The maiden digital initiative of the Cotton Corporation of India (CCI) to buy cotton on the MSP from the farmers registered on the ‘Kapas Kisan’ mobile app has evoked a lukewarm response from the growers in Punjab.
According to the government data, of the estimated 50,000 cotton growers across the state, less than 8% (3,700) have enrolled in the new system till October 31.
Officials attribute low enrolment to digital registration hesitancy among farmers, farm gate purchase by private players, and engagement of farmers in the ongoing paddy harvest phase.
CCI general manager Manoj Bajaj said on Friday that for the convenience of cotton growers, the registration date has been extended by two months, and farmers can now enroll themselves till December 31.
Earlier, the CCI had fixed the last date on October 30.
The new mobile app empowers farmers with self-registration, slot booking, and payment tracking.
“This app provides the facility of payment tracking by farmers - bringing greater transparency, convenience, and speed to the cotton procurement process. Farmers should bring the non-perishable crop of cotton within the prescribed moisture limits and get the best rates for their produce,” said an official.
CCI’s Bajaj said that the central agency has allowed Punjab farmers, who availed the subsidy scheme on seeds, can upload the relevant subsidy certificate for online registration.
A state agriculture official requesting anonymity said that about 50,000 farmers had availed the 33% subsidy on cotton seeds, and only a minuscule number have enrolled themselves in it.
Official sources said that CCI’s pan-India initiative is aimed at improving the purchase of ‘white gold’ and curbing malpractice, where traders used to buy cotton from farmers at cheaper rates and sell it to CCI at the MSP.
Since 2021, CCI has been buying cotton directly from farmers, eliminating the arthiyas or coming agents and making payment for the crop procured directly into the accounts of farmers through direct bank transfer or DBT.
CCI only enters the market when the private buyers pay less than the MSP. According to the Punjab Mandi Board data, around 1.21 lakh quintals of cotton arrived across the south Malwa districts to date, and 58% or 71,000 quintals was bought by the private players below MSP.
For the current rabi marketing season, the Centre has fixed ₹7,710 per quintal for medium staple length and ₹8,110 per quintal for the superior quality.
Officials of the state and CCI have attributed the lower rates for unginned cotton (raw crop that still contains seeds) brought to the market by the farmers with high moisture content and discoloration of the raw cotton bolls.
An official in Mansa said that a section of farmers is reluctant to share a one-time password (OTP) sent on their mobile phone due to fear of digital fraud.
Chief agriculture officer (CAO) of Fazilka, the largest cotton-producing district, Harpreet Kaur, said nearly 26,000 farmers had availed the cotton seed subsidy, but they are not eager for the digital registration.
“Farmers faced loss of cotton crop to untimely rains. In several areas of the Abohar belt, boll rot, a fungal disease causing discolouration, is also reported. During the contact programmes, farmers are telling our teams that they are unhappy with the poor season. Moreover, they are showing interest in selling the produce to traders at the farm gate even at lower rates than to stock the crop and try for better prices to save on time and transportation cost,” she added.
Bathinda CAO Harbans Sidhu said that a special drive is underway to encourage farmers to help in enrolling with the digital intervention and sell the crop to CCI.
GFX
White gold losing sheen
50,000
Farmers availing 33% subsidy on seeds
3,700
Farmers registered on CCI’s Kapas Kisan app
1.21 lakh quintals
Total arrivals
1.20 lakh quintals
Purchased by private players
71,000 quintals
Bought below MSP
800 quintals
Purchased by CCI
₹7,870/quintal
Season’s highest rate
₹3,000/quintal
Lowest rate of the season