Date:09/01/2008 URL: http://www.thehindu.com/2008/01/09/stories/2008010956320600.htm

Andhra Pradesh

Cotton fetches big bucks for farmers

Staff Reporter

GUNTUR: Cotton farmers in the district are elated at the attractive remunerative prices offered for quality cotton and now the Cotton Corporation of India (CCI) too has decided to offer competitive prices. For the first time in four years, the CCI has commenced procurement of cotton at remunerative prices on par with private traders at the cotton purchasing centres at Inkollu and Parchur in Prakasam district. The current price offered by the CCI at their two centers is around Rs.2,200 to Rs.2,300 per quintal, which is far higher than the minimum support price pegged at Rs.2,050.

“We have started purchasing cotton at these two centres as it is viable for the CCI. There are a good number of ginning mills near the two centres. We will consider offering similar prices at other places too,” CCI Branch Manager P.A. Ghate told The Hindu on Tuesday. However, procurement in Guntur would take some time as CCI is hard pressed to find space in the ginning mills. Officials admit that unless the cotton purchased, is processed and sent away, it would be a difficult proposition to buy cotton at a higher price.

This development comes amid reports of record export orders from buyers in China, Bangladesh. Most of the farmers have already been approached by the private traders even before the pickings began.