New Delhi, Mar 12: The ministry of textiles has instructed the Cotton Corporation of India (CCI), Ahmedabad, to ``immediately step up'' its procurement efforts in Gujarat to ensure that the existing level of cotton prices in the market do not fall further.This was announced by textiles minister Kashiram Rana here last evening. The decision of the ministry has been taken to help the cotton-growing farmers and ensure that they get remunerative prices for their produce.
The government has already decided to open more purchasing centres in Gujarat, especially in the Saurashtra region, he said.
The fresh instructions have been given in response to the appeal of the Chief Minister of Gujarat, Keshubhai Patel, to the textile minister as the former apprehended that the prices of cotton could fall further with the arrivals of fresh cotton, especially Kalyan variety, in the market. The Chief Minister urged Rana to intervene in the matter and advise CCI to accelerate its procurement in order to save the farmersfrom distress.
It may be mentioned here that 45 lakh bales of cotton are expected to come into the market in 1998-99 as against 43.16 lakh last year. The area under cotton cultivation has also gone up to 16.97 lakh hectares in the year 1998-99 as against 15.19 lakh hectares last year.
Out of the 45 lakh bales expected this year, 35 lakhs are estimated to be of Shankar crop, 8 lakh of Kalyan (v797), 50,000 bales of Digvijay variety, 50,000 of Wagad and around 1 lakh bales of the rest.
Already 27 lakh bales have arrived in the market which have been predominantly of the Shankar variety. The 8 lakh bales of Kalyan variety are going to start now and CCI had been geared up to step up its purchases for this particular variety especially in the Saurashtra region where most of this variety comes.
CCI had purchased 1,78,654 bales in the year 1997-98 and has already purchased 1.18 lakh bales in the current year. The purchases are likely to go on till 15th of May this year. The endeavour of CCI would be tomaintain the prices of cotton at the current levels in the market. However, the minimum support price (MSP) of these varieties announced by the government for this year has been Rs 1370 per quintal for Kalyan as against Rs 1265 last year and Rs 1670 per quintal for Shankar as against Rs 1565 last year.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.