Lok Sabha Question No. 1189 (UNSTARRED), answered on 2019-06-28
Subject: Procurement of Silk by Cotton Corporation of India
Ministry: TEXTILES
Asked by: Bhartruhari Mahtab, Rahul Ramesh Shewale

## LOK SABHA UNSTARRED QUESTION NO. 1189 TO BE ANSWERED ON 28.6.2019

## PROCUREMENT OF SILK BY COTTON CORPORATION OF INDIA

## 1189.   SHRI BHARTRUHARI MAHTAB: SHRI RAHUL RAMESH SHEWALE:

## Will the Minister of TEXTILES वस्त्र मंरी be pleased to state:

- (a) whether the Cotton Corporation of India has procured cotton from farmers of various States at Minimum Support Price during each of the last three years and the current year;
- (b) if so, the details thereof, State-wise and if not, the reasons therefor;
- (c) whether the Government has increased the MSP of cotton in proportion to rate of inflation and rise in input costs during the said period;
- (d) if so, the details thereof and if not, the reasons therefor;
- (e) whether  the  cotton  growers  are  getting  adequate  price  for  their  produce  during  the  said period to enable them to repay their loans and meet their household expenses;
- (f) if so, the details thereof, State-wise and if not, the reasons therefor; and
- (g) the steps taken/being taken by the Government to give remunerative price of cotton to the farmers?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्त्म ृ तत ज़ूबिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a) & (b): Yes, Sir. The Cotton Corporation of India (CCI) is undertaking Minimum Support Price (MSP) operations when prices of  Fair Average Quality (FAQ) grade kapas fall below the MSP level and procure entire quantity of FAQ grade kapas offered by the cotton farmers in various Agricultural  Produce  Market  Committees  (APMCs)  market  yards  at  MSP.    Statement  showing procurement  of  cotton  under  MSP  by  CCI  during  last  three  cotton  years  (1 st October  to  30 th September) and current cotton year is given below:-

(Quantity in Lakh bales of 170 kg each)

|                     | 2015-16   | 2016-17   | 2017-18   | 2018-19 (As on 23.6.2019)   |
|---------------------|-----------|-----------|-----------|-----------------------------|
| Punjab              | -         | -         | -         | -                           |
| Haryana             | -         | -         | -         | -                           |
| Rajasthan           | -         | -         | -         | -                           |
| Gujarat             | 0.515     | -         | 0.951     | 0.08                        |
| Maharashtra         | 1.168     | -         | 0.146     | 1.96                        |
| Madhya Pradesh      | 0.291     | -         | 0.078     | 0.51                        |
| Telangana           | 5.952     | -         | 2.635     | 7.77                        |
| Andhra Pradesh      | 0.400     | -         | 0.065     | 0.05                        |
| Karnataka           |           | -         | 0.003     | 0.08                        |
| Orissa              | 0.116     | -         | 0.020     | 0.25                        |
| West Bengal &Others | 0.004     | 0.005     | 0.004     | -                           |
| Total               | 8.445     | 0.005     | 3.902     | 10.70                       |

Note: During  cotton  season  2016-17,  since  beginning  average  seed  cotton  prices  were ruling  above  MSP  level.  Hence,  there  were  no  offers  of  cotton  at  MSP  from farmers,  though  CCI  remained  present  in  the  market  yards  throughout  the  cotton season for procuring cotton at MSP.

(c) & (d): Yes, Sir. The MSP fixed by the Ministry of Agriculture for the last few years is given below:-

(Rs. Per quintal)

| Cotton Season   | Medium Staple   | Long   | %increase over previous year   | %increase over previous year   |
|-----------------|-----------------|--------|--------------------------------|--------------------------------|
|                 |                 | Staple | Medium Staple                  | Long Staple                    |
| 2015-16         | 3800            | 4100   | 1.3                            | 1.2                            |
| 2016-17         | 3860            | 4160   | 1.6                            | 1.5                            |
| 2017-18         | 4020            | 4320   | 4.1                            | 3.8                            |
| 2018-19         | 5150            | 5450   | 28.1                           | 26.2                           |

Based on the Support Price of these two basic varieties of Seed cotton (Kapas) and taking into account the quality differential, normal price differential and other relevant factors, the MSP for other staple varieties of cotton are fixed by the Textile Commissioner, Mumbai.

