Issues |
Present Position |
Demand by CIFA |
a) Fixing of MSP for Cotton |
1) Recommendations of various Committees viz., Shri. L.K. Jha, Dr. Ashok Mitra, Dr. S.R. Sen, Prof. C.H. Hanumantha Rao and Prof. Alagh under costs of cultivation scheme of CACP have not been implemented while computing costs of cultivation at grass root level. |
2) No transparency in collection of data and Farmers not involved. |
3) Previous years data is considered for fixing current year MSP without taking into consideration the cost index.
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4) The methodology followed, regarding imputing family labour, rental value of land, interest on capital, depreciation on fixed assets and agricultural machinery, cost of transportation, marketing charges and storage is not in conformity with recommendations of various Committees and working groups.
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5) There is no relevance between the costs actually incurred by Farmers, the data obtained from grass root level, computed by Agricultural Universities, State Governments, Directorate of Economics & Statistics, analyzed by Commission for Agricultural Costs and Prices and finally fixed by GOI.
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6) The MSP fixed by GOI is only Political Support Price (PSP) but not based on the data obtained from various sources.
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7) According to Govt. sources Rs.1 hike in diesel price increases the cultivation cost by Rs.100 per hectare and diesel prices have risen 13 % since last year.
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8) MSP is being announced after the farmers commence Kharif and Rabi sowing operations. Thus farmers have no choice of crop selection. |
9) MSP for Cotton fixed by GOI do not adopt the same parameters as adopted in fixing industrial product prices and Government employees salaries. |
10) The production cost of Cotton is estimated at Rs. 3000/- per qt. during the year 2008-09. As per recommendations of National Commission on Farmers headed by Prof. M.S. Swaminathan, the MSP be fixed by taking all costs incurred by farmer by adding minimum 50% of it (C2+Minimum 50% of it).
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11) Thus MSP is to be fixed at Rs.4500 per qt. (Rs.3000+50% i.e. 1500), where as the Government fixed only Rs. 2500 per qt. |
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1) Recommendations of various Committees under Costs of Cultivation Scheme be implemented and all costs actually incurred by farmers taken into consideration while collecting data at grass root level. |
2) The Whole system be reviewed, transparent procedures, methodology evolved and CACP be strengthened by inducting more Farmers representatives including women by granting autonomous status to enable farmers to protect their interests. |
3) MSP should be all costs actually incurred by Farmers by adding minimum 50% of it i.e. (C2+Minimum 50% of it) as recommended by National Commission on Farmers headed by Prof. M.S. Swaminathan.
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4) MSP be increased proportionately whenever agricultural inputs prices are increased by taking into cost of index into consideration as being followed in the case of salaries of employees of various sectors.
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5) MSP be fixed and announced 6 months before Kharif and Rabi harvests reach markets as recommended by experts groups.
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6) CIFA demands MSP of Rs. 4500 per qt. (Rs.3000 +50% i.e.1500) for Cotton.
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b)(i) Purchase (Procurement) of Cotton by Cotton Corporation of India (CCI).
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1) When the cotton crop is affected by rains / cyclones, the quality of the cotton will be affected. |
2) Government agencies i.e. CCI and Market Yards are reluctant to pay MSP fixed for Cotton. |
3) The State Governments are approaching GOI of India for purchasing Cotton affected by rains / cyclones.
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4) This procedure is time consuming and Farmers are resorting for distress sale of produce.
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5) Neither the govt. of India nor the State Governments are coming to the rescue of affected farmers.
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1) Mandatory provisions be evolved, CCI Acts and relevant Rules amended to purchase Cotton affected by rains / cyclone. |
2) The state Governments should amend marketing committees, Acts and Rules facilitating purchase of Cotton affected by rains, cyclone etc. |
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c) Production of certified Cotton Seed by public and private institutes & Seed replacement. |
1) Supply of certified Cotton Seed from public institutes and private companies account for 10 to 15 percent in different Cotton growing states. The remaining requirement is met either by storing own seed or by farmer-to-farmer exchange. Analysis of certified/ quality seed distributed reveals that not much progress has been made. |
2) The International & National, Research Institutions and Commissions appointed for the welfare of farmers emphasized the need of 100% replacement of seed for improving quality & quantity of yields. This item of work is to be tackled on war-footing basis. |
3) State governments have no sufficient resources to supply quality seed to farmers.
