Lok Sabha Question No. 3346 (UNSTARRED), answered on 2019-01-01
Subject: Decline in Cotton Prices
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: HARI BABU KAMBHAMPATI

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA

## UNSTARRED QUESTION NO.3346

TO BE ANSWERED ON THE 1 ST  JANUARY, 2019

## DECLINE  IN  COTTON  PRICES

3346.     DR.  KAMBHAMPATI HARIBABU:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether it is a fact that there is a considerable decline in cotton prices in the country, if so, the details thereof;
- (b) the  details  of  the  production  of cotton in the country for the current year, State-wise; and
- (c) the  details  of  minimum  support price fixed by the Government to buy the cotton from farmers and the procurement by the CCI for the current year, State-wise?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  GAJENDRA SINGH SHEKHAWAT)

- (a): The  prices  of  agricultural  produce  including  Cotton  are  determined  by  supply  and demand  conditions  in  the  market  on  a  day-to-day  basis.    Apart  from  demand  and  supply conditions, availability of stocks and international prices are also affecting prices of cotton.   The all India average monthly wholesale prices and Minimum Support Price (MSP) of  cotton during 2018 are given below:

(Rs. Per Quintal)

|         |                  | MSP           | MSP         |
|---------|------------------|---------------|-------------|
| Months  | Wholesale prices | Medium Staple | Long Staple |
|         |                  | 2017-18       | 2017-18     |
| Apr-18  | 4305             | 4020          | 4320        |
| May-18  | 4449             | 4020          | 4320        |
| Jun-18  | 5143             | 4020          | 4320        |
| Jul-18  | 5369             | 4020          | 4320        |
| Aug-18  | 5675             | 4020          | 4320        |
| Sept-18 | 5542             | 4020          | 4320        |
|         |                  | 2018-19       | 2018-19     |
| Oct-18  | 5598             | 5150          | 5450        |
| Nov-18  | 5433             | 5150          | 5450        |
| Dec-18* | 5416             | 5150          | 5450        |

(b): As per first Advance Estimates, State-wise  Production of Cotton  for 2018-19 are given below:

(Lakh Bales)

| State          |   Production * |
|----------------|----------------|
| Andhra Pradesh |           17.5 |
| Gujarat        |           88.3 |
| Haryana        |           26.4 |
| Karnataka      |           15.2 |
| Madhya Pradesh |           20   |
| Maharashtra    |           78.3 |
| Orissa         |            4.5 |
| Punjab         |           11.7 |
| Rajasthan      |           17.3 |
| Tamilnadu      |            4.3 |
| Telangana      |           40.1 |
| Others         |            1.2 |
| All-India      |          324.8 |

*   170 kgs each.

(c): The MSP of Rs. 5150 (for Medium Staple) and Rs. 5450 (for long Staple) has been fixed by the Government to provide at least 50 percent returns over weighted average cost of production as estimated by the Commission for Agricultural Costs and Prices (CACP). While formulating its recommendations on price policy, CACP considers cost of production, trends in market  prices,  demand  and  supply  situation,  effect  on  general  price  level,  effect  on  cost  of living  etc.  Statement  showing  State-wise  procurement  by  Cotton  Corporation  of  India  (CCI) under MSP during current cotton season upto 24.12.2018 is as under:

| State          |   Procurement under MSP by CCI (Qty of kapas equivalent to bales of 170 kgs each) |
|----------------|-----------------------------------------------------------------------------------|
| Gujarat        |                                                                               597 |
| Maharashtra    |                                                                              9310 |
| Madhya Pradesh |                                                                             16027 |
| Telangana      |                                                                            138512 |
| Andhra Pradesh |                                                                              3256 |
| Karnataka      |                                                                              2143 |
| Orissa         |                                                                               180 |
| Total          |                                                                            170025 |

********