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Gujarat farmers upset over delayed bonus announcement

Gujarat government recently announced 14 per cent rise in minimum support price (MSP) for cotton. The move is not welcomed by the farmers who were expected to benefit from the same. After losing recent local body elections to Congress in the rural areas, the BJP-led state government announced a bonus of Rs 110 per 20 kg on cotton to please the farmers.

However, even after getting the bonus, MSP would be Rs 920 per 20 kg, up to six per cent less than the market price of Rs 950-980. Also the government’s move is quite delayed since many farmers have already sold their cotton in the month of October, the beginning of the season. The state government's Rs 110 per 20 kg bonus would be above the Centre's MSP of Rs 810 for the cotton year (October-September) 2015-16. Union government had hiked its MSP by Rs 10 per 20 kg this year.

In September, Bharatiya Kisan Sangh (BKS), a farmers' organisation had asked for financial assistance for farmers in Gujarat. But now it is displeased since the announcement was made after farmers sold their produce at lower prices. According to industry sources, 40 per cent of the season's crop has already arrived in the market. Those who have holding capacity are expecting Rs 1,100 per 20 kg for raw cotton as there is a fear of crop damage due to pest.

Gujarat government will pay the bonus only on Cotton Corporation of India (CCI) procurement. Due to low MSP, the state-owned CCI has procured only 5,000 bales this year. Last year, CCI had purchased about 650,000 bales cotton from Gujarat.

Cotcorp.gov.in

 
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