Home / Knowledge / News / Textiles / CITI protests against unreasonable increase in MSPs for cotton
CITI protests against unreasonable increase in MSPs for cotton
Sep '08
Confederation of Indian Textile Industry has expressed shock and dismay at the unreasonable increase announced by Central Government in the Minimum Support Prices (MSPs) for cotton for 2008-09.

In a statement here, Shri P.D. Patodia, Chairman, CITI has pointed out that the Textile Industry in India is in the throes of a crisis in the context of rapidly declining demand in western markets and simultaneous supply side problems arising from increased raw material prices & higher input costs.

In this context, the increase of over 40% announced in Minimum Support Prices for cotton for cotton year 2008-09 has come as a rude shock to the industry. Currently domestic cotton prices are already 15% higher than international prices, he added

The increase in MSPs would trigger another price spiral which the industry will not be able to afford or absorb. Shri Patodia pointed out that the MSP had been increased by 47% from Rs.2030 a quintal last year to Rs.3000 a quintal this year, for the standard variety of long staple cotton.

Shri Patodia stated that government should take cognizance of the interdependency of the textile industry and cotton farmers as an effective chain so as to ensure that the decisions meant to help cotton farmers do not end up in reducing cotton consumption and thus hurting the long-term interests of cotton farmers.

MSP operation has its own attendant problems of size and speed of process since it has to handle an avalanche of cotton arrivals, which can go up to 2 lakh to 2.5 lakh bales per day. In two months Nov/ Dec total arrival can go up to 1.50 to 1.75 crore bales and the quality of cotton has to be maintained to make it marketable and usable.

Shri Patodia felt that government will be forced to procure huge quantities, since the mills will not be able to purchase cotton at the increased prices, and the procured cotton will have to be disposed of at huge loss to the exchequer.

“We are fully aware that remunerative prices and reasonable income of cotton farmers on a regular basis is in the enlightened self interest of the industry. But such a steep increase in MSP at this juncture will only hurt the long-term interests of both the industry and the farmers and we would therefore request and plead that the MSPs may be revised downward with an increase of not more than 10% from those applied during 2007-08”, Shri Patodia stated.

Confederation of Indian Textile Industry

Must ReadView All

Apparel/Garments | On 26th Oct 2016

SGS develops 4C chemical management model for apparel

SGS, a leading inspection, auditing, certification, testing, and...

Textiles | On 26th Oct 2016

Platinum Equity acquires International Textile Group

International Textile Group (ITG) has been acquired by Platinum...

Textiles | On 26th Oct 2016

Whitehouse & URI Business Centre start RI textile network

Senator Sheldon Whitehouse and the University of Rhode Island...

Interviews View All

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search