Union govt’s decision to raise MSP of cotton to 40% is favourable: VJAS

Font Size

Print

Feedback

Email

Discuss

Related Articles

Arcadia, Mahyco in commercial license agreement

New Delhi, Sep 7: Vidarbha Jan Andolan Samiti (VJAS) has welcomed the Union government's decision to raise the minimum support price (MSP) for cotton by 33 to 40% in the upcoming cotton year beginning October 1.

"It has been a long pending demand of the cotton farmers of Vidarbha to increase the minimum support price(MSP) so that cotton crop losses are minimised, as since the year 2005, the cost of cultivation of has suddenly increased to 300% due to the introduction of costly genetically modified (GM) cotton seeds, resulting in huge financial losses pushing, more than 3 million cotton farmers in debt and distress. West Vidarbha has reported more than 5,000 cotton farmers suicides due to the cotton crop crisis and the Indian Government has declared a Rs 3,750-crore relief package for west Vidarbha in July 2006, followed by a Rs 71,000-crore loan waiver package for Indian farmers, but both failed to stop on going farmers suicides," said Kishor Tiwari of VJAS.

The notification regarding the hike in MSP was made on September 1. According to the joint secretary in the Union textile ministry, JN Singh, the hike in

MSP became necessary due to increased input cost and an overall rise in cotton prices.

The MSP of medium staple cotton, which includes the popular Shankar variety, has been raised by 40% to Rs 2,500 per 100 kg. The MSP last year was Rs 1,750-1,800.

The MSP for long staple fiber was raised to Rs 3,000 per 100 kg from Rs 2,250 in the 2007/08 season.