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Suresh P. Iyengar

Mumbai, Nov. 23 The Government has ruled out the downward revision of minimum support price (MSP) for cotton.

The textile industry, led by the Cotton Corporation of India and the Confederation of Indian Textile Industry, along with the All Gujarat Ginners Association, has made a representation to the Government for reducing cotton MSP, which was hiked 40-45 per cent.

Speaking on the sidelines of the seventh National Conference of Commodity Exchanges, the Union Minister for Agriculture, Consumer Affairs, Food and Public Distribution, Mr Sharad Pawar, said the Government was not considering any revision in cotton MSP.

“There was demand from Gujarat and Andhra Pradesh for lowering MSP, but the interest of the farmers needs to be protected before considering the industry plea,” he added.

With prices of most cotton varieties ruling 30-35 per cent over the previous year due to the mark up in MSP, the demand from textile industry is expected to fall considerably on the back of a global economic slowdown and the cancellation of export orders.

The total global cotton consumption is estimated to drop by 3 per cent to 25.5 million tonnes. Except for India, cotton prices globally are on a free fall.

Ruling out any shortage in availability of sugar due to delay in crushing by the sugar mills, Mr Pawar said the monsoon in Maharashtra, Karnataka and Gujarat was delayed by a few weeks resulting in postponement of crushing.

“However, ample carryover stocks are available to take care of any spike in demand,” he added.

The acreage under wheat cultivation is expected to be higher than last year; though there are delays in sowing, favourable weather will ensure higher output, he said.

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