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1) Production of certified Cotton Seed by public and private institutes be increased under PPPs Scheme by offering incentives and tax holidays. |
2) Specific action plan be evolved for 100% seed replacement. |
3) Resources be provided by Government of India
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4) Area specific and high yielding varieties be produced and distributed at affordable prices. |
5) Establishment of seed banks be ensured to make available seeds at the time of natural calamities |
7) Involving farmers' organizations, NGOs and other private organizations with incentive packages for seed production be ensured. |
8) Seed Village Scheme be implemented. |
9) Agricultural graduates, progressive farmers and staff of Seed Societies be trained for production of quality Seed. |
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d) National Policy on Soil Health. |
1) Consequent on use of excessive chemical fertilizers and not following rotation of crops, the soils are badly degraded and needs immediate treatment to improve quality and quantity of yields. The International & National research institutions and Commissions appointed for the welfare of farmers emphasized the need of soil health. |
2) Budget allocation of Rs.75 crores made during 2008-09 for providing Mobile Soil Testing Laboratories is yet to be grounded. |
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1) National policy on soil health be evolved to rectify and restore soil fertility. |
2) Mobile soil testing laboratories be introduced and soil tests made at the fields in the presence of farmers. |
3) Soil health cards be provided to farmers. |
4) Quality micro nutrients be provided for balancing soil health. |
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e) Standardization of Organic Fertilizers & Extension of incentives on par with chemical fertilizers.
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1) Vermi compost, Vermi wash, Organic manures and bio-fertilizers are manufactured by several small scale units without maintaining standards and quality. |
2) The farmers are put to crop losses due to adulteration and high prices. |
3) No specifications are fixed for manufacturing organic fertilizers. |
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1) Specifications and standards be fixed for organic fertilizers. |
2) The incentives extended to chemical fertilizers be extended to organic fertilizers also. |
3) Incentives and Tax Holidays be offered for new entrepreneurs under PPPs Scheme. |
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| f) Research & Development |
1) The research and development failed to produce short duration and drought resistant varieties. |
2) No plan of action for producing required quantities of breeder, foundation and certified seed. |
3) India’s average cotton yield is only 319 kg/ha lint as compared to world average of 603 kg/ha. In view of low yield and poor lint quality, there is an urgent need
for stepping up of productivity and quality of cotton in the country. |
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1) Development and supply of High Yielding and Hybrid Varieties be ensured. |
2) Development of Resistant varieties to sucking pests, Cotton Leaf Curl Virus and cotton bollworms be ensured. |
3) Research on Insect Resistant Management be ensured. |
4) Research on Organic Cotton production technologies be ensured. |
5) Research on Integrated Pest Management be ensured. |
6) The research institutes should honour its primary responsibility and develop elite germplasm and release high yielding varieties regularly. |
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g) Transfer of Technology |
1) Transfer of improved Cotton production technologies remain as most neglected component and consequently the benefit of improved varieties and production technology could not be harnessed. |
2) Dissemination of improved technologies from lab to land consumes long time and adoption by Farmers is not ensured. |
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1) Emphasis be given on a cropping system approach rather than a single crop development approach. |
2) Improved crop production technologies be propagated based on agro-climatic zones through demonstrations on Farmers fields and organizing training programmes for Farmers including women. |
3) Quick dissemination of knowledge on improved technologies be ensured. |
4) Aggressive transfer of production technologies be ensured through Frontline demonstrations and Block demonstrations involving SDA, KVKs, NGOs, SAUs and private sectors under PPPs Scheme by offering incentives and Tax Holidays.
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5) Bottom up approach of technology development and dissemination by involving farmers should be ensured. |
6) ATMA concept of NATP project be extended to all the States and districts in the country. |
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| h) Mechanization |
1) Agriculture labour shortage is a major constraint in completing sowing and harvesting operations in time. |
2) Physical drudgery involved in culture practices driving away the workforce to Urban areas for better jobs. |
3) Traditional culture practices consume more man hours and also physical drudgery on the part of both labour and animals. |
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1) Innovative bullock and power drawn modern farm implements be invented and introduced for timely completion of sowing and harvesting operations under PPPs Scheme by offering incentives and tax holidays. |
2) The agricultural implements be provided with 75% subsidy. |
3) Agricultural implements be made available on custom hire service through village panchayats, co-operatives, self help groups. |
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i) Crop Insurance. |
1) The premium collected on crop loans ranges from 2% to 7%. |
2) All risks are not covered. |
3) Procedures adopted for indemnifying losses are against farmers interest.
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4) In the case of automobile and industrial sector actual loss is indemnified and in the case of agriculture 5 years average / threshold yield is adopted. |
5) The village is not adopted as unit. |
6) The insurance claims are not settled in time and farmers are required to pay extra interest on the loans borrowed. |
7) In other countries the premium is subsidized and farmers interest protected while indemnifying losses by extending financial support. |
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1) The premium be reduced by subsidizing as in the case of other countries. |
2) Cumbersome procedures adopted for indemnifying losses be reviewed and crop losses indemnified quickly as in other sectors and countries. |
3) The crop loss claims be settled before due date fixed for payment of loan. Interest if any payable after due date consequent on delay in settling claims be borne by crop insurance company.
