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On Monday, Finance Minister Nirmala Sitharaman of India says in her budget speech in parliament that India will impose 10% duty on cotton import to help farmers. A levy on overseas purchases will potentially support local prices amid higher domestic production and prevent distress sales by the growers. There is no duty on cotton imports until now. After our analysis, this move is mostly to digest its domestic cotton inventory, improve Indian cotton prices and reduce the loss of CCI via cotton auction. In addition, cotton imports of India have decreased apparently. In short, this move may have limited influence on global cotton liquidity and prices.ã
8723
Sanjeev Singh Bariana
IN an affirmation of the Minimum Support Price (MSP) regime, the purchase of more than 80 per cent of the cotton in mandis of Punjab by the Cotton Corporation of India (CCI) is helping farmers get higher prices from private traders and industrialists these days. Farmers have sold cotton for as high as Rs 6,000 per quintal against the MSP of Rs 5,515.
“I got Rs 5,900 per quintal for my yield this time. My friend from a neighbouring village told me that he got Rs 6,000 a few days ago,” says Dharinder Pal of Kanakwal village in Bathinda district. The CCI entered the mandis last year after a gap of five years and gave good prices to farmers. Last year’s profits motivated the farmers to plant more cotton this season. The CCI again made the bulk of the initial purchase, prompting private parties to pay even higher.
2818
Sushil Manav
HARYANA’S cotton acreage of 7.38 lakh hectares in Kharif-2020 is not only the highest in the cotton belt of North India, comprising Punjab, Haryana and Rajasthan, but also the maximum in any year so far for the state. The crop was grown on 7.01 lakh hectares in the state this time. There is a slight decline in productivity (production per hectare), though better prices have compensated farmers for the loss in yield.
“I harvested nearly 30 quintals per hectare of cotton last year, but this time, I could get only 22-23 quintals,” says Gurdial Mehta, a farmer from Panjuana village of Sirsa. He, however, adds that he could sell his crop for Rs 5,900 per quintal this year, far better than Rs 5,390 received last year.
Updated:
January 21, 2021 15:12 IST
Chairman and Managing Director of the Cotton Corporation of India, Pradeep Kumar Agarwal, said the facility has been introduced to ensure price security for textile mills
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Chairman and Managing Director of the Cotton Corporation of India, Pradeep Kumar Agarwal, said the facility has been introduced to ensure price security for textile mills
The Cotton Corporation of India (CCI) has permitted those who buy cotton from it through e-auctions, to lock in the cotton prices.
Chairman and Managing Director of the CCI, Pradeep Kumar Agarwal, said the facility has been introduced to ensure price security for textile mills.
Approximately 80 per cent of the new arrivals were mopped by the CCI in the first three months of the season, which implied translated into purchases of 27.5 lakh quintal.