As a result, about 12 lakh bales of cotton have been lying with the farmers, who are among major producers of cotton in the country.

The Andhra Pradesh Cotton Association, a voluntary organisation championing the cause of cotton farmers in ensuring the supply of genuine seeds and pesticides, is of the opinion that the market cess on cotton seed, obtained as a by-product, had become an added burden on the already suffering cotton farmers, as it was passed on to the farmer by the traders.

The Association secretary, Mr Kandimalla Nageswara Rao said a levy of one per cent cess on raw cotton would amount to Rs 25 per Rs 2,500, which is the estimated prevailing rate of raw cotton, the additional levy on cotton seed causing a total burden of Rs 52.10 per quintal of processed raw cotton on the farming community.

''The Andhra farmers who committed suicide in large numbers due to unremunerative prices which led to huge losses in the previous years, were only beginning to heave a sigh of relief, when they would be able to get higher prices in the range of Rs 2,200 to Rs 2,800 per quintal this year.

However, they may suffer again with the burden of additional levy which would be passed on to them by the traders,'' he noted. Through the cotton production in Andhra Pradesh this year was estimated at 22 lakh bales by the trading community, the official estimates of the cotton advisory board quoted by the Cotton Corporation of India (CCI), put the production at 27 lakh bales weighing 180 kg each.

``The cotton production increased mainly due to improved per acre yield despite fall in cropped area this year,'' Mr Rao said.

Fresh arrivals of cotton to the market has stopped during the last eight days, follwing the closure of the ginning mills. However, a solution to the problem was expected to arrive shortly, as talks were being held with the director of marketing of the state government, he added.

Meanwhile, traders and the farming community are planning to approach the Supreme Court, following the state high court's ruling which upheld the government's decision to levy the cess on cotton seeds, against the farmers' contention that levying cess on a by-product was unjustifiable.

A CCI official said cotton stocks from Orissa, Karnataka and even Maharashtra was being brought into Andhra Pradesh, due to higher rates prevailing in the market.

The CCI, which normally enters cotton markets to purchase cotton to maintain the price level above the Centre's minimum support price, has purchased only 41,000 bales so far this year, because higher prices was being offered by the traders, he added.