Rainfall damages procured cotton worth Rs 225 crore
   Date :05-Jun-2020

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Staff Reporter :
 
Cotton Federation refuses to incur loss by procuring more cotton ‘under pressure’
 
 
As feared by the Board of Directors of Maharashtra State Co-operative Cotton Growers Marketing Federation in its meeting held a few days ago, the rainfall has damaged cotton procured and stored at various ginning and pressing factories. As per the preliminary estimates of the Cotton Federation, the loss is to the tune of Rs 225 crore. Anantrao Deshmukh, Chairman of the Cotton Federation, told ‘The Hitavada’ that rainfall since May 29 had resulted in the Federation incurrring loss of around Rs 225 crore. “Of the total loss, Rs 190 crore loss is of only cotton. Besides, we have incurred loss on account of damage to 7.50 lakh quintals of lint as its quality has been affected by 25-30 per cent.
 

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Further, around 70,000 cotton bales got wet and loss in this regard is pegged at Rs 7 crore to Rs 8 crore,” he said. Deshmukh said that this had happened as no one paid heed to the appeals of the Cotton Federation. “Despite our requests, there has been growing pressure for cotton procurement by way of starting new centres. No ginning of cotton has taken place for the past some period. Besides, at many places, though cotton procurement has started, there is not enough space for storing the procured cotton safely,” he rued. A few days ago, the Board of Directors of Cotton Federation had expressed unwillingness to incur loss by procuring more cotton ‘under pressure’.
 
The high-velocity wind and rainfall were likely to destroy the cotton procured and stored in ginning and pressing units not having sheds, the Board had added. Besides, it had pointed out, there was lack of adequate labour force at the factories. “Despite these factors, if there is pressure to start more centres for cotton procurement, Cotton Federation will not be responsible for the damage caused to cotton in the given conditions,” Deshmukh said. He stressed that Cotton Federation would continue with cotton procurement only till Cotton Corporation of India (CCI) continued procurement. “Cotton Federation stands by the farmers. We have only 140 workers.
 
At the start of the season, we had planned procurement at 40 ginning and pressing factories. However, due to demand during lockdown, we placed out staff also into field work and started procurement at 127 ginning and pressing units. Later on Agriculture Assistants also were trained to work as graders. At present, cotton is being procured at 166 ginning and pressing factories,” Deshmukh said. According to Deshmukh, before COVID-19 outbreak and subsequent lockdown, the federation had procured 54.03 lakh quintals of cotton from farmers. Cotton Corporation of India (CCI) procured 91.90 lakh quintals of cotton. As the minimum support price at which the federation and CCI procured cotton was lower than the market rate, farmers sold 170 lakh quintals of cotton to private traders.
 
However, due to lockdown, the market rate of cotton went below MSP and farmers wanted to sell cotton to CCI or Cotton Federation. CCI and its sub-agent Cotton Federation could not procure cotton owing to lockdown. Finally, after huge demand from farmers, the Government allowed CCI and Cotton Federation to procure from April 22. Since then, till June 1, CCI procured 18.28 lakh quintals, Cotton Federation has procured 17.23 lakh quintals, and private traders have procured 20 lakh quintals of cotton from farmers.