Cotton farmers in a quandary due to a lack of agreement between the CCI and ginning mills
Guntur: The Cotton Corporation of India (CCI) has been unable to reach an agreement with ginning mills to open procurement centers for the upcoming season. This has left cotton farmers in a state of deep confusion and anxiety.
The CCI has twice extended the deadline for finalizing bids through tenders, but no concrete solution has yet been reached. Meanwhile, ginning mill management is adamant on demanding revisions to the tender conditions and has boycotted the tender process.
Farmers fear that cotton prices may fall further during the peak season, so they are trying to sell their stocks early. The situation has worsened when prices have fallen to ₹6,500–₹7,000 per quintal even during the off-season. The government's decision to remove import duties for approximately 45 days has also dealt a blow to the domestic market.
Although the government has increased the Minimum Support Price (MSP) for the upcoming season to ₹8,110 per quintal and directed the CCI to purchase stocks from farmers, the procurement process has stalled due to a lack of agreement with ginning mills.
The CCI initially intended to finalize tenders by September 1, but due to protests, the deadline was extended to September 25. Despite this, no mills submitted bids.
According to sources, the CCI has forwarded the demands of ginning mills to the Union Ministry of Commerce and is now awaiting a response from the ministry. The main demands of the ginning mills are:
* Bids should be invited region-wise,
* The minimum bid requirement should be removed,
* All ginning mills should be given the opportunity to participate,
* No deadline should be imposed on farmers for the stock they can bring.
Mills insist that farmers bring stock at their convenience, while the CCI believes that only a fixed schedule will allow for proper procurement monitoring and management.
A CCI official said, "If farmers are allowed to bring stock without a fixed schedule, it will be difficult to monitor procurement and accurately identify farmers."
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