Pvt players in Punjab buying cotton way above MSP
Sameer Singh
Tribune News Service
Bathinda, January 9
Cotton farmers in Punjab are elated over private players making purchases way above the minimum support price (MSP) this season.
While the Cotton Corporation of India (CCI) is buying cotton at Rs 5,665 (the MSP for premium quality is Rs 5,725), private players have started making purchases at Rs 5,900 per quintal.
High demand
- The MSP for premium quality
is Rs5,725 per quintal
Advertisement Pvt parties making purchases at Rs5,900 per quintal
Experts attribute it to the rise in cotton demand globally
The CCI made a record purchase (27.50 lakh quintals) in the initial few months but it’s the private players who are dominating the show now. They have purchased 5.5 lakh quintals so far. Neeraj Kumar, GM, CCI, Punjab said: “Owing to high demand, cotton prices in the international market have soared. Also, traders at times store raw stocks and wait for the prices to rise further to earn handsome profits.”
Mohan Singh of Chahal Spintex Ltd, Kot Shamir, Bathinda, who bought cotton at Rs 5,880 per quintal, said: “Unlike the last season, the CCI has made bulk purchases.
To meet the increased demand, we are making purchases way above the MSP.”
A section of farmers is holding on in the hope that the prices will increase further in the coming weeks. Resham Singh from Shergarh village said the government needed to increase the MSP as input costs had risen manifold. Sarup Singh, general secretary, BKU-Lakhowal, was of the opinion that if the CCI was to compete
with the private players, “it must raise the MSP”.
