Many cotton farmers in Punjab are struggling financially as a large portion of their crop is being sold for less than the government-set Minimum Support Price (MSP). Kheta Ram, a farmer from Abohar, shared his distress. He leased land to grow cotton, hoping for good returns. However, he sold his crop for Rs 5,151 per quintal, significantly lower than the MSP of Rs 7,710 per quintal for his type of cotton. This resulted in a loss of Rs 2,559 per quintal, making him consider switching back to wheat and paddy cultivation, which are guaranteed MSP crops.
Kheta Ram’s situation is not isolated. Official data from Punjab shows that a staggering 80% of the cotton purchased so far has been sold below the MSP. Across districts like Fazilka, Bathinda, Mansa, and Muktsar, out of 6,078 quintals of cotton bought, 4,867 quintals fetched prices between Rs 4,500 and Rs 5,900 per quintal, well below the government’s support price.
The main reason for this crisis is the delayed start of procurement by the government agency, the Cotton Corporation of India (CCI). Until the CCI begins its operations, private buyers, including cotton ginners and traders, are the only ones purchasing the crop. As of now, 11,218 quintals of cotton have arrived in the state’s markets.
This year’s cotton harvest has been particularly challenging. Cotton was planted on 1.19 lakh hectares in Punjab. However, devastating floods in August and September damaged the crop on 12,100 hectares. Even in areas not directly hit by floods, the cotton crop suffered from high moisture content due to the unseasonal rains.
Dr. Bhagirath Chaudhary from the South Asia Biotechnology Centre, an organisation working to promote cotton farming, explained that the floods weakened the cotton fibres and increased moisture levels beyond the acceptable limit of 8%. This lower quality of cotton is why private traders are offering very low prices. His organisation has urged the CCI to start purchasing cotton immediately to help farmers facing financial hardship.
Farmers are voicing their concerns. Balkar Singh, a farmer from Mansa and a leader of the BKU Ekta Dakaunda farmers’ group, reported that farmers in the Mansa mandi protested recently. Private buyers were offering prices ranging from Rs 5,300 to Rs 6,800 per quintal. He stressed the need for the government to ensure MSP purchases for cotton, similar to the system for wheat and paddy, especially when the CCI is not active in the market.
Rajnish Jain, a commission agent in Maur, noted that the high moisture content in the cotton due to untimely rain has made traders hesitant to offer higher prices. The current situation leaves many cotton farmers in Punjab facing significant financial losses, prompting calls for government intervention and a more reliable procurement system.