(a) whether declaration of support price for cotton is under
consideration of the Government;
(b) if so, the details thereof;
(c) whether the Government is formulating any policy to compensate
the losses being incurred by the cotton growing farmers; and
(d) if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FOOD
PROCESSING INDUSTRIES (SHRI TARIQ ANWAR)
(a) & (b): The Government of India has already announced the Minimum
Support Price (MSP) of cotton for the current cotton 2013-14 season. The MSP of
cotton has been increased for medium staple from Rs.3600 per quintal in 2012-13 to
Rs. 3700 per quintal in 2013-14. Similarly for long staple it has been increased from
Rs.3900 per quintal in 2012-13 to Rs. 4000 per quintal in 2013-14.
(c) & (d): The Government of India fixes Minimum Support Price (MSP) for
certain agricultural commodities including Raw Cotton on the recommendations of
the Commission for Agricultural Costs and Prices (CACP) to ensure remunerative
prices to the growers for their produce. The Minimum Support Price (MSP) fixed by
the Government is in the nature of a minimum guaranteed price for the farmers offered
by the Government for their produce in case the market prices fall below that level.
If the market offers higher price than the MSP, the farmers are free to sell their
produce at market price.
The Government organizes purchase operations through its designated agencies. The designated
central nodal agencies intervene in the market for undertaking procurement operations with
the objective that the market prices do not fall below the MSPs fixed by the Government. Cotton
Corporation of India (CCI) and the National Agricultural Cooperative Marketing Federation
of India Ltd. (NAFED) are the designated nodal agencies of the Government of India to
undertake procurement of Cotton under Price Support Scheme (PSS).