Massive cotton procurement irregularities unfold, thousands of farmers rendered poorer in Telangana

Many farmers, particularly small and tenant farmers, have been unable to sell their produce at fair prices

Hyderabad: Cotton farmers in Telangana are still struggling due to irregularities in the procurement process. They were rendered poorer by several crores by syndicates that have exploited to the hilt the systemic issues.

Many farmers, particularly small and tenant farmers, have been unable to sell their produce at fair prices. A majority have resorted to distress sales below the Minimum Support Price (MSP).

Despite the MSP being set at Rs 7,521 per quintal, reports indicate that only around 20 per cent of cotton farmers have been able to sell their produce at this rate. The remaining farmers have been forced to sell to private traders and middlemen at lower rates, ranging between Rs 5,000 and Rs 6,000 per quintal, causing them to lose Rs 2,000 per quintal on average.

As a Rs 3000 crore scandal is alleged in the cotton purchases in the state this year, it is viewed as a fit case for a thorough probe and the chorus is growing for entrusting it to the CBI or for instituting a judicial probe. The tenant farmers have been hit hard as they often lack proper certification required for direct procurement.

Many were forced to sell their produce through intermediaries who reportedly recorded inflated purchase figures under false farmer registrations, reducing their share of profits. A major issue that affected the farmers has been the discrepancies in the issuance of Temporary Registrations (TRs), which are required for selling cotton.

Investigations revealed that of the 54,000 TRs issued, only 10,000 belonged to genuine farmers, while others were reportedly used by traders and millers. This has limited direct farmer access to procurement facilities, pushing more of them into distress sales.

Many farmers resented that the scandal had left them broke as they failed to realise what they had spent on the crop.

Technical glitches in procurement systems caused delays, further forcing farmers to sell to private buyers at lower prices. Many farmers reported difficulties in securing fair rates due to prolonged disruptions. Streamlining the procurement system ahead of the marketing season could have helped farmers secure better prices.

The State Agricultural Marketing Department had already suspended eight market committee secretaries, including some officials in Adilabad and Chennur, for alleged corruption.

A preliminary inquiry by the vigilance department was also conducted. But the master minds behind the racket could go scotfree because of the political clout enjoyed by them.

The scandal is attributed to the collusion of some CCI officials with Agricultural Marketing Department staff, and influential traders backed by political leaders in power. Much of the money paid by the CCI ended up with middlemen rather than farmers. There was hardly any effort to address even the technical glitches, ensuring direct engagement between procurement agencies and farmers.

At least by streamlining registrations for tenant farmers could have helped in reducing financial losses and provided much-needed stability to cotton growers, felt leaders from farmer bodies spearheading the fight against the unfolding scandal. They insisted that Telangana being a major cotton-producing State, effective procurement mechanism was crucial to safeguarding farmer livelihood.

Technical glitches in procurement systems caused delays, further forcing farmers to sell to private buyers at lower prices. Many farmers reported difficulties in securing fair rates due to prolonged disruptions. Streamlining the procurement system ahead of the marketing season could have helped farmers secure better prices.