(e)  &  (f): Yes,  Sir.  Cotton  growers  are  getting  adequate  price  for  their  produce.    Statement showing comparison between market rates & MSP of major cotton varieties during last three years and current  year is attached herewith at Annexure which shows that during last three  years and current  year,  most  of  the  time  market  rates  of  kapas  have  been  ruling  higher  in  comparison  to MSP.

(g): With a view to give remunerative price of cotton to  the  farmers,  Government  has  taken following initiatives:-

- i) Ministry  of  Agriculture,  Government  of  India  fixes  the  Minimum  Support  Price (MSP) of two varieties of seed cotton (kapas) every year before commencement of the Cotton Season (October to September).  In order to ensure better productivity and  production  and  to  protect  the  interest  of  farmers,  Government  of  India  has increased the MSP for 2018-19 by 28% and 26% for Medium Staple Cotton and Long Staple Cotton respectively.
2. ii) Nominated  the  Cotton  Corporation  of  India  (CCI)  as  nodal  agency  to  undertake MSP operation in all cotton growing States, in the event when prices of seed cotton (kapas) touches the MSP level, to purchase entire quantity of kapas (FAQ grade) offered by the cotton farmers in various APMC market yards at MSP rates.
3. iii) Around 350 procurement centres have been opened in all the cotton growing States. CCI  Procurement  Officials  remain  present  at  procurement  centres  right  from  the beginning  of  the  cotton  season  to  ensure  minimum  support  prices  to  the  cotton farmers wherever the prevailing kapas prices fall below MSP.
4. iv) Disseminating the necessary information regarding MSP rates to cotton farmers by displaying  banners  in  APMCs,  advertisements  in  newspapers,  distribution  of pamphlets to individual farmers etc.
- v) Initiated electronic generation of purchase bill/ takpatti against the cotton procured from  farmers  in  APMCs  to  avoid  delay  in  releasing  the  payments  to  the  cotton farmers.
6. vi) Implemented 100% payment of kapas purchased under MSP to the cotton farmers directly in their bank account through online.
7. vii) Developed a farmer friendly mobile app, 'Cott-Ally' to have direct interaction and outreach  with  the  cotton  farmers  and  to  keep  the  cotton  farmers  informed  about various  information  related  to  Minimum  Support  Price  operations,  tracking  of payments status etc.

## Annexure

## Statement showing comparison between market rates of major cotton varieties and  MSP during last three years and current year

