Question : SUBSIDY FOR MAINTAINING MINIMUM SUPPORT PRICE OF COTTON

(a) whether the Government gives subsidy to Cotton Corporation of India (CCI) for maintaining Minimum Support Price (MSP) of cotton;

(b) if so, whether Maharashtra State Cooperative Cotton Growers Marketing Federation Limited is not getting any subsidy for last two sessions (2004-05 and 2005-06) though it purchases raw cotton and helps in maintaining MSP of cotton;

(c) if so, the details thereof;

(d) whether Maharashtra Government has sent any proposal for sanction of the subsidy to Maharashtra State Cooperative Cotton Growers Marketing Federation Ltd.; and

(e) if so, the details in this regard?

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE (SHRI KANTI LAL BHURIA)

(a): No, Sir. The Government does not give direct subsidy to Cotton Corporation of India Ltd. (CCI) for maintaining the Minimum Support Prices (MSP) of cotton. The CCI, as one of the nominated government agencies, undertakes procurement operations for various grades of cotton at MSP fixed by the Government. The Government of India reimburses the losses, if any, incurred by CCI in the process of such operations.

(b) & (c): Government of India does not have any scheme to grant subsidy to Cooperatives including Maharashtra State Cooperative Cotton Growers Marketing Federation (MSCGMF) for purchase of cotton.

(d): No such proposal from Government of Maharashtra has been received.

(e): Does not arise.