Search Button
Net Express Sections
The Indian Express

The Financial Express


Latest News

Express Investment Week


Market Indicators


Screen

Express Computers

Travel & Tourism

Advertisers Forum




Information Technology

Drumbeat: Ad Buzzaar

Astrosurf

Eco-India

Dr Know

Screen: The Business of Entertainment


Career India

Business Forum

Match Maker

Express Properties


Corporate

Economy

Expressions

Markets

Leisure

 

Monday, April 20, 1998

State cotton purchase plan hits new high 

MD Dewani  
April 19: Payments to cotton cultivators in Maharashtra under the state government's monopoly cotton procurement scheme reached an all-time high of Rs 2,917 crore in the 1996-1997.

The procurement topped 149.82 lakh quintals in unginned cotton as against the previous season's 130.95 lakh quintals. The aggregate payments to farmers in the previous season was Rs 2,539.81 crore. In the current season, however, procurements are expected to be sharply lower as the crop has been damaged to a great extent due to heavy rains in November and December last.

The scheme seeks to protect the interests of cotton cultivators in the state through guaranteed prices even at times of a bumper crop. Profits resulting from even the marketing of lint as well as cotton-seed are passed on to the farmers. The Maharashtra State Cooperative Cotton Grower's Marketing Federation (Mahafed) -- which operates the scheme on behalf of the state government -- absorbs the entire produce in the state and cultivators are hence protectedagainst any sharp fall in prices when arrivals are more. This, indirectly, helps farmers of other states too. The scheme, introduced in 1972, has been extended from time to time. Its present two-year term expires on June 30, 1998. The state government is, however, confident that its demand for a 10-year extension of the scheme will be conceded by the centre.

Once the scheme is extended on long-term basis, it will be possible for the Mahafed to take the necessary decisions on long-term planning involving the establishment of modern ginning pressing units, construction of godowns as well as additional infrastructure.

It will also be possible for it then to take up seed extension programme on a substantial scale by setting up separate infrastructure so that the yield of cotton can be raised.

Besides, long term extension of the scheme will make it possible to regulate production in accordance with the market requirement of each variety.

The Mahafed will be able to plan its sales on laboratory testingbasis by setting up testing facilities in each zone. Special attention to the quality of cotton is considered necessary if we have to build up our cotton exports.

Until now the state government has been helping in sustaining the scheme. It is however, felt that once it is placed on long term footing, it will be possible to make it financially self reliant. At present the scheme is extended on short term basis, it has not been possible to take measures to further improve and strengthen the scheme.

If the scheme has survived all these years, despite pressure on the Union government from various interested groups to terminate the same, it is because under the scheme cotton production and productivity have gone up substantially and cotton cultivators in whose interest the scheme is being operated are strongly in favour of its continuation. With the new coalition government in power at the centre, the chances for the scheme being placed on a long-term footing are considered quite bright.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.



Syndicate Bank

Pidilite

Bank of India

 

Touchwood: Make Big Money Thru' Legitimate Means