CACP suggests Maharashtra govt to help cotton growers

The Commission for Agricultural Costs and Prices (CACP), the body that recommends the minimum support prices (MSP) for various agricultural commodities, including cotton, has suggested that the Maharashtra State government should announce some relief package for cotton growers in the State on its own, with some help from the Centre.

The suggestion has come in response to reports about the farmers in the State asking for an increase in the MSP of cotton.

Currently, the MSP for long staple variety of cotton has been fixed by the Centre at Rs. 3,300 a quintal, while the cotton prices in Maharashtra and adjoining Gujarat are around Rs. 4,000 a quintal.

Cotton prices have dropped from a record high of Rs. 7,000 a quintal in March this year owing to a drop in demand from both domestic and export markets.

Another reason for the drop in prices is the estimated harvest of 35.6 million bales (1 bale = 170 kg) of cotton during the current season that began in October, higher than the 32.5 million bales produced last year.

Comparing the situation of Maharashtra cotton growers with those of Gujarat, Dr. Ashok Gulati, Chairman CACP, told fibre2fashion, “The biggest problem with Maharashtra is that the irrigation level in cotton is pitiably low to the extent of less than 5 percent. Their productivity is half of Gujarat. On the other hand, Gujarat has 50 percent of area under cotton under irrigation and productivity is double of Maharashtra. Therefore, cotton cultivators in Gujarat make profits at the same MSP whereas Maharashtra farmers make very little profit or even loss.”

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