Production breaks records of past 64-years in region
Sendhwa: The cotton production and its trade level achieved new heights this year and broke the records of last 64 years. The countrywide production of cotton this year is estimated as 3 crore 75 lakh bales (each bale weighs 170 Kg). It means around 10 lakh bales were produced more than the last year. This much increase is also a record of the period beginning from the year 1950. The farmers are happy enough and regained confidence in this major crop of the Nimar region.
However, the traders also have received a steady margin in the cotton trade, but the downturn in the rates of dollar amazed the ginners, processors and traders too, they suspect that, if this diminishing trend will continue, than this season will not be so much profitable for them, as it was appearing in the initial part of the season. The big traders, who have stored heavy stocks of cotton, especially of high quality cotton are suspecting loss and are hoping that, in the closing part of the season some higher rates may be obtained for their stocks, which can give them satisfactory margin.
According to the records of Cotton Advisory Board (CAB) and the information provided by the vice-president of MP Cotton Processors and Traders Association Kailash Khandelwal, the per hectare productivity of cotton has also increased. According to him, in this season of 2013-14, the cropping area of cotton was 115.53 lakh hectare, which was little less than the cropping area of 2012-13, that was 119.78 lakh hectares. Since, this year the total production has increased to 3.75 crore bales, from the last year’s total production of 3.65 crore bales; hence, the productivity has shown an increase of 552 Kg. per hectare from 518 Kg. per hectare. Thus, from the farmer’s point of view, it was a good season.
Signals for bright future for cotton producers and tradersKhandelwal also said that, the rates of cotton also remained steadily at a reasonably higher level this year, except in the end part of the season. The recent downturn also occurred because, usually arrival of cotton closes in April, but this year, it continued to arrive till this time i.e. in the end of May and expectedly it will continue in the first half of June too.
He said that, the rates of good quality cotton and the Y-1 quality remained between Rs. 4800 and Rs. 6000 per quintal. The rates of best quality known as DCH quality remained varying between Rs. 5500 and Rs. 6500. The rates of cotton after primary hand processing were also remained at higher level.
In comparison to the last year, these rates were higher by Rs. 500 per quintal; hence, the farmers and the traders both have earned a good profit. Khandelwal happily mentioned that, this year the demand in good quality cotton and in the primary processed cotton also remained high and the quality obtained from the farms of region was also good. These are all very good sign for the farmers as well as traders of cotton.
The arrival of late variety of cotton known as ‘Fardal’ cotton in the Mandi was also very good, because of the rains occurred in November –December, the late varieties gave higher and quality yield. Due to this, the trading season also last long. However, the rates of ‘Fardal’ cotton are between Rs. 3500 and Rs 4200, which are higher than the expectations of the ginners. At present, the ginners are processing it with some loss, to remain in the trade. High expectations from the new government Kailash Khandelwal added that, the business community has welcomed the new government everywhere and they have many expectations from the new government.
As they have said that, there will be a ‘single tax system’, so this may give a big relief to the business people and then they will be able to concentrate on excellence in their business. Secondly, they expect the stability in the rates of cotton, rupee and dollar. Thirdly, from the state government, they expect relief from the Mandi Tax, as it has given in the entry-tax by including it in the list-1.