(a) whether the Government is aware that the farmers have received very low
prices for cotton during the current year;
(b) if so, the details thereof; and
(c) the steps taken/proposed to be taken by the Government to ensure good
prices for cotton growers?
MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE, FOOD PROCESSING
INDUSTRIES AND PARLIAMENTARY AFFAIRS (SHRI HARISH RAWAT)
(a) & (b): The movement of cotton prices are determined by demand and supply
situation domestically and internationally. In the current cotton season 2011-12 the
prices of seed cotton in all the cotton growing states, in the beginning of the season
were ruling 15% to 50% above the Minimum Support Prices (MSPs) fixed by the
Government of India. At present, the seed cotton prices are ruling 17% to 43%
above the MSP level.
(c): Apart from increasing MSP for cotton, Government has taken the following
measures:
i. In the event of prevailing Cotton prices touching the MSP level, Cotton
Corporation of India (CCI), as nodal agency for MSP operations, has been
mandated to purchase the entire quantity of seed cotton offered by cotton
farmers at MSP without quantitative limit;
ii. In the absence of MSP operations, CCI is undertaking commercial operations
to ensure competitive prices to the cotton farmers.