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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.
Bathinda, January 9
Cotton farmers in Punjab are elated over private players making purchases way above the minimum support price (MSP) this season.
While the Cotton Corporation of India (CCI) is buying cotton at Rs 5,665 (the MSP for premium quality is Rs 5,725), private players have started making purchases at Rs 5,900 per quintal.
High demand
is Rs5,725 per quintal
Pvt parties making purchases at Rs5,900 per quintal
Experts attribute it to the rise in cotton demand globally
The CCI made a record purchase (27.50 lakh quintals) in the initial few months but it’s the private players who are dominating the show now. They have purchased 5.5 lakh quintals so far. Neeraj Kumar, GM, CCI, Punjab said: “Owing to high demand, cotton prices in the international market have soared. Also, traders at times store raw stocks and wait for the prices to rise further to earn handsome profits.”