Bathinda, October 8
To avoid exploitation cotton growers have started holding back their produce after the prices of the same fell down sharply due to low demand on one hand and absence of private buyers and government agencies in the markets.

Cotton arrival, which started picking up after the season started as the opening prices were remunerative, came down drastically today after a section of growers started taking back their produce to their respective dwellings from grain markets.

Information gathered by TNS revealed that growers did not stop bringing their produce to the markets even when the prices of narma and desi varieties were fluctuating between Rs 2,000 to Rs 2,300 and Rs 2,000 to Rs 2,100, respectively. However, they were disappointed when the prices of the two varieties fell down further.

Hoping that prices in the markets would improve in the coming weeks, a large section of growers have decided to hold back the produce. This has affected the arrival of cotton in the markets.

The arrival of cotton came down by about 2,000 bales in the past two days as on Wednesday the arrival of cotton in the markets of north India was 12,000 bales and the same came down to 10,000 bales today.

Mr Amrit Pal Singh Brar, president, Punjab Young Farmers Federation, said the growers had been left with no option but to hold back their stocks so that they could earn more when the prices go up.

Mr Ashok Kapur, president, Northern India Cotton Association, said due to the absence of private buyers and government agencies the markets were facing glut-like situation and farmers were forced to take back their produce

He said the demand was low presently because of the fact that only local textile mills were purchasing the same and that too in limited quantity.

The textile mills owners did not want to stack stocks as they would have to invest heavily now despite the fact that raw cotton would be available to them till April 2005.