Gadwal, Telangana is facing a challenging start to its cotton buying season. The Cotton Corporation of India (CCI) has not yet opened its purchase centers, which is causing problems for local farmers. Without CCI’s presence, traders and middlemen are setting low prices for cotton. Although CCI issued tenders twice for processing tasks like cleaning and ginning, no local mills took part. A third tender round is now in motion.
The Telangana Cotton and Ginning Mills Association disagrees with new rules for processing cotton. Mill owners argue that these changes are financially burdensome and have asked the government to reconsider.
Every year, CCI sets up buying centers after finalizing these tenders. This typically includes places like ginning mills and market yards, where cotton is bought based on quality to ensure farmers get the best price.
CCI’s current rules state that cotton with more than 12% moisture is not eligible for purchase, a reduction from the previous 16% allowance. The support price is ₹8,110 per quintal for long-staple cotton and ₹7,710 for medium-staple. Incentives are available only if moisture content is under 8%. For moisture between 8% and 12%, prices are adjusted accordingly.
Mills must conduct frequent quality checks on cotton lint, shifting from monthly to every few days. The standard for ginning wastage has been cut from 1.70%. Mills are again categorized into L1 and L2 for procurement, a system previously paused. Infrastructure like roads, weighbridges, and cameras must now meet strict standards.
This season, cotton was planted on 43.29 lakh hectares in Telangana, with an expected yield of 24.70 lakh tonnes. Due to CCI’s delays, traders are buying cotton from farmers at low prices, often between ₹5,000 and ₹6,000 per quintal, far below the support price of ₹8,110.
Recent heavy rains have decreased yields by 30-40%, pushing many farmers into debt. Without proper storage or infrastructure, farmers are forced to sell at lower rates. Experts warn that if CCI doesn’t start buying soon, most cotton will be sold to middlemen. Even if CCI later offers the support price, intermediaries, not farmers, will benefit.
The Telangana government has been working to resolve this issue between CCI and the mills for two months. Agricultural Minister Tummala Nageswara Rao has sent officials to Delhi to speed up a solution. The deadline for the third tender round is October 8. If resolved, buying could start within a week.
Farmers and union leaders are pressing the government to quickly establish CCI buying centers to ensure cotton is bought at the support price, securing the livelihood of the state’s farmers.
