Corona Effect: Cotton export to China closed; Indian farmers in distress

India exports 12 to 15 lakhs cotton bales annually from India. Up to January, this year 6 lakh cotton bales have been exported to China. But, because of the Coronavirus danger, the import and export from China are stopped. So, the cotton exports have been completely closed down.

Jalgaon: Due to the outbreak of coronavirus, the China government has stopped import and export trade nearly 80 per cent. As a part of it, China has also suspended the cotton bales exported from India. Which has affected the Indian cotton business as 3 lakh cotton bales are lying in the country. Because of the closure of exports, Indian cotton federation has closed down the cotton procurement centre.

As the procurement of cotton from the government has come to a stop, the private traders are looting the cotton growers. As they have no other way than to sell their products at Rupees 500 which is below the guaranteed price. Thus, the farmers are finding themselves in a grim situation.

China is a major cotton importer country from India and It is a huge cotton producer as well as the world’s biggest importer. Annually, 12 to 15 lakh cotton bales are exported to China. This year, up to January, 6 lakhs cotton bales have been exported to China. But, due to the increase in Coronavirus, it has suspended import and export trade completely.

This decision has hit cotton growers in India severely. The suspension of import from other countries along with India and the US has badly affected the international market. Already, the US and China trade war has affected export in China.

Generally, the CCI centre operates upto March-April every year. But, on January 30, it suddenly issued an edict to close the cotton procurement from 5 February. CCI administration has also issued a directive that there should not be a purchase of cotton, till further orders. It has not given any reason for stopping the procurement.

The cotton prices have been severely affected by the recession in the international market. As lakhs of cotton bales are lying in the domestic markets, in a period of a week, the guaranteed price is reduced by 100 rupees.

The government had fixed the guaranteed price for cotton as 5,550 Rs.

Now, the cotton is being purchased at the rate of 5,450 Rs. Even if CCI has stopped purchasing cotton, marketing federation centre is running as usual.

As Cotton Corporation of India (CCI) centre closes, Traders-Agant nexus in action Ginning or government procurement centre has acquired 15 lakh Quintal cotton so far. But, 50 percent cotton bales are lying in the farms. As buying from the government is stopped, there are apprehensions about its restarting. So, the farmers have no other option than to sell their goods to private Ginning factories and traders.

The traders are taking undue advantage of this situation and they are purchasing cotton at 4,700 Rs to 4,800 Rs. per Quintal. In this way, the peasants are losing 500 to 600 Rs. per Quintal of cotton.