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Govt to slash cotton procurement
16
Nov '15
The govt-run Cotton Corporation of India (CCI) which purchased 87 lakh bales in the 2014-15 marketing year, may procure only 20-25 lakh bales of cotton in the current marketing year as domestic prices are higher than the support price in many parts of the country, according to a media report.

The CCI has so far purchased 3,000-4,000 bales in Telangana and Andhra Pradesh and will procure cotton in Maharashtra, but in other states, the purchase would be negligible, CCI Chairman and MD BK Mishra said.

CCI plans to open over 300 centres across the country for cotton procurement. It has already opened 84 centres in Telangana and 25 centres in Andhra Pradesh.

Cotton procurement will be much lower this season because prices have not fallen below the MSP in most places, Mishra said.

The government has fixed the MSP at Rs 4,100 per quintal for long staple cotton and at Rs 3,800 per quintal for medium staple cotton for the 2015-16 marketing year.

Cotton prices currently at Rs 4,500 per quintal in Punjab, Rs 4,400 in Gujarat, over Rs 4,200 in Maharashtra. In Telangana, prices in most parts of the state are above Rs 4,200 per quintal.

According to the Cotton Advisory Board, India's cotton production is estimated to be lower by 15 lakh bales at Rs 365 lakh bales in 2015-16.

Meanwhile, Union Minister of State for Labour and Employment Bandaru Dattatreya has said that the Minimum Support Price of mandated crops for ext season will be declared by the Union Agriculture Ministry after thorough research and study done by Commission for Agricultural Costs and Prices.

Dattatreya said as part of price policy recommendations, the cost of production was one of the important factors in the determination of MSP of mandated crops.

The Commission also considers market related factors such as demand-supply balance, inter-crop price parity, trends in market prices— both domestic and international, terms of trade between agriculture and non-agriculture, effect on cost of living and industrial cost structure cost represents the supply side of production while deciding the MSP. (SH)

Fibre2Fashion News Desk – India

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