Farmers are selling to local dealers around 4,000 to 4,500 rupees per quintal in a number of areas in the Tiruvarur district even though the Minimum Support Price (MSP) is roughly 6,300 rupees per quintal.
Tamil Nadu cotton farmers, particularly those in the delta regions, are harvesting the summer crop and discovering prices that are about 50% lower than the previous year and in many cases lower than the MSP.
According to a Cotton Corporation of India (CCI) official in Coimbatore, the CCI has staff in the delta districts and is ready to step in and purchase cotton at MSP if prices drop below that level.
Only medium- or large-scale farmers are permitted to sell their produce in controlled markets at rates above the MSP. Smaller farmers in the Tiruvarur area sell to local vendors who are offering prices below MSP and blaming quality difficulties, according to Manohar Sambandam, a farmer himself.
He claims that the price of cotton sold to local dealers differs from the price attained at the controlled markets by at least $10 per kg. He claims that although there is need for development in post-harvest procedures to raise cotton quality and increase prices, dealers are also not giving farmers fair pricing.
Although prices were 6,500 to 7,000 per quintal at the start of harvesting last year,
Mr. Sambandam continues by saying that policy-level adjustments are required. “Steps must be taken to guarantee cotton farmers stable prices. One possibility is the creation of FPOs,” he argues.
The farmers assert that in order to increase yield, they require a supply of high-quality seeds.
