Farmers prefer cotton over paddy, oilseeds this season

In northern states the area under paddy is being diversified towards cotton as the cost of cultivation of paddy is higher than cotton

With cotton sowing in full swing across major producing states, the trend this season indicates a rise in the crop’s acreage compared to last year. This is because cotton offers higher returns compared to other kharif crops such as paddy and oilseeds, as well as the introduction of improved varieties, which cut costs related to pest- and weed-control, and labour.

Sowing is in the final stages in Punjab, Haryana and Rajasthan; in Gujarat, Maharashtra and Madhya Pradesh, it is expected to last a few more days.

In northern states, the area under paddy is being diverted towards cotton, as cultivation costs for the latter are lower.

Jagtar Singh Brar, a farmer from Mehma Sarji (Bathinda district), in Punjab, said with agricultural labour turning scarce and the water table dwindling, paddy has been becoming less remunerative (farmers in Punjab and Haryana use underground water to irrigate paddy fields and run tube wells; now, this is becoming unviable due to high diesel costs). Also, paddy has an adverse impact on soil, as fields are inundated for two months. Cotton helps loosen the soil and make it conducive for sowing other crops, too.

Last year, the minimum support price for the short- and long-staple cotton varieties stood at Rs 3,700 a quintal and Rs 4,000 a quintal, respectively. Farmers sold the commodity in the open market for up to Rs 5,000 a quintal.

For farmers in Gujarat and Maharashtra, too, cotton has turned more lucrative compared to oilseeds. Dilip Bhai Patel, president of All Gujarat Cotton Ginners’ Association, said, “Last year, prices of oilseeds remained consistently low; so, cotton is being preferred by farmers. The area under cotton could see an estimated rise of 15 per cent.”

He added this year, the monsoon might be sub-normal, owing to the El Niño phenomenon. He said a good monsoon last year had filled water reservoirs and, therefore, the predicted shortfall of six per cent in rainfall wouldn’t affect yields. Semi-draught-like conditions helped increase cotton yields, he added.

This year, production is estimated at 40 million bales (one bale=170 kg) Arrivals start in October. The spinning sector’s annual requirement is 30 million bales. Arun Seksaria, director of a leading cotton trade and export house, said this year, farmers were shifting to cotton. He added they might get good remuneration.

Though exporters aren’t bullish, due to the strengthening rupee and the competitive international market, a change in government policy (likely due to the change of guard at the Centre) might drive up exports. Sources at Monsanto, a major supplier of BT cotton seeds in India, confirmed this year, the demand for cotton seeds was higher than last year, across producing areas.