Private Traders in Adilabad Purchasing Cotton Below MSP
Adilabad: Amidst delays in the commencement of cotton procurement by the Cotton Corporation of India (CCI), private traders in the Adilabad region are purchasing cotton from farmers at prices approximately ₹300 per quintal below the Minimum Support Price (MSP). This has made it difficult for farmers to secure a fair price for their produce.
According to data from the Agriculture Department, cotton was cultivated across approximately 11.50 lakh acres in the undivided Adilabad district this year. Favorable weather conditions had initially projected a yield of 90 lakh quintals. However, farmers report that the impact of El Niño and a deficit in rainfall have reduced the total yield to around 50 lakh quintals.
On October 22, the CCI began procurement at an MSP of ₹8,667 per quintal for cotton with an 8 percent moisture content. Officials state that 33 ginning mills have been identified and 18 procurement centers established within Adilabad district. Similar procurement arrangements have also been made in the districts of Nirmal, Kumuram Bheem Asifabad, and Mancherial.
Despite this, in remote and tribal-dominated areas, private traders are setting up makeshift procurement centers at village squares and along roadsides. It is alleged that they are paying farmers about ₹300 less than the MSP, citing high moisture content as the reason. Some traders are also making additional deductions under the guise of labor (hamali) charges and for providing immediate cash payments.
According to farmers, traders are also recovering old debt amounts during the sale of cotton. The financial burden on farmers is increasing due to loans taken from private moneylenders at high interest rates.
Farmers have urged the administration to conduct raids on these unauthorized procurement centers and ensure that they receive the full benefit of the MSP. In this regard, District Marketing Officer Gajanand stated that only traders licensed by local agricultural marketing committees are permitted to purchase cotton. Illegal traders will face fines, and the Legal Metrology Department may seize their weighing machines. According to him, there are approximately 550 licensed traders in the undivided Adilabad district.
Key statistics: Cotton cultivation area of 11.50 lakh acres, initial estimated production of 90 lakh quintals, revised estimated production of 50 lakh quintals, Minimum Support Price (MSP) of ₹8,667 per quintal, 33 ginning mills, and 18 procurement centers.
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