As the marketing season for the rabi season begins, the issue of cottonseed pricing has cropped up again in Andhra Pradesh. The seed industry is pitching for a raise of Rs 120 for a packet of 450 gm of Bt cottonseed. It has asked the State Government to fix the price at Rs 1,050, keeping in view the rising cost of production.
A decision by the Andhra Pradesh Government holds the key as it is considered to be a bellwether. Generally, other cotton-growing States take a cue from Andhra Pradesh while deciding pricing in their backyard.
The Andhra Pradesh Government has begun the consultation process with stakeholders such as seed industry representatives, farmers’ bodies and non-governmental organisations as it does every year ahead of the marketing season.
“They have not considered our requests earlier and there was no increase for some time. The cost of production has gone up significantly and it is difficult for us to sell at last year’s prices,” a representative of the association, who did not want to be named told
The farmers’ organisations, however, are saying that there is no case for increase in prices. “They have promised to give Rs 290 to seed producing farmers but are giving about Rs 200 only. It is not at all remunerative for them,” said Andhra Pradesh Rythu Sangham Vice-President Bharat. He demanded that the companies reduce the price and not seek a raise. He also asked the Government not to consider any raise.
Cottonseed companies in the country witnessed a glut last year. They were saddled with eight crore packets of seed against a demand of about four crore packets.
A Government source hinted that there will be no price hike. “This is an election year and we don’t expect a raise this year. The demand for cottonseed has come down last year. We expected a requirement of 1.25 crore packets in the State. But about 30 lakh packets remained unsold,” the source said.
kurmanath.kanchi@thehindu.co.in