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Mumbai, Nov. 3 The Cotton Association of India has expressed apprehension over the 40-50 per cent hike in the minimum support price (MSP) fixed by the Government for cotton procurement in 2008-09.

Mr P.D. Patodia, President, Cotton Association of India, said cotton was a global commodity and needed to have relevance and reference to the international price indicators. The current MSPs were announced in September 2008, while the New York Board of Trade (NYBOT) prices were hovering at 70 cents a pound, falling from a high of 90 cents a pound in March. It recently touched a low of 45 cents a pound. The cotton scenario in the new season was fraught with serious apprehensions and uncertainties arising out of the consequential implications of steep MSPs in the context of highly depressed global markets, failing systems and total lack of confidence all around, CCI said.

The stakeholders in cotton economy are reeling under a serious fear of complete breakdown of marketing channels.

The critical need was not to dislodge the marketing system and have a flexible, reasonable and market relevant MSPs through a consultative process with all the stakeholders and protect cotton welfare, he said.

The conventional method of cost plus reasonable profit for fixing MSPs, through which remunerative prices to the farmers were ensured, has been proved effective.

The association has appealed to the Government to consider a consultative review and revision of MSP so as to protect the welfare and smooth function of all the segments of the cotton economy.

More Stories on : Cotton

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