Bhaskara Reddy of Avusanenipalle in Mahboobnagar district is a cottonseed producing farmer. Besides, he encourages others to grow the seed in the area, considered to be the best in the entire country for producing cottonseed.

But this year, he has decided to cut down the area to one acre from four acres he grew last year. “It’s not just me. Everyone in the village is going to reduce area. I think I can organise 10-15 acres against 60 acres last year,” he told Business Line over phone from his village.

Non-remunerative prices

A glut of cottonseed packets in the godowns of seed companies has resulted in the cascading impact. Andhra Pradesh grows the seed on about 40,000 acres every year.

Seed companies enter into agreements with farmers to produce the seed and give them financial assistance as they give them foundation seed. This generally happens 1-2 months ahead of the kharif season. The produce would go to the facilities of companies for processing and packing.

“They used to pay us ₹425 two years ago for 1,000 gm but reduced it to ₹360, while cost of operations has gone up significantly. We have stopped sowing in several areas as the price promised is not remunerative at all,” he said.

“They have reduced the price for us but continue to sell the seed at the same price (₹930) like last year for cotton farmers,” he said.

Bharat, President of the CPM-affiliated Seed Growers’ Association of Andhra Pradesh, said the acreage plummeted to 15,000-20,000 acres as companies shied away this year, citing huge inventories.

Huge stocks

The seed companies estimate a growth of up to 5 per cent in sales this year. But it is saddled with about 4 crore leftover packets of seeds. Sitting comfortably with sufficient stocks, representatives of companies have not turned up in the seed growing villages, leaving the farmers high and dry. “They are used to grow seeds and find no immediate alternative to shift,” he said.

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