COURTESY HT DEC 27
CCI’s decision of cotton purchase ceiling puts state agencies in a fix
Centres at Bathinda, Abohar, Mansa and Maur will now have a maximum purchase limit of 1,100 quintals of lint per day
Workers of a private agency weigh cotton during procurement at the grain market in Bathinda on Saturday. SANJEEV KUMAR/HT
Vishal Joshi
vishal.joshi@htlive.com
BATHINDA : Amid the peak purchase season of cotton in Punjab, the Cotton Corporation of India (CCI) has suddenly decided to go for staggered purchase by restricting buying only 2,500 bales or 12,500 quintals of lint per day.
According to a circular issued on Saturday, the central agency has fixed purchase limit at each of its 22 purchase centres in seven districts of the Malwa belt. Earlier, there was no purchase ceiling by the CCI or private players.The new directive has put the state agencies and cotton growers in a fix as farmers may be forced to hold their crop till September next year before selling it to the CCI. The average daily arrival of cotton in different districts remains 50,000 quintals whereas the new order limits reduced it by almost four times.
As per new order, major purchase centres at Bathinda, Abohar, Mansa and Maur will now have a maximum limit of 1,100 quintals of lint. Official sources said earlier the daily average purchase at the mandis was up to 10,000 quintals.
The CCI has fixed purchase to only 150 quintals at Goniana, Talwandi and Bikhi purchase centres. Punjab State Agricultural Marketing Board secretary Ravi Bhagat said the decision is a cause of concern and he would take up the matter with the central authorities.
“I have yet to receive the official communiqué in this regard. The CCI did a commendable work this year by purchase a high volume of cotton since October. But staggered purchase or ceiling on purchase is worrying,” said the official.
Of nearly 43 lakh quintal cotton production in Punjab in 2019, the CCI had purchased 17.5 lakh quintal. Rest of the cotton was purchased by private buyers below MSP. According to PSAMB data, till December 26, total of 26.71 lakh quintal kharif crop was brought by the farmers to various purchase centres of the cotton-growing belt in south Malwa. For the same period in 2019, the arrival was 38.38 lakh quintals.
As per the official statistic, CCI has bought 21.09 lakh quintals to date and this year Punjab expects a bumper crop of 50 lakh quintal.
According to the notification (HT has a copy), the CCI authorities say the absence of a daily limit may lead to law and order situation in the mandis as this year there has been an unprecedented heavy arrival of cotton.
CCI assistant general manager and Punjab in-charge Neeraj Kumar said all cotton-growing states are covered under the new rule to keep the exceptional arrival of cotton safe from fire.
“Owing to the pandemic outbreak, the private players are hardly buying any produce in the market whereas CCI’s purchase work has increased by almost 400% if compared with last season to date. The CCI has made elaborate arrangements to buy almost entire cotton production. We have conveyed to the Punjab Mandi Board officials to regulate cotton arrival in accordance with purchase ceiling fixed for each mandi,” said Kumar.
Official sources said this year Punjab has seen a panic arrival of cotton due to apprehension that CCI may withdraw from the market.
However, CCI’s Neeraj said like previous seasons, purchase season would continue till September (CCI starts purchase from October 1) and CCI is committed to buying the produce at the minimum support price.