Overview of Cotton Farming Crisis in Gujarat

The recent economic and environmental challenges faced by cotton farmers in Gujarat, India, have resulted in severe distress, leading to instances of farmer suicides. This summary explores the contributing factors to this crisis, the impact of government policies, and the responses from various stakeholders.

Economic and Environmental Challenges

• Price Declines: Farmers faced low cotton prices, around ₹1,200-1,300 per mann (20 kg), which was a significant decline from previous years.
• Weather Issues: Non-seasonal and excessive rains in October damaged crops, further exacerbating the farmers' financial struggles.

Government Response

• Relief Package: Chief Minister announced a relief and assistance package worth approximately ₹10,000 crore, with plans to procure various crops at support prices.
• Import Duty Waivers: The Union government waived customs duties on raw cotton imports, aiming to stabilize textile costs but adversely affecting domestic cotton prices.

Impact of Import Policies

• Increased Imports: India nearly doubled its cotton imports compared to the previous year, leading to a further decline in domestic prices.
• Industry vs. Farmers: While the textile industry benefits from cheaper imported cotton, Indian farmers receive lower prices for their produce.

Agricultural and Market Dynamics

• Production and Acreage: The provisional cotton acreage for 2024-25 is 114.47 lakh ha, a decrease from 2023-24, with yields expected to remain constant.
• Market Access Issues: Farmers face logistical barriers, such as the absence of local market yards, forcing them to sell produce in distant districts.

Farmer Protests

• Suicides and Protests: Six farmers, primarily cotton growers, have died by suicide in recent months, prompting protests against the government's policies and lack of adequate price support.

Challenges in Cotton Production

• Input Costs: Rising costs of seeds and pesticides, coupled with stagnant cotton prices, have discouraged farmers from cultivating cotton.
• Shift to Alternative Crops: Many farmers are shifting to peanuts, pulses, or traditional cotton varieties like kala kapas to reduce input costs.

Industry Perspectives

• Quality and Yield Issues: Low-quality seeds and reduced yields are major challenges. Farmers are advocating for new seed approvals to enhance productivity.
• Impact on Ginning Mills: The duty-free import policy benefits spinning mills but poses a threat to ginning mills, causing many to shut down.

Conclusion

The cotton farming crisis in Gujarat is multifaceted, involving economic, environmental, and systemic challenges. While government measures aim to stabilize the industry, they often fall short of addressing the root causes of farmer distress. For sustainable solutions, there is a need for comprehensive policy interventions that balance industry growth with farmer welfare.