The Hindu : Andhra Pradesh News : Farmers stall transactions at market

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Tuesday, Oct 14, 2008
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Andhra Pradesh

Andhra Pradesh

Farmers stall transactions at market

Staff Reporter

Cotton growers of Khammam annoyed over low prices offered by buyers

-PHOTO: G. N. Rao

Exasperated: Cotton farmers trying to stall transaction at Khammam cotton market on Monday.

KHAMMAM: The cotton season began on a disappointing note on Monday as the growers who arrived with the stocks of their first picking, encountered hostile market conditions.

With the cotton prices falling suddenly, buyers offered low prices much to the annoyance of the farmers. They went berserk and stalled the transactions for over four hours forcing the police and market officials to intervene.

The market, which reopened after the Dasara holiday, saw cotton arrivals of the order of about 14,000 bags. Much of it was fresh from the fields and had 17-17 per cent moisture levels.

The new cotton was offered only Rs. 2,650 a quintal in open auction, against Rs 3,500 last week. Irate farmers questioned the tight-fisted attitude of the traders.

Verbal exchanges

They threw away the weighing machines and tried to storm into the information centre and the market committee office seeking the intervention of the market committee chairman and officials.

They had a verbal confrontation with the Sub Divisional Police Officer Rameshaiah.

The marketing officials and the police finally had talks with the two sides and hiked the price by Rs 100. Joint Director Diwakar attributed the glut to a fall in the international prices from Rs. 27,000 to Rs. 22,000 a bale.

Losses feared

Meanwhile, the Cotton Corporation of India (CCI) is ready to enter the market any time. But the moisture rate was beyond the permissible limit of eight per cent.

The farmers were expected to dry the cotton stocks before moving it into the market.

The farmers claim that the drop in the price would put them to a heavy loss.

The labourers were charging Rs. 3 a kg as picking costs. The transportation of labourers to the cotton fields was also costing Rs 10 per head. It would be yet another crisis if the farmers failed to get a remunerative price, A.Vijay Gopal Reddy from Chimmapudi village, said.

Another farmer, Ajmira Bandilal, wanted the CCI to open its purchase centres immediately. He alleged collusion of traders and officials.

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