N Chandrababu Naidu, Chief Minister, Andhra Pradesh has urged Central Government to address the cotton procurement issues in the state. CCI officials are intentionally refusing to buy cotton stock from the state’s farmers to benefit private buyers, allege farmers, Naidu alleges.

The Corporation has set up around 60 procurement centers at ginning mills and 11 more at market yards, but procurement levels remain lower than anticipated due to a high number of rejections.

Cotton Corporation of India (CCI) has refused to procure cotton stocks from farmers in Andhra Pradesh, citing high moisture content. The Corporation’s move is leading to middlemen and private cotton traders purchasing the rejected produce at significantly lower prices, resulting in heavy financial losses for the farmers

Faced with CCI’s rejection, many farmers are selling their cotton to local traders at discounted prices, unable to bear the transport costs of taking unsold produce back home. The Central Government had promised to procure cotton at Rs 7,521 per quintal this season. However, private traders are buying the rejected stock at just Rs 5,000 to Rs 5,500 per quintal, causing farmers to lose Rs 2,000 to Rs 2,500 per quintal.

K Atchannaidu, Agriculture Minister has urged the CCI to expedite the procurement process without causing further hardship to farmers. Naidu has already brought the issue to the attention of Giriraj Kishore, Union Agriculture Minister, requesting immediate action.

In recent years, strong global demand for cotton had kept the CCI on the sidelines, as private players snapped up over 90-95 per cent of the crop at prices higher than the Minimum Support Price (MSP) set by the government. Cotton farmers benefited significantly, with market prices reaching Rs 10,000 to Rs 12,000 per quintal. However, a sharp decline in prices to around Rs 5,000 per quintal this season has forced CCI to step in, only to disappoint farmers with mass rejections.

Pasam Ramarao, District Secretary, CPI (M) has accused CCI officials of working under pressure from private exporters and dealers. Their refusal to buy the stocks indicates a bias towards private interests at the expense of struggling farmers. In response to the growing concerns, Pemmasani Chandrasekhar, Union Minister for Rural Development, has urged officials to be more lenient in their procurement. Despite these appeals, CCI officials maintained that they are strictly adhering to the procurement norms set by the central government.