By IANS
Ahmedabad : Trading in cotton in Saurashtra market yards of Gujarat resumed here Wednesday after Amreli-based Bhartiya Kisan Sangh (BKS) agreed to a minimum auction price of Rs.475 per 20 kg, ending a six-day long stand-off between framers and traders.
The price of Rs 500 per 20 kg, which the BKS demanded, was recommended by the Gujarat government to the centre. The central government had fixed a minimum support price of Rs.411 per 20 kg.
The BKS, according to reports reaching from Rajkot, was not allowing cotton to be traded until its demand was met. It even threatened to stop supply of milk and vegetables if there was no solution.
The matter has now been sorted out between BKS representatives and the Agricultural Produce Marketing Centres in the state.
This year cotton production is about to touch a record 12.5 million bales, up from around 9.5 million bales last year.
Inquiries made by IANS in marketing circles in Rajkot revealed that the agreed price carried no meaning, as farmers were willing to sell at Rs.400 per 20 kg their average quality cotton directly to buyers.
This price is less than both the agreed auction price and the minimum support price fixed by the centre, but marketing circles explained it was still a good deal for farmers because the latter saved on transport costs involved in bringing the produce to the marketing yards.
The public sector Cotton Corporation of India is yet to begin purchase operations in Gujarat. The agency buys at minimum support price only when cotton arrives in large quantities at the market.