Indore, November 9 (Commodities Control): Despite government assurances to support farmer incomes, cotton farmers in Malwa-Nimar, Madhya Pradesh, are struggling as prices remain below the minimum support price (MSP). Known as "white gold," cotton is being sold in the state's markets at rates much lower than the MSP, leaving farmers in financial distress. Although the government announced the start of MSP procurement through the Cotton Corporation of India (CCI) in early October, delays and technical issues have slowed the process. Only after farmers threatened protests did CCI initiate limited procurement in the region.
Limited Procurement Centers
Currently, CCI has started buying cotton at MSP from only three centers—Khargone, Barwah, and Bhikangaon—out of the planned 23 centers across the state. Procurement centers are also planned in districts including Khandwa, Barwani, Burhanpur, Alirajpur, Dewas, Dhar, Ratlam, Jhabua, and Chhindwara, but purchases at these sites are still pending.
MSP Rates and Market Prices
The government has set the MSP for medium-length cotton at ₹7,121 per quintal and long-fiber cotton at ₹7,521 per quintal, with H-4 quality cotton, widely grown in MP, pegged at ₹7,421 per quintal. However, the average mandi prices currently range from ₹6,000 to ₹7,000 per quintal, forcing most farmers to sell at a loss, despite occasional transactions near the MSP.
Registration Issues and Software Glitches
To sell at MSP, farmers must register at CCI centers. However, technical issues and outdated land records (Khasra) are preventing many from registering. Updated records are required for CCI registration, yet many farmers' Khasra accounts for cotton crop areas remain offline, hindering their access to MSP.
Cotton Production and Quality Specifications
This year’s cotton production in MP is expected to match last year’s at around 18–20 lakh bales, though earlier estimates suggested an increase to 21–22 lakh bales. CCI has also mandated that cotton moisture content must not exceed 12 percent to qualify for purchase, with deductions applied for moisture over 8 percent.
Farmers Facing Double Financial Losses
Farmers’ frustrations are exacerbated by the lack of updated Khasra records, impacting not only CCI registrations but also crop insurance claims. Due to delayed online updates, insurance companies have been unable to process claims, leaving farmers without compensation for crop losses, despite having paid premiums for Kharif season crop insurance.
(By CommoditiesControl Bureau; +91-9820130172)
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