Farmers call for synchronised policy on cotton

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New Delhi, May 15: With the cotton sowing season slated to begin shortly, farmers have urged the government to adopt a proper synchronised policy so that the growers do not suffer on account of a possible glut in the domestic market.

Encouraging disposal of previous year’s stock by way of exports to countries like China can be a better option, they said.

The chairman of the Confederation of Indian Farmers’ Association (CIFA), Sanat Mehta has written to Union agriculture minister Sharad Pawar, textile minister Shankar Singh Vaghela and commerce minister Kamal Nath asking them “to adopt a positive attitude to resolve the emerging problem” and not to indulge in a blame game.

He said that in 2004 season there was a record output of 23.2 million bales of 170 kg each, surpassing all expectations. There was a glut in the domestic market due to a bumper crop. The falling prices of cotton pressed the Cotton Corporation of India (CCI) and the Maharashtra Cotton Federation (MCF) into procurement. “This year, too, there are expectations of a good cotton crop and the government should be prepared to deal with the situation,” he said.

Commenting on previous year’s situation, Mr Mehta said, “if one takes an overall view, one can say that all throughout, the market remained bearish, that throughout, the market remained bearish, partly on account of lack of demand from mills. Most mills seemed in no hurry to buy cotton as huge unsold kapas as well as bales stock was built up with CCI, MCF and cooperative societies (Total 4.5 million bales)”.

According to the revised estimate of the Cotton Advisory Board (CAB), the opening stock at the beginning of 2004-05 season was 2.1 million bales. With cotton production of 23.2 million bales and import of 600,000 bales, the total availability was 25.9 million bales. Out of this stock of 25.9 bales of cotton, 16.8 million bales were purchased by the mills, 1.7 million bales was for small consumption, 1.3 million bales was for non-mill consumption and 1.2 million bales was for exports. Thus the total cotton consumption was 21 million bales, leaving a balance of 4.9 million bales as carryover stock in the current year.