Govt to open more centres for cotton procurement

In order to protect farmers from falling cotton prices, the government will step up procurement at support rate by opening more centres, particularly in major producing states AP, Telangana, Maharashtra and Gujarat.
A decision in this regard was taken at a high-level meeting called by Agriculture Minister Radha Mohan Singh.
Textile Minister Santosh Gangwar, Commerce Minister Nirmala Sitharaman and Labour Minister Bandaru Dattatreya and two junior agriculture ministers, Mohanbhai Kalyanjibhai Kundariya and Sanjeev Balyan attended the meeting.
Briefing the media after the meeting, Gangwar said: "Cotton Corporation of India (CCI) has been asked to step up its procurement operation by opening more centres wherever prices have fallen below the minimum support price (MSP)."

The government has not set any cap on cotton procurement. "We will buy whatever quantity that comes to us and the government will bear the expenses," he said.
"We will not allow farmers to face any problems due to fall in prices. Farmers will get the MSP for their produce," he added.

State-run CCI, under the Textile Ministry, has about 300 procurement centres across the country. It has already started buying cotton at the MSP rate in Andhra Pradesh and Telangana.
Cotton prices are now ruling below MSP of Rs 4,050 per quintal in Andhra Pradesh, Telangana and even in other growing states due to sluggish export demand and anticipated higher domestic production.

The Agriculture Minister said: "To accelerate procurement in Andhra Pradesh and Telangana, where arrivals have increased, CCI has been asked to increase procurement centres from the existing 90 to 113."
CCI has so far procured about 2.5 lakh bales of 170 kg cotton in AP and Telangana, he added.
Dattatreya, who raised the concerns of cotton growers in Telangana and Andhra Pradesh in the meeting, said that the government has also decided to take strict action "if if finds there is any nexus between the CCI and traders".
The Cotton Advisory Board has pegged the country's total cotton production at over 40 million bales in the 2014-15 crop year, as against 39.8 million bales in 2013-14. One bale contains 170 kg of cotton.

Later, an official statement, said that in the meeting, CCI Chairman and Managing Director B K Mishra informed that the Corporation has taken all possible steps to increase the number of procurement centres. But it does not have authority to appoint any cooperative to act as its agent.
"Ministry of Agriculture may kindly look into the possibility of enhancing the government guarantee limit of NAFED for facilitating them to appoint State Agency i.E. Maharashtra federation," the release said.