MINISTER OF AGRICULTURE (SHRI SHARAD PAWAR)
(a) to (c): A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF LOK SABHA
STARRED QUESTION NO. 248 DUE FOR REPLY ON 3RD DECEMBER, 2007
(a) & (b): The Minimum Support Prices (MSPs) of cotton are fixed by the Union
Government and not by the State Governments.
Government of India fixes MSPs for two basic varieties of cotton viz. medium staple
cotton (i.e. J-34/F-414/H-777) and long staple cotton (i.e. H-4) on the basis of recommendations
of the Commission for Agricultural Costs and Prices (CACP) at the country level. While
recommending the MSP, the CACP takes into account the relevant factors including the cost of
production of cotton. The projected costs of production (measured in terms of A2 + FL cost viz.
all expenses in cash and kind including rent paid for leased-in land and imputed value of wages
of family labour) of cotton for the country and the MSPs for those basic varieties for the
2007-08 season are as follows:
Items Cotton season 2007-08
Weighted average A2 + FL cost (in Rs. per Quintal) 1528.11
MSP for medium staple (F-414/H-777/J-34) (Rs. 1800
per Quintal)
MSP for short staple (H-4) (Rs. per Quintal) 2030
After the Government fixes the MSP for aforesaid two basic varieties of cotton, the
Textile Commissioner, Ministry of Textiles fixes the MSP for other 26 varieties of Fair Average
Quality with regard to their quality differentials, normal price differentials and other
relevant factors.
The Government also arranges the procurement of cotton through the designated agency
viz. the Cotton Corporation of India (CCI).During the year 2006-07, the CCI has purchased
11,78,455 bales (of 170 Kgs. each) of cotton.
(c): The State-wise details of cotton production during the last three years are shown below:
(Production in lakh Bales of 170 Kg each)
States 2005-06 2006-07 2007-08
Andhra Pradesh 2108.0 2127.0 2097.0
Gujarat 6772.0 8787.0 9000.0
Haryana 1499.0 1814.0 1912.0
Karnataka 554.0 440.0 258.0
Kerala 3.5 2.0 0.0
Madhya Pradesh 745.1 829.0 425.0
Maharashtra 3160.0 4950.0 5805.0
Meghalaya 7.8 0.0 0.0
Orissa 144.8 108.0 146.0
Punjab 2395.0 2678.0 2440.0
Rajasthan 880.5 747.0 763.0
Tamil Nadu 213.3 174.0 82.0
Uttar Pradesh 5.2 1.0 0.0
West Bengal 6.0 23.0 0.0
Others# 4.8 16.0 14.0
All India 18499.0 22696.0 22943.0
# Others include Assam, Chattisgarh, Himachal Pradesh, Mizoram, Nagaland, Tripura and
Pondichery.