Amid reports about the import of 22 lakh bales of cotton and the consequent concerns about the potential fall in the prices of the domestic cotton, the Maharashtra Congress has urged Prime Minister Narendra Modi to impose immediate ban on the import of cotton and direct the Cotton Corporation of India (CCI) to purchase cotton at the guaranteed price.
In a letter written to the Prime Minister in the run-up to the November 20 State Assembly polls, Maharashtra Congress chief Nana Patole said that despite Maharashtra - which is home to over 40 lakh cotton farmers, having produced substantial cotton this year, the reports of the country importing 22 lakh of cotton had sparked concerns among the cotton farmers about the potential fall in the domestic cotton prices.
"This import, combined with 11 lakh unsold bales held by the Cotton Corporation of India (CCI), threatens to destabilise the cotton market and undermine the livelihood of farmers of Maharashtra," Patole stated.
Patole said that currently, the cotton was being sold anywhere from Rs 6,500 and Rs 6,600 per quintal, which is below the Minimum Support Price (MSP)_ of Rs 7,122 per quintal of cotton.
He said that owing to this low market price, farmers had so far chosen not to sell their produce, in the hope of a better price in the near future. "However, the impending import of 22 lakh bales threatens to lower demand for locally produced cotton, suppressing prices further and negating any chance of an increase, the State Congress chief said.
"Maharashtra produces approx. 80 lakh bales of cotton every year. A fresh influx of 22 lakh bales, i.e., over one-fourth of the overall cotton produced in our state, will create severe market imbalance and destabilise the cotton economy of Maharashtra," Patole said.
Explaining the gravity of the situation, Patole said that the cotton farmers were already vulnerable, facing challenges from low prices, high input costs due to 12 to 18 percent of GST imposition on agricultural inputs and unseasonal rains.
"Maharashtra has faced severe crop damage, with over 19 lakh hectares being damaged due to the retreating monsoon and unseasonal storms. The compensation announced by the Centre remains on paper, while the PM Fasal Bima Yojana only serves to fill the coffers of the insurance companies," he said.
The State Congress chief said that in the current precarious situation, "the Centre's failure to curb huge amounts of cotton imports, despite CCI's existing stockpile of 11 lakh unsold bales, shows that the Centre is more concerned about traders' profit margins over the survival of the hardworking farmers of Maharashtra".
