Support Price Remains Out of Reach as Cotton Procurement Delays Hit Farmers

Gadwal: The cotton procurement season has officially begun in Telangana, but the Cotton Corporation of India (CCI) has yet to open its purchase centers. This delay has left farmers vulnerable, with traders and middlemen dictating prices. Despite the CCI issuing tenders twice for job work—intended for cleaning, ginning, and packing cotton for transport—cotton and ginning mills in the state did not participate. A third round of tenders has now been announced.

The Telangana Cotton and Ginning Mills Association has opposed changes made to the job work norms, citing operational and financial difficulties. Mill owners claim that adhering to the CCI regulations could further strain their already precarious finances. They have requested the government to revise the rules.

Procurement Process and CCI Norms

Traditionally, every year, after the CCI finalizes job work tenders, purchase centers are established not only with ginning mills but also at market yards and cooperative societies. Cotton is then purchased according to quality, ensuring farmers receive the maximum support price.

Key provisions of the current CCI norms include:

Cotton with moisture content above 12% is ineligible for procurement; previously, up to 16% was allowed.

The support price for long-staple cotton is ₹8,110 per quintal, while medium-staple cotton is set at ₹7,710.

Incentives apply only if moisture content is below 8%; for moisture between 8% and 12%, prices are adjusted proportionally.

Mills must now follow periodic quality checks for cotton lint after ginning; earlier, checks were monthly, now they are scheduled every few days.

The ginning wastage (or removal of seeds from cotton) norm has been halved from the previous standard of 1.70%.

Mills are again categorized into L1 and L2 for facilities and procurement, a system that was previously suspended.

Infrastructure requirements such as CCI roads, electronic weighbridges, and CCI cameras must now be strictly adhered to.

Procurement Delays and Farmer Distress

In Telangana, cotton was cultivated over 43.29 lakh hectares this season, with an estimated production of 24.70 lakh tonnes. Due to delays in CCI procurement, traders and middlemen have stepped in, buying cotton directly from farmers at extremely low rates. While the support price is ₹8,110 per quintal, traders are paying between ₹5,000 and ₹6,000.

Heavy rains this season have reduced yields by 30–40%, leaving farmers in debt and forced to sell their produce at a loss. With storage limitations and lack of infrastructure at homes, farmers are accepting whatever price they can get. Experts warn that if the delay continues for another week or ten days, most of the cotton will end up in the hands of middlemen. Even if CCI later procures cotton at support prices, the benefits would largely favor intermediaries, not the farmers themselves.

Government Efforts

The Telangana government has been attempting to resolve the dispute between CCI and the mills for two months. Agricultural Minister Tummala Nageswara Rao recently sent marketing department officials to Delhi to expedite a solution. The deadline for the third round of tenders is October 8. Authorities indicate that if the dispute is resolved by then, procurement could begin within a week.

Farmers and farmer union leaders are urging the government to immediately set up CCI procurement centers and ensure that cotton is purchased at the support price to protect the interests of the state’s cultivators.