Middlemen riding roughshod over cotton farmers Cotton growers losing Rs 1,000 per quintal due to cheating by brokers

Cotton farmers in Rangareddy district are being exploited by brokers and middlemen by engaging in fraudulent practices under the guise of ‘benami’ farmers. These illegal activities are causing significant financial losses to genuine farmers while benefiting trade license holders and brokers.
Farmers, who work tirelessly from planting seeds to harvesting their crops, are being cheated in multiple ways. Brokers are purchasing cotton from farmers in villages at rates far lower than the government-mandated price of Rs 7,521 per quintal. Instead, they are offering Rs 6,400 to Rs 6,500 per quintal, depriving farmers of Rs 1,000 per quintal.
The cotton thus purchased is then resold at Cotton Corporation of India (CCI) centres through benami farmers, generating significant profits for these brokers.
The involvement of trade license holders in this malpractice is particularly alarming. Reports indicate that nearly ten ginning mills across the district are part of this illegal operation. Farmers allege that marketing and agricultural department officials are turning a blind eye to these irregularities, further enabling the exploitation.
Despite the government’s assurances of fair practices, brokers are openly purchasing cotton in villages without proper authorisation. Many farmers believe that officials are complicit in the ongoing fraud, as the licenses of those involved remain untouched. These illegal transactions not only harm farmers but also result in significant revenue losses for the government.
In several cases, cotton purchased at lower rates by brokers is sold under fictitious names at CCI centers, creating an artificial demand and inflating profits.
This benami system has left farmers in Rangareddy district with no option but to sell their produce at unfair prices, leading to mounting financial distress.
Farmers and farmer unions have expressed their frustration, urging the government to intervene and address the irregularities at CCI centers. They demand stricter oversight, immediate cancellation of licenses for violators, and measures to ensure farmers receive fair prices for their crops.
Marketing Officer Srinivas clarified that trade licences would be revoked if violations are confirmed. He emphasised that cotton purchases at CCI centres are conducted based on the farmer’s Aadhaar card and photograph. However, this measure appears insufficient to curb the benami operations rampant across the district.
 Farmers across Rangareddy district are urging authorities, including the district collector, to take swift action to end the exploitation.
They demand justice and a fair system that safeguards their livelihood, free from the clutches of corrupt brokers and middlemen.