Cotton auction: syndicate by bidders alleged

The Tamizhaga Cauvery Vivasayigal Sangam has alleged that cotton auctioning in the district has been affected due to a syndicate among the bidders.

Talking to reporters after raising the issue with officials of the Regulated Market at Mannargudi on Wednesday, TCVS general secretary P. R. Pandian said the cotton auction in delta districts began with the State government fixing a base price of ₹60.80 per kg. Till a fortnight ago, the price quoted by the bidders at the regulated markets where auctioning of cotton was conducted hovered between ₹100 to ₹110 and proceeds were credited in the farmers’ accounts.

However, as the arrivals at the regulated markets increased, the bidders formed a cartel and pulled the bidding price below the base price. Further, they offered their bids for selective lots only forcing other cotton cultivators to market their produce in the open market.

Claiming that the farmers were forced to resort to distress sale, Mr. Pandian exhorted the State government to intervene and save the delta farmers who had switched over to cash crop cultivation during summer instead of cultivating paddy as per the instructions from the State government.

He urged the government to procure and sell the produce to traders/buyers in the districts where cotton remained the prime raw material for production.

Meanwhile, official sources said cotton auction was being conducted at the regulated markets as per the rules and regulations.

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Printable version | Aug 17, 2022 6:09:23 am | https://www.thehindu.com/news/cities/Tiruchirapalli/cotton-auction-syndicate-by-bidders-alleged/article65579613.ece