 per quintal, and the price is only slated to increase in the coming times.
Farmers say that these traders purchase cotton at their doorsteps and it cuts down the transportation of carrying the produce to the yards.
Secondly, private buyers tend to clear payments relatively swiftly and this has drawn farmers towards selling cotton in the open market.
On the other hand, those who didn’t sell their yields to commercial traders incurred massive losses given the climatic conditions last season.
“A few farmers will benefit due to increase of cotton price in the open market. Most of the stocks already sold. Cotton price in the open market increased after the farmers sold their cotton stocks. I have cultivated cotton in two acres. Crop damaged due to heavy rains. I got 50 percent less yield this year and suffered heavy losses,” K Sambasiva Rao, a farmer from Pidiguralla, was quoted as saying.