## Average Kapas Prices (Rs./ Quintal)

|                                                    | 2018-19                                                                                  | 2018-19                                                                                  | 2018-19                                                                                  | 2017-18                                                                                  | 2017-18                                                                                  | 2017-18                                                                                  | 2016-17                                                                                  | 2016-17                                                                                  | 2016-17                                                                                  | 2015-16                                                                                  | 2015-16                                                                                  | 2015-16                                                                                  |
|----------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
| Date                                               | Market Rate                                                                              | MSP                                                                                      | %increase/ Decrease in market rates over MSP                                             | Market Rate                                                                              | MSP                                                                                      | %increase/ Decrease in market rates over MSP                                             | Market Rate                                                                              | MSP                                                                                      | %increase/ Decrease in market rates over MSP                                             | Market Rate                                                                              | MSP                                                                                      | %increase/ Decrease in market rates over MSP                                             |
|                                                    | Bunny Brahma variety (30 mm) (Gujarat, Maharashta, MP, AP, Telangana, Karnataka, Odisha) | Bunny Brahma variety (30 mm) (Gujarat, Maharashta, MP, AP, Telangana, Karnataka, Odisha) | Bunny Brahma variety (30 mm) (Gujarat, Maharashta, MP, AP, Telangana, Karnataka, Odisha) | Bunny Brahma variety (30 mm) (Gujarat, Maharashta, MP, AP, Telangana, Karnataka, Odisha) | Bunny Brahma variety (30 mm) (Gujarat, Maharashta, MP, AP, Telangana, Karnataka, Odisha) | Bunny Brahma variety (30 mm) (Gujarat, Maharashta, MP, AP, Telangana, Karnataka, Odisha) | Bunny Brahma variety (30 mm) (Gujarat, Maharashta, MP, AP, Telangana, Karnataka, Odisha) | Bunny Brahma variety (30 mm) (Gujarat, Maharashta, MP, AP, Telangana, Karnataka, Odisha) | Bunny Brahma variety (30 mm) (Gujarat, Maharashta, MP, AP, Telangana, Karnataka, Odisha) | Bunny Brahma variety (30 mm) (Gujarat, Maharashta, MP, AP, Telangana, Karnataka, Odisha) | Bunny Brahma variety (30 mm) (Gujarat, Maharashta, MP, AP, Telangana, Karnataka, Odisha) | Bunny Brahma variety (30 mm) (Gujarat, Maharashta, MP, AP, Telangana, Karnataka, Odisha) |
| 1-Oct                                              | 5250                                                                                     | 5450                                                                                     | -3.8%                                                                                    | 4375                                                                                     | 4320                                                                                     | 1.3%                                                                                     | 4500                                                                                     | 4160                                                                                     | 7.6%                                                                                     | 4200                                                                                     | 4050                                                                                     | 3.6%                                                                                     |
| 31-Oct                                             | 5500                                                                                     | 5450                                                                                     | 0.9%                                                                                     | 4250                                                                                     | 4320                                                                                     | -1.6%                                                                                    | 4650                                                                                     | 4160                                                                                     | 10.5%                                                                                    | 4000                                                                                     | 4050                                                                                     | -1.3%                                                                                    |
| 30-Nov                                             | 5350                                                                                     | 5450                                                                                     | -1.9%                                                                                    | 4250                                                                                     | 4320                                                                                     | -1.6%                                                                                    | 4850                                                                                     | 4160                                                                                     | 14.2%                                                                                    | 4070                                                                                     | 4050                                                                                     | 0.5%                                                                                     |
| 31-Dec                                             | 5320                                                                                     | 5450                                                                                     | -2.4%                                                                                    | 4800                                                                                     | 4320                                                                                     | 10.0%                                                                                    | 5100                                                                                     | 4160                                                                                     | 18.4%                                                                                    | 4250                                                                                     | 4050                                                                                     | 4.7%                                                                                     |
| 31-Jan                                             | 5400                                                                                     | 5450                                                                                     | -0.9%                                                                                    | 4700                                                                                     | 4320                                                                                     | 8.1%                                                                                     | 5450                                                                                     | 4160                                                                                     | 23.7%                                                                                    | 4270                                                                                     | 4050                                                                                     | 5.2%                                                                                     |
| 28-Feb                                             | 5408                                                                                     | 5450                                                                                     | -0.8%                                                                                    | 4650                                                                                     | 4320                                                                                     | 7.1%                                                                                     | 5425                                                                                     | 4160                                                                                     | 23.3%                                                                                    | 4150                                                                                     | 4050                                                                                     | 2.4%                                                                                     |
| 30-Mar                                             | 5596                                                                                     | 5450                                                                                     | 2.6%                                                                                     | 4650                                                                                     | 4320                                                                                     | 7.1%                                                                                     | 5400                                                                                     | 4160                                                                                     | 23.0%                                                                                    | 4160                                                                                     | 4050                                                                                     | 2.6%                                                                                     |
| 30-Apr                                             | 5850                                                                                     | 5450                                                                                     | 6.8%                                                                                     | 4600                                                                                     | 4320                                                                                     | 6.1%                                                                                     | 5350                                                                                     | 4160                                                                                     | 22.2%                                                                                    | 4715                                                                                     | 4050                                                                                     | 14.1%                                                                                    |
