Cotton procurement collapses on confrontation with the COVID-19 crisis

It is May, a month before another sowing of the cotton crop in the fields. Tikaram Bhutapalle, from the Sadalapur village in Palam tehsil of Parbhani district, has a stock of cotton yield resting in the home, but no money in his hands yet. He is one of the thousands of farmers running out of money and facing trouble to get their crop sold this season. 

With the coronavirus induced lockdown affecting every sector, cotton-growing farmers from the drought-prone regions of Marathwada and Vidarbha are facing at risk of huge losses for not being able to sell their yield in the market. The new Kharip season of the cotton sowing will start in the first week of June, but the farmers have not sold even their last year’s yield yet.

The nationwide lockdown announced on March 24, has halted the procurement of the cotton crop by the Cotton Corporation of India (CCI) and its agent the Maharashtra State Cooperative Cotton Federation (MSCCF) which procures the cotton yield every year.

The dependence of farmers on the CCI and the MSCCF becomes especially crucial because of the absence of local private players and traders, who are themselves financially affected due to the lockdown. Other players who are operating have slashed the procurement rates to some of the lowest rates ranging from Rs 2800 to Rs 3000 per quintal, driving farmers to take a loss-making deal. However, the CCI and the MSCCF buy cotton from farmers at a minimum support price ranging from 4500 to 5050 per quintal. 

Tikaram shares his concern, “Not all farmers were aware of the start of registrations for selling cotton to the CCI and of when it ended. Let alone the other farmers who not aware of the application form and the online registration, even I don’t know it was announced." He further adds saying, “Those who have registered their details with the cotton purchasing centres started by the government are still waiting to get a call. I don’t know where to sell my kapas (cotton)”

What Tikaram mentions as registration, is a Google form shared by the respective Agriculture Produce and Marketing Committee, where farmers were asked to fill in the details to get registered to sell their cash crop. The committee would call farmers once their turn comes. The idea was to avoid gathering and maintaining social distancing within farmers and to also ensure that their produce can be procured. Usually, the token system is followed in all APMCs, but due to the COVID-19 outbreak, this registration system has been introduced.

'Till 25th March 2020 around 77.40% of the total kapas produced in Maharashtra had arrived in the markets and sold to the CCI and other private traders. At the time of the lockdown, around 22.60% of the cotton was yet to arrive. Out of this outstanding kapas, it is estimated that around 40% to 50% of kapas valued at approx. Rs. 2100 crore may be of FAQ grade and growers may wish to avail MSP rates due to traders not offering a better price in lieu of the pandemic situation...' claims the Ministry of Textiles, Government of India, in its official press release.  

The ground situation, however, tells a different story. Vithal Bangale working as a clerk in the Deulgaon Raja Krushi Utppan Bajar Samiti, (APMC) says, “We used to operate procuring with more than 90 vehicles per day before the pandemic affected our market yard functions and now it has fallen down to a low of just 20 vehicles. He adds, “In the present lockdown, the government rules need to be followed strictly. The social distancing norms should be followed otherwise we may not be able to procure the minimal vehicle allowed right now."

In Maharashtra, CCI made its entry during the cotton season of the year 2002-03, after the State Government of Maharashtra relaxed its monopoly procurement scheme and thereby allowed ginneries, traders and the CCI to purchase raw cotton from the farmers of the state. The Akola jurisdiction has got 35 procurement centres and 30 in Aurangabad taking the total tally of Maharashtra to 65. A premier organisation in the Public sector and engaged in marketing cotton, CCI calls itself a friend to cotton farmers and a dependable supplier of cotton to the textile industry.  

Other private ginning who procure the cotton across the state are facing labour crunch as most of the migrant workers with them have moved back to their homes, leaving the small and marginal farmers helpless and vulnerable to sell their cotton to smaller unruly private players.

Vithal Patole, a labourer working at the APMC, Deugaon Raja in Buldhana district, used to earn Rs. 200-400 before corona outbreak, now he earns Rs. 100-200 on alternative days considering the non-availability of work. He says, “I have been working here as a labourer to unload containers here at the APMC. This is a very bad time for all of us. The number of vehicles getting unloaded and weighed has fallen down to extreme low. We are finding it difficult to survive.” 

Vithal, a youth of 26, is aspiring to join the Police force someday. As he prepares for the exam, he also manages to work here at the APMC.

Deepak Daulatrao Dhulgunde from Sadalapur in Parbhani, comments on the snail pace procurement process of the cash crop across the state saying, “Here the cotton procure centres only allow 10 vehicles to enter into the market. We understand the importance of social distancing, but we also need to sell our cotton. The government should look into the matter.” He further says, “If the government cannot buy our produce then why not pay us crop loans as early as possible. When contacted, the bank staff has got no answer to the queries regarding new crop loans.” 

Deepak was preparing for competitive examinations for some time and last year decided to find his way in sowing the soil. Now worried for financial arrangements for the next Kharif season, he expects that the State Government would come to help farmers like him.

Dadasaheb, Another farmer from the Jalna district had filled up this Google form to register at the Partur APMC on 23rd April to sell his 16 quintal cotton produce. He has been waiting to get a call from them. 

The role and the function of the CCI continued to enlarge with the changing cotton scenario in the country. Now, the major role of the CCI is to undertake price support operations, whenever the market price of cotton falls below the minimum support prices, announced by the Government of India. 

Narayan Takale another farmer from Rohilagad village in Jalna District shares his concern, “I had registered for my cotton produce to be sold in a centre at Badnapur, but I have not yet received any notification. I hold 40 quintals of cotton in the stock and waiting for the call, but every day ends with no hope at all. He further adds, “I tried to call the Badnapur centre but the number was not reachable for the whole day. All farmers in the village are desperately waiting for any private trader to come and offer us at least Rs. 4000 per quintal.” 

When asked about the way procurement centres are working, Sopan Dhumal, an official from APMC, Partur, shared the details saying, “On an average, we procure the yield of 34 farmers each day. About 5737 farmers have registered in the Partur APMC till date. We accepted the registrations till 30th April only," and added, “We are trying our best to procure the maximum number of vehicles possible. We had started with five farmers a day in the beginning and now have reached to 35 vehicles daily.”

Tikaram Kondiba Bhatapalle owns 10 acres of non-irrigated land at Sadalapur in Parbhani. He says, “Private traders are offering Rs. 2800 for my yield, which is much less than the actual production cost that I have invested to produce this yield. To get the Minimum Support Price for my crop, I have the government procurement centre is the option, but we could not register in time and now there is no other way around.” He further adds, “This is not the first time that farmers are being exploited to sell their yields, but the coronavirus epidemic has worsened the situation. We don’t have any option other than to sell our produce at a very low cost and bear the losses or wait for things to improve and borrow from private money lenders by paying a hefty interest rate.”