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4) Remote sensing technology be applied for settling crop loss claims in a time bound programme. |
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j) Cotton Corporation of India -review of functioning. |
1) Due to in sufficient cotton procurement centers of CCI farmers are facing problem in selling their Cotton. |
1) There is no equipment for testing Staple length and lint quality of Cotton at CCI procurement centers. |
2) The manual testing adopted is biased. The traders are benefited and farmers are resorting distress sale.
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1) CIFA demands procurement of Cotton by CCI from Farmers by opening sufficient procurement centers in all cotton producing districts. |
2) National Cotton Commodity Committee of CIFA be consulted by CCI to create awareness among Cotton Farmers on quality norms and organize training programmes. |
3) Scientific equipment be introduced for testing Cotton lint quality and staple length.
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4) The CCI should provide warehousing, pledge loan facilities to enable farmers to store and dispose produce when he obtains remunerative price. |
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| 2. MINISTRY OF COMMERCE |
a) To ban import of Cotton without approval of Farmers Associations. |
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1) Government is importing Cotton which results fall in the Cotton prices. |
2) The Government importing Cotton even though there was huge stock within the country. |
3) The import policies are arbitrary and are harmful to the interest of farmers. |
4) There is no long term policy of imports and exports based on supply and demand. |
| 5) The present import and export policy is beneficial to traders but not farmers. |
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1) Long term import and export policies be evolved based on demand and supply. |
2) Government not to allow import of Cotton without consulting and approval of farmers organizations. |
3) Export of Cotton be permitted after the domestic requirement is fulfilled.
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| 3. MINISTRY OF FINANCE |
| a) In adequate Agriculture Credit. |
1) The total area cultivated under Cotton is estimated to be about 2.4 crore acres. |
2) The Costs of Cultivation per acre is estimated at Rs. 36,000/-. |
3) The total credit required for Cotton Farmers is estimated at Rs. 8,64,000 crores per annum. |
4) But statistical data exhibit that 1/3rd of Cotton Farmers alone are covered under Banks Credit. The balance farmers depend on private lendings. |
5) The scale of finance fixed for Cotton is ignored and banks are resorting for under finance and driving Farmers for private borrowings. |
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1) All Cotton Farmers in the Nation be provided with bank loans. |
2) The scale of finance fixed for respective crops be sanctioned and disbursed to the farmers. |
3) Micro Credit Institutions, Post Offices be involved for providing credit to the Farmers. |
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b) Rate of Interest on Agriculture Loans |
1) Different Banks are charging different rates of interest ranging from 7% to 14% on Agricultural Loans. |
2) Lesser interest is charged on housing and Industrial Loans. |
3) Agriculture is a priority sector and hence lesser rate of interest is required to be charged on Agriculture Loans. |
4) The National Commission on Farmers headed by Prof. M.S. Swaminathan recommended 4% rate of Interest on Agriculture Loans. |
5) The Banks are charging compound interest, service and other charges etc.
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6) The banks are insisting no due certificates from farmers. |
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1) Simple rate of interest at 4% be charged on agriculture loans without collecting any service and other charges. |
2) Instructions be issued to banks for not insisting no due certificates from farmers. |
3) Adequate credit be provided to Cotton Farmers based on the scale of finance fixed. |
4) The practice of charging higher rate of interest after due and penal interest be dispensed with in the case of agricultural loans. |
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c) Waiver of total loans on failure of two crops and interest on loss of one Crop.
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1) Failure of two consecutive crops either in dry or irrigated conditions will cause irreversible damage to the family of farmer. |
2) The agricultural activity is spread over long term and the farmers not only invest money but also their own family labour. |
3) It is not possible under any circumstances to recoup the loss. The Crop Insurances Schemes in place are against the interest of Farmers. |
4) Re-scheduling of crop loans is not beneficial to the farmer as he can not increase the production or he will get 100% more price. |
5) Therefore the farmer cannot repay the losses sustained in two years.
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1) Agricultural Debt Waiver and Debt Relief Scheme-2008 has not provided anticipated relief to Farmers. |
2) The total loans be waived by Government in the case of two successive crop losses.
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3) Interest be waived in the case of one crop loss. |
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| 4. MINISTRY OF IRRIGATION AND POWER |
a) Providing of irrigation facilities to dry land Cotton farmers in the country. |
b) Free electricity to Cotton farmers using groundwater. |
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1) 65% of dry land Cotton farmers are dependent on rains. Since rains are highly unpredictable the farmers are put to immense difficulties. |
2) Providing water to agricultural activity is a constitutional obligation of the government. |
3) The farmers depending on groundwater are investing Rs.1.5 to Rs. 2 lacs. on bore-well and pump set. |
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1) All the Cotton lands in the country be provided with irrigation facilities. |
2) The ground water user farmers be provided free electricity. |
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