Farmers averse to direct selling of cotton to CCI

Perneet Singh

Tribune News Service

Bathinda, September 16

While cotton arrivals have started in the region’s markets, a majority of farmers are averse to selling off their produce to the Cotton Corporation of India (CCI) due to the government agency’s condition of direct purchase. They contend that they cannot break their ties with the ‘arhtiyas’ (commission agents) even if they have to sell their produce at a lesser price.

Though initial reports suggest that cotton has fetched good prices, as high as Rs 5,900 per quintal, in some areas, but experts say it will be too premature to predict how the season will unfold in the coming days. The issue holds great significance in view of the fact that the textile industry is reeling under a fiscal slowdown and there are apprehensions that cotton farmers may not find private buyers.

Talking to The Tribune, Harvinder Singh, a cotton farmer from Harraipur village, said, “We have been dealing with the ‘arhtiyas’ for years now and we cannot even think of snapping our ties with them. They are the ones who hold our hand in hour of crisis. They do not think twice before handing over the advance payments to us whenever we need it. There are many farmers who have already taken almost 50% of the cost of their cotton produce from the ‘arhtiyas’. Therefore, the question of selling cotton directly to the CCI does not arise.”

Kulbir Singh, another farmer, said, “When we sell our cotton through ‘arhtiyas’, we do not have to worry about our payment, though the latter receive them a bit late. Who will be responsible for the release of our payment if we sell our cotton to CCI? We may think of selling our produce to the government agency only if it ensures immediate release of payment.”

Interestingly, these farmers said they would still facilitate commission to the ‘arhtiyas’ despite selling cotton directly to the CCI. “We can’t afford to antagonise them,” quipped Bhan Singh, who has sown cotton on 2.5 acres of land. They felt that in the current circumstances, only those farmers will be ready to sell their produce directly to the CCI who wish to avoid repayment of debt to their respective ‘arhtiyas’. Gurchet Singh from Bhokhra village said he would not mind selling his crop at a lesser rate to private buyers rather than going for the CCI.

PAU’s senior farm economist Dr GS Romana said, “The farmers seem justified in their stand, as 65% of them own less than 4 hectares of land and are in a hand-to-mouth situation. They are heavily dependent on the ‘arhtiyas’ and cannot survive without credit.” He said 65 per cent of the state’s farmers own 30.89% of its land while 6.62% of big farmers own 25% of the state’s land, which reflects the imbalance in distribution of soil.

Incidentally, the CCI had stepped into the market last year too, but it was precisely due to its condition of direct purchase that it did not find any takers despite the fact that the farmers, at times, even got a little less than the MSP of Rs 5,350 per quintal. Unfazed, the CCI has kicked off preparations for the coming cotton season. 

Sources said the agency had already floated tenders for labour, godowns, transport and hiring factories. The sources said the agency may also try to cut down the time for release of payment to the farmers in view of their reservations. The agency had already told the market committees to spread the word among the farmers that they must bring along documents like their bank passbook, Aadhaar card and photographs for selling their produce to the CCI.