bought cotton: Permission for 'Pannan', but no funds; cotton procurement dilemma?
Kapus Kharedi: Farme rs have suffered a major setback this year during the cotton season. The Maharashtra State Cotton Marketing Federation (Pannan) has received permission from the central government to procure, but due to a lack of funds, procurement centers are unable to operate.
Financial assistance has also been stalled due to the account being declared 'NPA'. As a result, farmers' reliance on the Cotton Corporation of India (CCI) this season has once again rested, while the lack of a concrete decision from the government has increased their concerns.
Farmers' hopes for the cotton season in the state appear to be dashed. The Maharashtra State Cotton Marketing Federation (Pannan) has received permission from the central textiles ministry to procure cotton, but due to a lack of funds, procurement centers are unable to operate.
Since Pannan's account is currently declared a non-performing asset (NPA), obtaining financial assistance from banks has become difficult. Therefore, farmers will once again have full confidence in the Cotton Corporation of India (CCI) this season.
Proposal Stalled Due to Lack of Funds
A proposal to set up a procurement center was presented at the Federation's board of directors meeting held in Mumbai on September 30. However, this proposal is currently stalled due to a lack of funds.
Federation Director Rajabhau Deshmukh stated that the Federation is expecting to receive some of the outstanding funds from the central government and, if the funds are received, efforts will be made to set up a procurement center.
Although the President and Vice President of Pannan have met with Chief Minister Devendra Fadnavis and requested financial assistance, the state government has not yet taken any concrete decision.
Impact of Foreign Cotton on the Market
The abolition of the 11 percent import duty on cotton by the central government has paved the way for cheap cotton from abroad to come to India. This has provided the country's textile industries with an alternative to cheaper imported cotton, leading them to import bales directly from abroad. This situation has reduced demand for Indian cotton, threatening to cause prices to fall in the local market.
Increased Burden on Farmers
New cotton has begun arriving at farmers' homes. However, due to the market not opening purchasing centers, the blame falls squarely on the CCI (Cotton Corporation of India). Market prices are currently unstable, and farmers are facing hardship due to arbitrary pricing by traders.
The state government needs to take immediate, concrete decisions to provide stability to cotton-producing farmers. Otherwise, if cotton has to be sold at lower prices, farmers' economic calculations are likely to be completely disrupted.
read more :- Wardha: Farmers waiting for procurement centers, 15,000 registered with CCI
