Interviews
Cotton seed firms clamour for higher selling prices
21 Mar '11
2 min read
Since a long time, cotton seed producing companies have been clamouring the government to increase the maximum retail prices of the cotton seeds they sell to farmers, as input prices have spiraled in the last few years.
Seed producers mainly from Gujarat, Andhra Pradesh and Maharashtra, which together produce around 70 percent of cotton in India, are pushing and lobbying for a hike in prices from Rs 750 per packet (450 gms) to Rs 925 per packet.
The main cost hike has come from higher prices paid to seed farmers who supply the seeds to companies, who in turn sell the seeds to cotton farmers. Seed farmers received Rs 300-350 per kg against Rs 250-270 per kg, two years ago.
“Though in general circumstances, companies may decide the MRP, but this time due to shortage of production, Gujarat, Maharastra and Andhra Pradesh governments have decided to increase seed prices”, said Mr NP Patel, Managing Director of Western Seeds.
He added, “This year the production shortfall was by 10 million packets as compared to last year, hence to optimize, they have decided for a increase of Rs.100 / kg i.e., from Rs 275 to Rs 375 / kg”.
“Along with shortages, there are other factors too, viz increased labour wages, cost of fertilizers that have augmented total cost of production, so the price rise is justifiable. Even farmers have absorbed this rise as it is affordable. Moreover, this price rise in seed would least affect garment prices”, he concluded by saying.
Seed producers mainly from Gujarat, Andhra Pradesh and Maharashtra, which together produce around 70 percent of cotton in India, are pushing and lobbying for a hike in prices from Rs 750 per packet (450 gms) to Rs 925 per packet.
The main cost hike has come from higher prices paid to seed farmers who supply the seeds to companies, who in turn sell the seeds to cotton farmers. Seed farmers received Rs 300-350 per kg against Rs 250-270 per kg, two years ago.
“Though in general circumstances, companies may decide the MRP, but this time due to shortage of production, Gujarat, Maharastra and Andhra Pradesh governments have decided to increase seed prices”, said Mr NP Patel, Managing Director of Western Seeds.
He added, “This year the production shortfall was by 10 million packets as compared to last year, hence to optimize, they have decided for a increase of Rs.100 / kg i.e., from Rs 275 to Rs 375 / kg”.
“Along with shortages, there are other factors too, viz increased labour wages, cost of fertilizers that have augmented total cost of production, so the price rise is justifiable. Even farmers have absorbed this rise as it is affordable. Moreover, this price rise in seed would least affect garment prices”, he concluded by saying.
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Folker Stachetzki
Brother Internationale Industriemaschinen GmbH
Dr. Sameer Sood
National Institute of Fashion Technology
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