In this context he points out that V 797 variety of cotton, for instance, which was ruling around Rs 16,500 per candy at the start of the current season is now being placed around Rs 12,500-13,000 per candy, but even at such throw away prices there is not enough offtake.

Cultivators, he says, fear that arrivals of cotton may continue until the start of the ensuing monsoon and it might be difficult to get it processed before the arrival of rains. As an urgent measure, he feels, the central government as also the state agencies should make large-scale purchases from farmers at remunerative prices.

Mehta complains that the support from the state government isvery limited while the Cotton Corporation of India is moving in the opposite direction. It had hardly made 50 per cent of its previous year's purchases. Against the estimated production of 10 lakh bales of V 797 cotton, CCI's purchase target for that variety, according to him, was just around 33,000 bales. This variety is being purchased by it only at five of its centres.

Cotton cultivators in the country as well as in Gujarat are passing through extremely difficult times. Referring to the plight of those producing varieties like V 797, Mehta says short-staple varieties are mostly produced on dry, barren areas. Farmers producing such varieties suffer the most. In this context he points that the union government had fixed the support price for V 797 variety at Rs 1300 per quintal, though the reasonable support price for this should have been about 20 per cent higher around Rs 1644 per quintal.

The market prices had fallen much below that level. On the other hand in the neighbouring Maharashtra the entireproduction in the state is being purchased at 25 per cent higher than support prices and the state government bears the loss, if any, in such operations.

On the other hand, the prevailing prices for cotton in Gujarat are just around 10-12 per cent higher than the support prices and yet even at such low prices, very limited quantities are being purchased under the state government's scheme.

Explaining how cotton production went up substantially this season, Mehta says, it was largely due to increase in acreage than in yield. Per acre yield had come down and production cost had risen. Cotton prices were on the downward curve for the last three years. Domestic and international factors were responsible for this. As we have had signed the GATT Agreement, imports of even those items of which there was plenty of domestic productions, were being allowed. On the other hand, there were still quantitative restrictions on exports of items like cotton. Furthermore, there were several restrictions on cotton under theCotton Development & Regulation Order 1988.

Moreover, subsidies available to farmers on water, power and fertilisers were being slashed or removed while suggestions were being made to tax agriculture. Developed countries were supporting their agriculture sector, while in India agriculture was being given negative support.

There is discrimination in India, in the amount of credit, interest rates and infrastructure facilities available to the agriculture. Such a policy, he fears, will increase unemployment and poverty and will make the country dependent on other countries.

Mehta is emphatic that export restrictions on cotton etc should be removed, farmers should be given the maximum benefits permissible under the GATT. Infrastructure facilities should be increased for agriculture, new technology should be taken to the farms and discrimination between agriculture and industry should be scrapped.