Cotton farmers brace for a rush at procurement centers as market prices remain below the MSP.
As Telangana's cotton marketing season approaches, farmers are bracing for a surge at procurement centers as market prices are falling well below the MSP. With over 600,000 farmers affected, the state has expanded procurement facilities and introduced digital tools like the Cotton Farmer App to manage these crowds. However, concerns remain about payment delays, quality-related rejections, and private traders taking advantage of long queues.
Hyderabad: With the 2025-26 cotton marketing season set to begin in mid-October, Telangana farmers are bracing for a rush at government procurement centers as market prices remain well below the Minimum Support Price (MSP). This price gap has raised concerns about bottlenecks and delayed payments for nearly 600,000 farmers in districts like Warangal, Adilabad, and Nalgonda.
Currently, market prices in markets like Jammikunta and Bhainsa are ranging between ₹6,333 and ₹6,805 per quintal, and reaching up to ₹10,000 per quintal. The MSP for medium-staple cotton is ₹1,435 to ₹7,710, lower than the 8.27 percent increase from last year. The situation is even worse for long-staple varieties; the MSP is fixed at ₹8,110, but market prices are significantly lower.
In a recent meeting, state officials and representatives of the Cotton Corporation of India (CCI) cited the ₹1,099 MSP-market gap as a major concern and urged aggressive procurement to protect farmers from distress sales. Telangana expects 5.3-5.5 million bales from 1.851 million hectares of cotton cultivated this season, with the potential to reach 7 million bales under favorable conditions.
To manage the expected surge, the number of procurement centers has been increased from 110 to 122, with a new facility added at Konaraopet in Rajanna Sircilla. Last season, Telangana had the highest procurement nationally, procuring 4 million bales of cotton at 508 centers, but this year's anticipated high arrivals could put significant pressure on the system.
CCI President Lalit Kumar Gupta said the agency aims to procure 5-7 million bales of cotton nationally, but warned that, like last year, peak arrivals could exceed capacity. There are fears that private traders could take advantage of long queues at centers to purchase cotton at cheaper prices.
In response, the state has launched the Cotton Farmers App for slot booking, Aadhaar-linked payments, and monitoring committees at local centers to ensure fair quality checks and accurate weighing. A toll-free helpline (1800-599-5779), WhatsApp support (88972-81111), and a new command control room at the Directorate will provide real-time grievance redressal.
Globally, cotton production declined by 1.3 percent to 117.2 million bales, and international prices remained below production costs due to higher supplies from Brazilian exports, further depressing Telangana's market rates.
Officials have warned that 80-90 percent of Telangana's production could end up at CCI centers, risking payment delays and quality-related rejections. A trader from Nalgonda warned, "Lower prices will mean procurement disruptions. Small farmers could lose thousands per acre if CCI doesn't take immediate action."