| 31-May                                             | 5970                                                                                     | 5450                                                                                     | 8.7%                                                                                     | 4650                                                                                     | 4320                                                                                     | 7.1%                                                                                     | 5150                                                                                     | 4160                                                                                     | 19.2%                                                                                    | 5003                                                                                     | 4050                                                                                     | 19.0%                                                                                    |
|                                                    | S-6 variety (28.5 mm)(Gujarat)                                                           | S-6 variety (28.5 mm)(Gujarat)                                                           | S-6 variety (28.5 mm)(Gujarat)                                                           | S-6 variety (28.5 mm)(Gujarat)                                                           | S-6 variety (28.5 mm)(Gujarat)                                                           | S-6 variety (28.5 mm)(Gujarat)                                                           | S-6 variety (28.5 mm)(Gujarat)                                                           | S-6 variety (28.5 mm)(Gujarat)                                                           | S-6 variety (28.5 mm)(Gujarat)                                                           | S-6 variety (28.5 mm)(Gujarat)                                                           | S-6 variety (28.5 mm)(Gujarat)                                                           | S-6 variety (28.5 mm)(Gujarat)                                                           |
| 1-Oct                                              | 5650                                                                                     | 5400                                                                                     | 4.4%                                                                                     | 4100                                                                                     | 4270                                                                                     | -4.1%                                                                                    | 5650                                                                                     | 4110                                                                                     | 27.3%                                                                                    | 4325                                                                                     | 4000                                                                                     | 7.5%                                                                                     |
| 31-Oct                                             | 5625                                                                                     | 5400                                                                                     | 4.0%                                                                                     | 4625                                                                                     | 4270                                                                                     | 7.7%                                                                                     | 5050                                                                                     | 4110                                                                                     | 18.6%                                                                                    | 4275                                                                                     | 4000                                                                                     | 6.4%                                                                                     |
| 30-Nov                                             | 5550                                                                                     | 5400                                                                                     | 2.7%                                                                                     | 4575                                                                                     | 4270                                                                                     | 6.7%                                                                                     | 5075                                                                                     | 4110                                                                                     | 19.0%                                                                                    | 4375                                                                                     | 4000                                                                                     | 8.6%                                                                                     |
| 31-Dec                                             | 5475                                                                                     | 5400                                                                                     | 1.4%                                                                                     | 4950                                                                                     | 4270                                                                                     | 13.7%                                                                                    | 5300                                                                                     | 4110                                                                                     | 22.5%                                                                                    | 4775                                                                                     | 4000                                                                                     | 16.2%                                                                                    |
| 31-Jan                                             | 5465                                                                                     | 5400                                                                                     | 1.2%                                                                                     | 4740                                                                                     | 4270                                                                                     | 9.9%                                                                                     | 5700                                                                                     | 4110                                                                                     | 27.9%                                                                                    | 4700                                                                                     | 4000                                                                                     | 14.9%                                                                                    |
| 28-Feb                                             | 5425                                                                                     | 5400                                                                                     | 0.5%                                                                                     | 4750                                                                                     | 4270                                                                                     | 10.1%                                                                                    | 5775                                                                                     | 4110                                                                                     | 28.8%                                                                                    | 4700                                                                                     | 4000                                                                                     | 14.9%                                                                                    |
| 30-Mar                                             | 5855                                                                                     | 5400                                                                                     | 7.8%                                                                                     | 4625                                                                                     | 4270                                                                                     | 7.7%                                                                                     | 5850                                                                                     | 4110                                                                                     | 29.7%                                                                                    | 4700                                                                                     | 4000                                                                                     | 14.9%                                                                                    |
| 30-Apr                                             | 6050                                                                                     | 5400                                                                                     | 10.7%                                                                                    | 5000                                                                                     | 4270                                                                                     | 14.6%                                                                                    | 5700                                                                                     | 4110                                                                                     | 27.9%                                                                                    | 4825                                                                                     | 4000                                                                                     | 17.1%                                                                                    |
