Home / Knowledge / News / Textiles / Nafed may not offer discounts as cotton prices turnaround
Nafed may not offer discounts as cotton prices turnaround
Apr '09
Cotton prices have increased above the minimum support price (MSP) in recent days. Due to which, the government may not allow Nafed, an agri-cooperative major to give discounts to consumers for bulk cotton purchases. The cabinet would be discussing the agriculture ministry's proposal of allowing Nafed to sell cotton at discounted prices, very soon, just as was done in the case of Cotton Corporation of India (CCI).

Experts say that in case the government approves the proposal, it would have to provide a subsidy of Rs. 1,300 crore to Nafed. This year Nafed has purchased 36 lakh bales that means 18 lakh tones of cotton worth Rs. 5,139.33 crore under the market intervention scheme (MIS).

In the month of February, the market rates of cotton were ruling below the benchmark support prices. The cabinet had directed CCI to dispose of the cotton procured at MSP by selling it on discounted rates to bulk purchasers. But now according to experts, as the cotton prices have increased above MSP in recent days, CCI may not sell its stocks at discounted rates.

Prices of cotton in Gujarat and in a few other regions are currently ruling above MSP. Nafed has purchased 16.7 lakh tones of cotton worth Rs. 4,766.03 crore from Maharashtra, which is the maximum amount purchased from any state. It has purchased 58,581 tons of cotton worth Rs. 166.95 crore from Gujarat and 70,623 tons from Andhra Pradesh totaling to Rs 206.34 crore.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th Apr 2017

Greater Manchester is high on its textiles industry

Greater Manchester is witnessing a boom in textiles industry with 77...

Apparel/Garments | On 25th Apr 2017

Indian trade leaders to discuss GST, digital payments

Trade leaders from various Indian states will meet in New Delhi to...

Apparel/Garments | On 25th Apr 2017

Foreign buyers paying less for green factory apparel

International buyers are not paying enough for apparel and garments...

Interviews View All

Rashi Menda

Every fifth sale we make on Zapyle is a repeat purchase

C Kamatchisundaram

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

Milind Khandwe
Hindoostan Innovation Centre

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

Eric Scholler

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

April 2017

April 2017

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


Browse Our Archives


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