Suicides on, but cotton body talks record profit
Cotton farmers in Vidarbha may continue to suffer. But the state-owned cotton marketing federation hopes to make a record profit of Rs 50 crore during the 2007-08 procurement season.
By TNN |
MUMBAI: Cotton farmers in Vidarbha may continue to suffer. But the state-owned cotton marketing federation hopes to make a record profit of Rs 50 crore during the 2007-08 procurement season.
NP Hirani, president of Maharashtra State Cotton Growers’ Co-operative Marketing Federation, told reporters in Nagpur on Tuesday that the cotton procurement agency planned to purchase around 50 lakh quintals of cotton this season.
The federation would make a profit of Rs 50 crore from the sale of more than six lakh cotton bales — one bale is equal to 170 kg — in the open market. So far, it has sold around 5 lakh bales in the market and another 1 lakh would be sold this season, he added. The federation began its 2007-08 procurement season in Nagpur on Tuesday.
The Maharashtra Monopoly Cotton Procurement Act, under which the federation was constituted in 1971, mandates that the losses incurred under the cotton purchase scheme should be borne by the government and profits shared among cotton growers. Asked if the profits would be shared with farmers who sell their crop to the federation, Mr Hirani left the decision to the state government.
“The government will take a call. The government could also transfer the profits to the margin money account which would be used next season to purchase cotton,” he added.
NP Hirani, president of Maharashtra State Cotton Growers’ Co-operative Marketing Federation, told reporters in Nagpur on Tuesday that the cotton procurement agency planned to purchase around 50 lakh quintals of cotton this season.
The federation would make a profit of Rs 50 crore from the sale of more than six lakh cotton bales — one bale is equal to 170 kg — in the open market. So far, it has sold around 5 lakh bales in the market and another 1 lakh would be sold this season, he added. The federation began its 2007-08 procurement season in Nagpur on Tuesday.
The Maharashtra Monopoly Cotton Procurement Act, under which the federation was constituted in 1971, mandates that the losses incurred under the cotton purchase scheme should be borne by the government and profits shared among cotton growers. Asked if the profits would be shared with farmers who sell their crop to the federation, Mr Hirani left the decision to the state government.
“The government will take a call. The government could also transfer the profits to the margin money account which would be used next season to purchase cotton,” he added.
ADVERTISEMENT
The federation estimates an expenditure of Rs 1,000 crore to purchase around 50 lakh quintals of top grade cotton at Rs 2,060 per quintal. Mr Hirani said the state government had contracted loan agreements with nationalised banks for Rs 812 crore and the remaining would come from the government as margin money.Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
