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LATEST NEWS UPDATES | Cotton farmers counting the losses -Rutam Vora, KV Kurmanath and Vishwanath Kulkarni

Cotton farmers counting the losses -Rutam Vora, KV Kurmanath and Vishwanath Kulkarni

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published Published on Feb 1, 2017   modified Modified on Feb 1, 2017
-The Hindu Business Line

Rising pest attacks are mounting pressure on cotton farmers even as prices play truant.

Rajeshbhai Patel is not amused. The farmer in Kadi, northern Gujarat grew cotton on four bigha in this year’s kharif season, instead of 11 in 2016. He had reduced the acreage fearing increasing costs owing to pests attacks. But as cotton prices rule at unusually high levels in the ongoing harvest season, he is ruing at the missed opportunity.

So is the case with Ketan Nakumbh, a farmer from Jam Khambalia in Gujarat. "Looking at the prices this year, we feel like trying our luck next time again," Nakumbh adds.

Farmers like Patel and Nakumbh across the country had reduced the cotton acreages this year and chose to plant more of pulses and oilseeds, after being hurt by the increasing incidence of pest attacks, including that of the dreaded pink boll-worm and white fly. As a result, cotton acreage had shrunk by about a tenth over last year.

Despite the apex trade body — Cotton Association of India — estimating a bigger crop than last year at 341 lakh bales, on account of higher yields, cotton prices have witnessed a rally in the recent weeks.

Cotton prices have jumped by more than a fourth this year, to touch as high as Rs. 6,100 per quintal recently in the spot market of Gujarat, the largest producing state, as against Rs.4,800 around the same time last year. Demand from overseas buyers such as China, Bangladesh and Vietnam has fuelled the price rally.

The demonetisation move, announced by the Narendra Modi Government in November, also played a role, as the cash crunch impacted market arrivals. Many of the farmers accepted payments in old currency notes but only when their produce got a premium, which resulted in a spike in prices, even driving up the global prices at the benchmark New York terminal. Cotton prices hovered around Rs.4,500-4,650 a quintal in the last week of October 2016.

Many farmers continue to hold on to their stocks anticipating higher prices. "So far only 1.4 crore bales have arrived, and we are waiting for the crop of around 2 crore bales. ” said Rakesh Rathi, President, North India Cotton Association. “No other crop including pulses, paddy, guar or vegetables has been so attractive," he added.

"We expect the price to touch the Rs.6,500-mark in February before softening. We, however, can't say that it will remain the same in the next season," says a functionary of National Seed Association of India (NSAI), on conditions of anonymity.

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The Hindu Business Line, 30 January, 2017, http://www.thehindubusinessline.com/specials/india-file/cotton-bt-suicide-pests/article9509968.ece


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