Punjab wants cotton procurement to restart, CCI cites lack of space

Farmers have been holding back 5 lakh quintal, hoping for a better price from private traders; no clarity on when buying would begin

Even as authorities in Punjab claim that modalities are being worked out to restart the purchase of cotton from farmers, the Cotton Corporation of India (CCI), the central agency for procurement, says it is facing the problem of plenty of processed stock. Private traders, who were, anyhow, purchasing the crop below the MSP (minimum support price) this season, are unlikely to jump in the procurement exercise amid Covid-19 outbreak, sources say.

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Cotton is the economic lifeline of farmers in the semi-arid belt of south Malwa region as the crop is sown in eight districts, mainly in Fazilka, Mansa, Bathinda and Muktsar. Hoping for higher price by private traders, about 5 lakh quintal cotton stock is still held back by farmers, before the curfew was imposed, officials claim. This season, the CCI has purchased about three lakh bales (one bale of cotton weighs 170kg) at the MSP of Rs 5,450 per quintal.

Cotton state coordinator Rajnish Goel told HT on Monday that deliberations are on with the CCI to commence buying of raw cotton within the next 2-3 days. “Modalities are being finalised and farmers will soon be apprised about it. We are concerned about the pandemic and all steps will be taken to ensure safety,” said Goel. Mansa and Faridkot have already accorded permission to the CCI to resume purchase.

However, CCI officials say they are facing multiple problems in the middle of national emergency to restart cotton purchase. Private ginning units associated with CCI have reportedly said there is shortage of labour to process more raw cotton.

An official added that the CCI was mandated to buy cotton stocks till September 30, so purchase should be started after pandemic situation eases.

“Owing to the national lockdown and curfew in Punjab, transportation of ginned cotton is completely stopped. Private buyers from Punjab and others states are unable to get binola, which is used as cattle feed, from CCI warehouses and the central agency has hardly any space left for a new purchase,” said the official.