Lok Sabha Question No. 1069 (UNSTARRED), answered on 2020-09-18
Subject: MSP for Cotton
Ministry: TEXTILES
Asked by: Lavu Sri Krishna Devarayalu

## LOK SABHA UNSTARRED QUESTION NO. 1069 TO BE ANSWERED ON 18.09.2020

## MSP FOR COTTON

## 1069.  SHRI LAVU SRI KRISHNA DEVARAYALU:

Will the Minister of TEXTILES वस्त्र मंत्री be pleased to state :

- (a) the details of total production of cotton in the country during the previous year and the current year, State-wise alongwith the MSP set for cotton during the current year;
- (b) whether Cotton Corporation of India is purchasing cotton in all States as per MSP and if not, the reasons therefor;
- (c) whether it is true that some States and farmers are demanding more price for cotton, if so, the details of steps taken/being taken by the Government in this regard;
- (d) whether it is also true that there are demands to purchase cotton even if the moisture content is between 18-20% in view of heavy rains in the country during this monsoon, if so, the details of the decision taken by the Government in this regard and the steps taken/being taken by the Government to give cotton farmers a better price; and
- (e)  whether  there  is  any  impact  on  cotton  cultivation  due  to  COVID-19  and  if  so,  the  details thereof?

## उत्तर

## ANSWER

## वस्त्र मंत्री ( श्रीमती स्मृतत ज़ूबिन इरानी )

MINISTER OF TEXTILES

(SMT. SMRITI ZUBIN IRANI)

- (a): State-wise production of cotton during current cotton season and previous cotton season, as estimated by Cotton Advisory Board (CAB) are as under:-

| State          | Cotton Production (in lakh bales)   | Cotton Production (in lakh bales)   |
|----------------|-------------------------------------|-------------------------------------|
| State          | 2018-19                             | 2019-20                             |
| Punjab         | 10.00                               | 13.00                               |
| Haryana        | 23.00                               | 22.00                               |
| Rajasthan      | 26.00                               | 25.00                               |
| Gujarat        | 87.50                               | 95.00                               |
| Maharashtra    | 75.50                               | 82.00                               |
| Madhya Pradesh | 24.00                               | 20.00                               |
| Telangana      | 43.00                               | 53.00                               |
| Andhra Pradesh | 14.50                               | 20.00                               |
| Karnataka      | 15.00                               | 18.00                               |
| Tamil Nadu     | 5.00                                | 6.00                                |
| Orissa         | 4.50                                | 4.00                                |
| Others         | 2.00                                | 2.00                                |
| Total          | 330.00                              | 360.00                              |

Minimum Support Price (MSP) of Fair Average Quality (FAQ) grade seed cotton fixed by the Government for current cotton season 2019-20 and previous cotton season 2018-19 is as under:-

| FAQ grade variety    | MSP in Rs./Quintal   | MSP in Rs./Quintal   |
|----------------------|----------------------|----------------------|
|                      | 2018-19              | 2019-20              |
| Medium Staple Cotton | 5150                 | 5255                 |
| Long Staple Cotton   | 5450                 | 5550                 |

- (b): The Cotton Corporation of India (CCI) is purchasing cotton under Minimum Support Price (MSP) operations in all the cotton growing states by operating more than 400 cotton procurement centres.  State-wise  procurement  of  cotton  under  MSP  operations  by  CCI  during  current  cotton season 2019-20 is given below:-
- (c): No such report has been received.
- (d): Every year, there have been the demands from the farmers of various cotton growing states for  procurement  of  excess  moistured  cotton.  However,  as  per  Minimum  Support  Price  (MSP) guidelines,  Cotton  Corporation  of  India  (CCI)  Limited  is  mandated  to  purchase  Fair  Average Quality  (FAQ)  grade  cotton  only.    CCI  maintained  FAQ  norms  in  all  procurement  of  cotton wherein maximum permissible limit for moisture content is 12 percent.

| State          |   MSP Purchases during cotton season 2019-20 as on 13.09.20 (Qty in Lakh bales) |
|----------------|---------------------------------------------------------------------------------|
| Punjab         |                                                                            3.56 |
| Haryana        |                                                                            6.23 |
| Rajasthan      |                                                                            3.76 |
| Gujarat        |                                                                           11.05 |
| Maharashtra    |                                                                           26.25 |
| Madhya Pradesh |                                                                            4.43 |
| Telangana      |                                                                           41.8  |
| Andhra Pradesh |                                                                            2.68 |
| Karnataka      |                                                                            3.49 |
| Orissa         |                                                                            1.61 |
| Tamil Nadu     |                                                                            0.28 |
| Total          |                                                                          105.14 |

In  order  to  motivate  farmers  to  realize  appropriate  prices  for  their  cotton,  the  benefits  of bringing  dry  cotton  for  sale  in  Agricultural  Produce  Market  Committees  (APMCs)  are  being emphasized by displaying posters by CCI at prominent places like villages, APMC, G&P factories, etc. Further, CCI has given wide publicity through print media, banners and posters at all prominent places  like  market  yards,  villages  and  G&P  factory  to  apprise  the  farmers  of  its  presence  and assurance that CCI will be present in the market till last arrivals of FAQ cotton conclude.

- (e): As  per  Cotton  Crop  report  dated  10.09.2020  of  Directorate  of  Cotton  Development, Ministry of Agriculture and Farmers' Welfare, cotton cultivation for ensuing cotton season 2020-21 is  expected  to  increase  by  around  3%  to  around  130  lakh  hectares  in  comparison  to  126  lakh hectares during cotton season 2019-20. Thus, there is no adverse impact on cotton cultivation due to COVID -19.

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