The Hindu Business Line : Nod for new cotton support price formula

New Delhi, Nov.. 1 The Union Government has allowed the Commission for Agricultural Costs and Prices (CACP) to recommend differential minimum support prices (MSP) of cotton, linked to staple length and micronaire value of fibre.

Thus, there would be MSPs for two classes of cotton: The first for fibre of 24.5-25.5 mm staple length and 4.3-5.1 micronaire value and the second for fibre of 29.5-30.5 mm staple length and 3.5-4.3 micronaire value.

If the micronaire value for the first class is in the range of 3.8 to 4.2, a premium over the MSP is to be given. If the same is less than 3.8 and more than 5.1, the MSP is to be lower keeping in view the quality differential, normal price differential and other relevant factors.

Varieties to be specified

A similar lower MSP condition would apply for the second class in case the micronaire values are outside the specified range.

“Along with the recommendation of MSP for the two classes of cotton, the CACP will also specify the varieties falling in these two classes on a year-to-year basis,” an official release issued after a meeting of the Cabinet Committee on Economic Affairs (CCEA) said here on Thursday.

For other classes of cotton, the Textile Commissioner would fix the MSP based on the CACP’s recommended levels. Further, the baseline moisture content of cotton shall be eight per cent. Farmers selling cotton with moisture content above eight per cent will get a proportionately lower price, moisture below the baseline fetching corresponding higher price.

The new system of recommending cotton MSPs will help growers get appropriate prices for their produce. “The Ministry of Textiles would take steps to ensure that micronaire values are scientifically assessed to help the farmers, by providing the required infrastructure at the purchase centres”, the release added.

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