Govt announces Minimum Supporting Price for cotton
In a move aimed at stabilizing the cotton prices which have witnessed sharp plunge and are operating around Minimum Support Price (MSP) levels, the government announced revised minimum support price (MSP) for cotton for early commencement of minimum support price operations.
The government revised MSP prices for medium staple cotton from Rs. 2800 per quintal to Rs. 3600 per quintal and for long staple cotton from Rs. 3,300 quintal to Rs. 3, 900 per quintal for cotton season 2012-13.
What is the reason behind the decline in prices?
Despite increase in domestic consumption, the sharp decline in global trade and increase in world stocks have put a downward thrust on cotton prices, which is reflected in Indian cotton markets also. Domestic prices have reached MSP levels in some places of the State of Andhra Pradesh and are close to MSP levels in Maharashtra, Punjab, Rajasthan and Madhya Pradesh.