THOOTHUKUDI: The withdrawal of import duty on cotton bales will ruin the prospects of domestic cotton farmers, say cotton producers.
The Union Ministry of Finance, on April 14, effected exemption for the Agriculture Infrastructure and Development Cess and Basic Customs Duty (BCD) for the import of cotton, allowing cotton bales import at zero duty until September 30, 2022. The announcement has given relief to the textile industry, which has been facing an acute shortage of raw material.
However, the decision has not gone too well with the farmers. Southern dryland farmers association director Navaneedhan said the cotton farmers have been getting `10,000 per quintal for the past five months, due to scarcity of cotton. "It is the best price ever after the nation's independence as they used to get Rs 4,000 to Rs 5,000 per quintal," he said.
The price of the cotton lint has witnessed a hike only because of the reduction of the yields due to the excess rainfall during the last monsoon, he said, adding that an acre of cotton plants had yielded 9 to 10 quintals instead of the normal 20 quintal.
"Though the price had increased, it is not profitable as the farmers had lost 50% of the yields, and the current price is just balancing out their losses," he pointed out.
Commenting on the withdrawal of import duty for import of cotton bales, Navaneedhan said it has only crashed down the market-driven price for cotton lint. The traders had reduced cotton lint prices to Rs 7,000 per quintal at some pockets since the day the announcement came, he said.
Navaneedhan further said that cotton, a six-month cash crop, is an expensive plant. The area of cotton cultivation has been on a declining trend in Tamil Nadu, as the cotton farmers do not get a decent remuneration. The State and Union government must work out a Minimum Support Price (MSP) of Rs 10,000 per quintal for cotton lint so that the farmers would get a decent price, he further said.