Low MSP: Indian cotton farmers prefer private traders to govt.

MUMBAI (Commodity Online) : With private traders offering more money, Indian farmers in the state of Maharashtra prefer raw cotton to be sold to them rather than government procurement agencies offering low MSP (Minimum Support Price).
Cotton in Ralegaon market in Maharashtra was procured by private traders for Rs 5,050 per quintal on Monday. This is envisaged to go up to Rs 6,000 per quintal this year even as the State government is willing to shell out only Rs.3500 in MSP.
This measure of government completely ignores the seething global demand of cotton.
Ralegon is having many advantages and farmers from far-away places are flocking to the place where the price is relatively stable, weighing systems impeccable and payment prompt. There are seven ginning factories in the region and an excellent collection network.
Over 2.7 lakh quintals have been procured from Ralegon alone and another 1 lakh quintals are expected to arrive in the near term.
Mean while, export deadline of cotton has been extended to March 11 by Central govt. though the export cap has not been revised up or down and currently stands at 55 lakh bales.
If 'fadtar' (low quality cotton) can also be allowed to harvest, then farmers will see enhanced revenue.
Two years back, Vidarbha region was notorious for farmer suicides attributed to low prices and crop failures.

(Source: http://www.commodityonline.com/news/Low-MSP-Indian-cotton-farmers-prefer-private-traders-to-govt-35727-3-1.html)