The Hindu : Andhra Pradesh News : Cotton Corporation of India likely to take up commercial crop purchase

Online edition of India's National Newspaper
Saturday, Sep 15, 2007
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Andhra Pradesh

Andhra Pradesh

Cotton Corporation of India likely to take up commercial crop purchase

S. Harpal Singh

‘Private traders might set up downtrend in price taking advantage of huge arrivals’

Corporation is preparing to process 2 lakh bales
30 units given consent for using their facilities

ADILABAD: The Cotton Corporation of India (CCI) may take up commercial cotton purchase besides its minimum support price (MSP) operations this year considering the factors that are likely to influence the market.

In Adilabad district, where a bumper harvest is expected thanks to favourable climate, the Corporation was preparing to enter market early and end up processing 2 lakh bales against last year’s 1.26 lakh.

In just about a month’s time the 16 agriculture market committees in the district will see arrivals in large quantities.

Observers foresee private traders taking advantage of the huge arrivals and setting a price downtrend unless the CCI starts purchasing from day one.

Stable price

“Preference for Bt variety of cotton will make it imperative that cotton will arrive from all sides in very large quantities in the first two months. CCI being in the market will help keep the price stable at over the MSP,” opined an officer in the Agriculture department.

More to follow suit

“Already 30 cotton processing units have given their consent for allowing us to use their facilities. Some more will follow suit in the next few days.

We will also derive the advantage of the increase in processing capacity this year as many mills have gone in for modernisation and new mills being opened,” revealed CCI Adilabad Branch Manager P.T. Pillewar, about the preparations for the coming season.

By the time the Corporation takes up its operations, more than 60 per cent of local arrivals would have been registered that gives the private traders enough time and material to capitalise.

“Our officers will be there at every market yard monitoring the situation in order to react quickly when needed”, added Mr. Pillewar putting to rest the issue of unrest among farmers .

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