VJAS flays Maharashtra Cotton Federation’s demands to raise cotton MSP to Rs.3500/- when Market prices trading above Rs.4000/-.

VJAS flays Maharashtra Cotton Federation’s demands to raise cotton MSP to Rs.3500/- when Market prices trading above Rs.4000/-

Vidarbha cotton farmers Demand Rs.5000/- per hector ‘labor wage subsidy’ under MGREGA (NREGA).

Nagpur -7^TH September 2010

Vidarbha Janandolan Samiti (VJAS) advocacy group representing more than 3 million Maharashtra cotton farmers has strongly objected the plea of The Maharashtra State Co-operative Cotton Growers Marketing Federation Limited (MAHACOT) to central Govt. to raise cotton MSP from Rs.3000/- to Rs 3500/- per quintal when market prices at spot and future are trading above Rs.4000/- per quintal , Kishor Tiwari of VJAS informed in press release today.

“Since last four months cotton bales rate is above Rs.35000/- and cotton seed is being sold above Rs.1500/- per quintal and future trading till December in national and international commodity exchanges are showing bullish trend and massive cotton crop losses in India ,China, Pakistan and USA and west vidarbha. cotton growers has urged Indian Govt. to ask CACP to raise cotton MSP of Rs.4500/- per quintal to compensate farmers accumulated losses but day before yesterday Dr.N.P.Hirani, Chairman Maharashtra State Co-operative Cotton Growers Marketing Federation Limited (MAHACOT) has officially asked Govt. of India to raise MSP from Rs.3000/- to Rs 3500/- per quintal ,this is ridiculous and in collaboration with cotton traders and exporters along with textile miller owners mafia to drop down the prevailing cotton prices in national market. We will not allow the conspiracy of cotton traders and MAHACOT as there are very shocking news reports for kharif season 2010-11 area under cultivation of Bt.cotton is above 110 lakhs and record rain and massive floods in cotton cultivating areas has damaged most of standing Bt.cotton crop and excessive rain has jumped the cultivation cost to double, but expected yield is likely to reduce to 50% resulting more than Rs.27,000 crore huge financial losses to Indian cotton growers, hence our demand to raise cotton MSP of Rs.4500/- per quintal to compensate farmers accumulated losses.” Kishor Tiwari of VJAS added.

In a letter to Indian Prime Minister, Dr.Manmohan Singh , VJAS has given details of sky rocking cultivation cost which is exposing the truth of the agrarian crisis in the cotton growing area of India, here is the table:

110 lakhs hectors Bt.Cotton Sky Rocking Cultivating Expenses

Region	Area	seed	Fertilizer	Pesticide	labor	Fluking ,family labor and interest	Total
vidarbha	28 lakhs hector	Rs.1400 crore	Rs.1500 crore	Rs.1960 crore	Rs.1300 crore	Rs.1500 crore	Rs.7100 Crore
Maharashtra	42 lakhs hector	Rs.2100 crore	Rs.2200 crore	Rs.2940 crore	Rs.2840 crore	Rs..2100 crore	Rs.10200 crore
India	110 lakhs hector	Rs.5500 crore	Rs.5700 crore	Rs.7700 crore	Rs.5200 crore	Rs.5500 crore	Rs.27000 crore

Hence total cultivation expenses in dry land rain fed area for Bt.cotton is more than Rs.25,000 per hector , even the yield matches the toll claim of US MNC’s Monsanto then even too farmers breakeven cost at home is more than Rs.4,000/- per quintal hence due massive flood in china and Pakistan the Indian cotton demand will be higher hence higher MSP will protect the cotton farmer from blood sucking trader community area hence we demand higher MSP for cotton that’s minimum Rs.4,500/- per quintal ,Tiwari urged the CACP.

Mahatma Gandhi National Rural Employment Gurantee scheme MGREGA (NREGA) has not provided more than more than 20 maydays wages in rural sector of cotton belt of India as per official report but cotton growers has given more than 100 days continuous work 100% labors in all villages and near by urban area too, hence VJAS has asked central Govt. direct Rs.5000/- per hector ‘Labor Wage Subsidy’ under MGREGA (NREGA) fund to agrarian crisis bound region ,Tiwari said.

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