| 31-May                                             | 6025                                                                                     | 5400                                                                                     | 10.4%                                                                                    | 5050                                                                                     | 4270                                                                                     | 15.4%                                                                                    | 5675                                                                                     | 4110                                                                                     | 27.6%                                                                                    | 5200                                                                                     | 4000                                                                                     | 23.1%                                                                                    |
| J-34 variety (27.5mm) (Punjab, Haryana, Rajasthan) | J-34 variety (27.5mm) (Punjab, Haryana, Rajasthan)                                       | J-34 variety (27.5mm) (Punjab, Haryana, Rajasthan)                                       | J-34 variety (27.5mm) (Punjab, Haryana, Rajasthan)                                       | J-34 variety (27.5mm) (Punjab, Haryana, Rajasthan)                                       | J-34 variety (27.5mm) (Punjab, Haryana, Rajasthan)                                       | J-34 variety (27.5mm) (Punjab, Haryana, Rajasthan)                                       | J-34 variety (27.5mm) (Punjab, Haryana, Rajasthan)                                       | J-34 variety (27.5mm) (Punjab, Haryana, Rajasthan)                                       | J-34 variety (27.5mm) (Punjab, Haryana, Rajasthan)                                       | J-34 variety (27.5mm) (Punjab, Haryana, Rajasthan)                                       | J-34 variety (27.5mm) (Punjab, Haryana, Rajasthan)                                       | J-34 variety (27.5mm) (Punjab, Haryana, Rajasthan)                                       |
| 1-Oct                                              | 5150                                                                                     | 5350                                                                                     | -3.9%                                                                                    | 4275                                                                                     | 4220                                                                                     | 1.3%                                                                                     | 5325                                                                                     | 4060                                                                                     | 23.8%                                                                                    | 4520                                                                                     | 4000                                                                                     | 11.5%                                                                                    |
| 31-Oct                                             | 5270                                                                                     | 5350                                                                                     | -1.5%                                                                                    | 4625                                                                                     | 4220                                                                                     | 8.8%                                                                                     | 5150                                                                                     | 4060                                                                                     | 21.2%                                                                                    | 4645                                                                                     | 4000                                                                                     | 13.9%                                                                                    |
| 30-Nov                                             | 5400                                                                                     | 5350                                                                                     | 0.9%                                                                                     | 4630                                                                                     | 4220                                                                                     | 8.9%                                                                                     | 5270                                                                                     | 4060                                                                                     | 23.0%                                                                                    | 4370                                                                                     | 4000                                                                                     | 8.5%                                                                                     |
| 31-Dec                                             | 5450                                                                                     | 5350                                                                                     | 1.8%                                                                                     | 5240                                                                                     | 4220                                                                                     | 19.5%                                                                                    | 5390                                                                                     | 4060                                                                                     | 24.7%                                                                                    | 4770                                                                                     | 4000                                                                                     | 16.1%                                                                                    |
| 31-Jan                                             | 5410                                                                                     | 5350                                                                                     | 1.1%                                                                                     | 5110                                                                                     | 4220                                                                                     | 17.4%                                                                                    | 5830                                                                                     | 4060                                                                                     | 30.4%                                                                                    | 4680                                                                                     | 4000                                                                                     | 14.5%                                                                                    |
| 28-Feb                                             | 5417                                                                                     | 5350                                                                                     | 1.2%                                                                                     | 4950                                                                                     | 4220                                                                                     | 14.7%                                                                                    | 5990                                                                                     | 4060                                                                                     | 32.2%                                                                                    | 4720                                                                                     | 4000                                                                                     | 15.3%                                                                                    |
| 30-Mar                                             | 5840                                                                                     | 5350                                                                                     | 8.4%                                                                                     | 4600                                                                                     | 4220                                                                                     | 8.3%                                                                                     | 6000                                                                                     | 4060                                                                                     | 32.3%                                                                                    | 4650                                                                                     | 4000                                                                                     | 14.0%                                                                                    |
| 30-Apr                                             | 6115                                                                                     | 5350                                                                                     | 12.5%                                                                                    | 4860                                                                                     | 4220                                                                                     | 13.2%                                                                                    |                                                                                          |                                                                                          |                                                                                          |                                                                                          |                                                                                          |                                                                                          |
| 31-May                                             | 5990                                                                                     | 5350                                                                                     | 10.7%                                                                                    | 5130                                                                                     | 4220                                                                                     | 17.7%                                                                                    |                                                                                          |                                                                                          |                                                                                          |                                                                                          |                                                                                          |                                                                                          |

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