Home / Knowledge / News / Textiles / No cut in MSP of cotton – Shankersinh Vaghela
No cut in MSP of cotton – Shankersinh Vaghela
23
Sep '08
Mr Shankersinh Vaghela, Union Textile Minister ruled out any likelihood of pushing back minimum support price (MSP) for cotton.

The minister stated assertively that although MSP for cotton is quite high, the move is necessary to safeguard the interests of farmers who are on the receiving end.

Mr Vaghela further noted that to ease the industry from the impact of inflated cotton prices, the Government has provided the option of importing cheap raw cotton and to serve this purpose it has also removed import duty.

It was in July that the Government scrapped import duty on raw cotton and withdrew export incentives to boost supplies and maintain high prices.

When MSP for medium staple cotton was raised to 40 percent, the industry expressed disappointment and protested against this move but in vain. The Government stood firm in its decision on grounds that the step was necessary to cope with increased input costs.

MSP of medium staple cotton which includes the widely used Shankar variety, has been raised by 39-43 percent to Rs2,500 per 100 kilogram against last year's MSP of Rs1,750-1,800. Similarly, MSP for long staple fibre cotton has been raised to Rs3,000 per kilogram from its initial Rs2,250.

Textile minister further said that with increase in the productivity of cotton per hectare, yield is expected at over 300 lakh bales in 2009. Moreover, after a 15 percent drop in exports due to firming of Indian rupee last year, the textile industry has rebounded after tables turned with appreciation of dollar. Exports are anticipated to mount by 18 percent this year.

India exports about 24 percent of its textiles to the US market and another 18-20 percent to Europe. The Minister defied speculations that higher cotton price would lead to inflation.

However, on a positive note, Mr Vaghela noted that despite tough competition from China in textile exports, India's quality control was considered as best world-wide.

To take the industry to greater heights, he advocated undertaking production of technical textiles and a venture into organic cotton which has a huge demand in American and European markets.


Must ReadView All

L-R: Surya Ajay Agarwal (Director - Donear), Vikram Mahaldar (MD - OCM) & Rahul Rajendra Agarwal (Director - Donear)

Textiles | On 20th Nov 2017

Promoters of Donear Group acquire OCM Woolen Mills

The promoters of Mumbai-based Donear Group have announced the...

NRF welcomes US Senate committee approval on tax reform

Textiles | On 20th Nov 2017

NRF welcomes US Senate committee approval on tax reform

The National Retail Federation (NRF) has welcomed the approval of tax ...

NTGM opens garment export facility in Yangon

Apparel/Garments | On 20th Nov 2017

NTGM opens garment export facility in Yangon

Nordic Technology Group Myanmar Ltd. (NGTM) recently initiated...

Interviews View All

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Eric Scholler
Groz-Beckert

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search