Indian Cotton Federation seek Prime Minister’s intervention for market stability
The Indian Cotton Federation (ICF) in order to bring price stability in the Indian market has requested the Prime Minister of India Narendra Modi to direct Cotton Corporation of India to procure 100 lakh bales in the current financial year.
Good cotton prices for cotton coupled with poor remunerative prices from alternative crops & favorable climatic conditions had encouraged farmers to grow more cotton for the 2017-18 season. With this India is sure to retain its position as the world’s largest producer of cotton with a record crop of 400 lakh bales (a bale is 170 kgs) expected this season.
However, with ICAC’s (International Cotton Advisory Committee) latest report predicting a similar situation in other cotton growing countries, resulting in 75 per cent surplus cotton globally in 2017-18 the increase in production in India may have a negative impact on Indian farmers.
"To support the farmers, Cotton Corporation of India (CCI) should be advised to act as a stabilizer for prices and procure around 100 lakh bales during the peak season and make it available for consuming mills during the non-season time," ICF President Thulasidharan said in a memorandum to the PM.
"This would stabilize prices for the benefit of the farmers across Gujarat, Maharashtra, Telangana, Andhra Pradesh and few more states with a monitoring mechanism to see that cotton prices do not dip and is around MSP (minimum support price)," he stated.
Indian government off late has been taking steps to boost cotton production in the country and encouraging farmers by giving them bonuses and incentives.
Recently, Gujarat government announced a bonus of Rs 100 per 20 kg for cotton to be paid to farmers who sell their crop to the Cotton Corporation of India which resulted in Rs 1,250 crore (approx $193 million) burden on the state exchequer.
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