No mandi, cotton growers go for distress sale

The cotton farmers of Ganjam district are in a Catch 22 situation.

BERHAMPUR: The cotton farmers of Ganjam district are in a Catch 22 situation.

After several years of wait, they reaped a good harvest but absence of mandis has posed difficulties in selling the produce. Though the district administration had last month assured to open mandis, it is yet to do so leaving the cotton farmers in a fix. Many of them who have availed loans are the worst hit.

Most of the farmers had borrowed money from different sources for their crop and harvested a much better yield than previous years. Sources said, cotton was cultivated in 1516 hectares in Gosani, Gumma, Rayagada and Kasinagar blocks.

Even as they are struggling to recover the input cost by disposing of the crop at cheaper prices, limitation of withdrawals after demonetisation has put brakes on their plans.

Like every year, traders from Andhra Pradesh procured cotton at Rs 4,500 per quintal from the growers here and paid them in cheque instead of cash, which was a practice earlier. But, the farmers are reluctant to accept the cheques as they have to travel long distances to encash and moreover will not be able to draw more than Rs 24,000 a week.

Andhra Pradesh traders paid us in cheques and now we are facing hardship in encashing those, said Trinath Sahu of Buradanga village in Raigada block.“I borrowed money to raise the crop, but due to cash crunch, I am unable to engage labourers to pluck cotton,” said Netra Behera. Behera said he sold eight quintals of cotton to Andhra traders, who took the stock from his doorsteps and paid through cheque. Now, I have to wait in queue for long hours in banks to get a part of my money,” he added.

District Collector Sudhansu Mohan Samal has reportedly directed the District Agriculture Officer Bijay Kumar Pradhan to initiate measures to purchase cotton from farmers immediately.

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