The Hindu Business Line : Rising input costs hurt Yavatmal’s cotton farmers

The green fields studded with white cotton-balls in Tendoli village of Yavatmal tell no tales. But that is not so for a small group of farmers gathered at one of these fields, who live as they do, under the shadow cast by farmer suicides in this region of Maharashtra.

Locked in animated conversation, they share their experiences of planting genetically modified Bt cotton, the increasing yield it gives them, and the difficulties they still face with getting finance.

There is an increasing acceptance for Bt cotton, says Mr Someshwar Nagose, who plants transgenic (Bt) cotton.

He saves about Rs 2,500 on pesticide that he would have had to spray on traditional cotton, he says, referring to the Bt cotton’s inbuilt ability to fight three bollworms that attack cotton.

Monsanto’s Bollgard

Monsanto’s Bt cotton was the first biotech crop to get regulatory approval for commercialisation in the country in 2002 and the seeds were sold to local farmers by Mahyco Monsanto Biotech (India) Ltd (MMB), who sub-licensed the technology to 23 Indian seed companies.

MMB is a 50:50 joint venture between Mahyco and Monsanto Holdings Pvt Ltd. Bollgard has been adopted on 14.4 million acres in 2007, about 63 per cent of India’s cotton acreage, the company said.

Cotton farmer Mr Ram Pawar says despite farmers getting better yields of about four quintals more per acre from planting Bt cotton, compared with traditional cotton, they still are not beyond the clutch of private moneylenders.

Farmers spend about Rs 6,000 per acre on fertilizers, labour, etc, the small group of farmers told Business Line, adding that crop loans of about Rs 3,000 from banks at about seven per cent interest is not enough to support input costs. Erratic power supply and irrigation facilities further add to the problems, says Mr Ashok Nilawar.

On a good yield from Bt cotton, farmers make profits of about Rs 5,000 per acre, they estimate, but with rising input costs, the bank support is not sufficient, they say. The farmer then approaches private money-lenders to support his expenses, says Mr G.N. Sarodhay.

Also, farmers may use the loans for different reasons and if they are unable to repay the loan, they cannot approach the bank again. And this leads the farmer into a maze of debt he cannot get out of, the farmers observe, when asked why farmers in the region are driven to take their lives.

At Yavatmal’s Jawala village, Mr Surendra Choudhury also says Bt cotton gives him better and quicker yields that allow farmers like him to plant a second crop like soya.

But complaining of rising input costs, Mr Rajendra Kale, a teacher who also does farming, asks the Government for more support to prevent farmers from going to private lenders.

Improvements

Agri-industry representatives, however, say the situation has improved with the Government cracking down on private money-lenders and asking banks to be more farmer-friendly.

Such measures, along with new agri-technology, like Bollgard, can help put more money in the hands of farmers, observes Mr Bipin C. Solanki, Monsanto’s Director-Industry Affairs.

More Stories on : Cotton | Credit Market | Bio-tech & Genetics

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