After rains in late November affected standing crops in parts of Vidarbha, rates of cotton, the region's main agricultural produce, have fallen below the minimum support price (MSP). Sources said the rates were barely above the MSP since the start of the season in October.
Now, because there has been rain on the standing crops, there has been moisture in the cotton seeds, causing a decline in prices.
Against the MSP of ₹7,020 per quintal, open market rates are now between ₹6,800 and ₹6,700, sources said. Traders say that this is a temporary incident caused by rain.
Sudhir Kothari, director of Agricultural Produce Market Committee (APMC) in Hinganghat, said the rates have fallen due to cotton seeds taking up moisture. This is because the weight of cotton bolls increases due to water content. To compensate for the extra weight, ginners adjust prices downwards. However, if the sun shines again, prices are expected to improve in a week. Farmers will get lower prices only for existing offtake, Kothari said.
Manish Jadhav, an activist of Shetkari Sangathan (Swabhimani) in Yavatmal, said the low prices have added to the problems of farmers as the rains are likely to affect their produce.
Soybean yield has also seen a major decline due to yellow mosaic pest, but despite lower yields, rates for the crop are slightly higher than the MSP, activist Vijay Javandhia said.
Once the market prices fall below the MSP, the government steps in to support the prices. Cotton is procured by the Cotton Corporation of India (CCI) which sets up MSP procurement centres. Traders said CCI centers have not yet started in Vidarbha as the rates are above the MSP.
A survey is being conducted to assess the damage caused by rain in the state.
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