Govt to fix MSP of cotton on basis of quality

New Delhi -1-Nov-2007.

The government on Thursday decided to fix the minimum support price of cotton on the basis of quality with a view to give higher prices for good variety crop to farmers.

The Cabinet Committee on Economic Affairs allowed the Commission for Agricultural Costs and Prices (CACP) to recommend MSP of two classes of cotton with the specified characteristics of 'staple length and micronaire value', according to an official note released after the CCEA meeting.

The CCEA has asked the Textile Ministry for setting up of infrastructure facilities at purchase centre to scientifically assess the micronaire values so that farmers get the benefit.

At present, all cotton varieties are given the same MSP. The decision would give farmers a better price in the market as they would be able to know the support price for good quality cotton, an industry official said.

However, since the market price of cotton is more than the MSP it might not benefit the farmers this year, he added.

As per the CCEA approval, the CACP would decide MSP of 24.5-25.5 mm staple length of cotton having micronaire value of 4.3-5.1. It would also fix a higher price for better micronaire value 3.8-4.2 while lower price for cotton having less than 3.8 and more than 5.1 micronaire value.


Similarly, the CACP would fix MSP for the 29.5-30.5 mm staple length of cotton according to their micronaire value.

Along with the recommendation of MSP for the above two classes of cotton, CACP would specify the varieties of cotton falling in these two classes on year-to-year basis.

The CCEA also decided that for other classes of cotton, the Textile Commissioner would fix the MSP based upon the MSP fixed by CACP.

By Shamsheer (H)