Cotton Farmers Anticipate Better Prices with New Government in Place
2024-12-02 10:39:58
Cotton Growers Hope for Higher Prices Under the New Administration
Nagpur While the recent crash in soybean prices did not significantly impact rural votes for the Mahayuti alliance, cotton farmers are now looking to the new government for relief. Many growers are holding back their cotton harvest, opting not to sell even at the government's Minimum Support Price (MSP) centers, in anticipation of a potential bonus announcement once the new cabinet assumes office.
The BJP's election promise to raise soybean MSP from the current ₹4,892 to ₹6,000 has fueled hopes of similar measures for cotton, though no formal announcement has been made.
Beyond political assurances, farmers are also banking on practical factors such as reduced national cotton yields and rising global prices. Currently, cotton has an MSP of ₹7,521 per quintal, while private market rates hover between ₹7,000 and ₹7,200. Farmers hope that government intervention, possibly through a bonus declaration during the winter session of the legislature, could push prices to at least ₹8,000 per quintal.
MSP is designed to stabilize prices when market rates fall, often prompting private traders to align their offers with the government-set baseline. However, many farmers feel the current MSP does not ensure a reasonable profit margin.
At Pandharkawda, cotton grower Gajanan Singedwar shared his perspective: "Yes, the hope for government aid is definitely a key reason why I’m not selling cotton, even at MSP centers."
As the new government prepares to take charge, farmers await decisions that could significantly impact their earnings and livelihoods.
