Govt contemplates new scheme for cotton farmers

Under this system, the farmers will directly get the amount which is the difference between the MSP and market price, if the market price goes below the MSP.

If the pilot is successful, the DPDS will be rolled out in all cotton-growing regions. The Agricultural Produce Marketing Corporation (APMC) price will be taken as the market price under the system, she said.

So far, the Government used to buy cotton by paying the MSP of Rs 3,750 per quintal but that often created artificial short supply in market. It also incurred huge cost on interest and storage of the procured stock.

Under the DPDS, the farmers will have to submit documents like a copy of APMC receipt, land records and estimated farm yield to avail the benefit.

In the last season that ended in October 2015, the Cotton Corporation of India procured 86 lakh bales of cotton across the country. But cotton procurement this year is likely to be lower than last year due to firm prices, which are ruling above the MSP.

Despite a drought-like situation, cotton production in Maharashtra is expected to be at 80 lakh bales compared to 78 lakh bales the last season. The yield in Maharashtra is expected to go up to 355.65 kg per hectare from last year's figure of 316.32 kg per hectare. Cotton acreage has shrunk to 38.24 lakh hectares from 41.92 lakh last year mainly due to weak prices. (SH)

Fibre2Fashion News Desk – India