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LATEST NEWS UPDATES | No hike in support price for cotton

No hike in support price for cotton

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published Published on Jun 11, 2010   modified Modified on Jun 11, 2010

The reported decision of the Cabinet Committee on Economic Affairs taken at a meeting, chaired by Prime Minister Manmohan Singh, to keep the minimum support price of cotton unchanged for kharif season 2010-11 has left three million growers of the state unhappy.

Vidarbha Jan Andolan Samiti president Kishore Tiwari said, "The prices were last revised in 2008-09 and during election year it were raised to Rs 3,000 a quintal more out of compulsion. But the Commission for Agricultural Costs and Prices (CACP) had last year recommended a hike up to Rs 3,500 based on the factors like cost of production, rise in input prices, input-output price parity, trends in open market prices, demand and supply situation, international price situation, prices paid and received by farmers and implications on national and international subsidy structure. What is shocking is that the recommendation for a valid hike was rejected by the government," said Tiwari.

"While the MSP is un-changed, factors like increasing cost of production, crop failure due to drought and aggravated economic distress in the cotton belt will affect farmers in the coming season," said Tiwari. "This is betrayal of farmers in Vidarbha where cotton is the main cash crop," he added. The VJAS has written to the prime minister demanding that the cotton MSP be hiked to at least Rs 3,500 a quintal.

Even for paddy growers of eastern Vidarbha, there is not much relief as the MSP hike of Rs 50 a quintal is not adequate," the VJAS claimed. In case of the widely consumed arhar dal (tur), the MSP has been increased to Rs 3,000 a quintal from Rs 2,300. But the market price of tur for whole of last year was more than Rs 3,800, Tiwari pointed out. Similarly, moong, another popular pulse, will now get MSP of Rs 3,170 a quintal, up from Rs 2,760. Support price for urad has been increased to 2,900 from Rs 2,520. "The modest hike will hardly attract farmers to take up foodgrains and pulses cultivation in the coming season. Thus, the government will not be able to meet the targets set for grains and pulses and short-supply would further fuel retail prices," Tiwari warned.

"The UPA government is urged to review MSP of cotton to Rs 3,500 from Rs 3,000 and that of soyabean to Rs 2,000 from Rs1,560 a quintal in order to save the dying farmers," Tiwari said in a message faxed to the PM.


The Times of India, 12 June, 2010, http://timesofindia.indiatimes.com/city/nagpur/No-hike-in-support-price-for-cotton/articleshow/6039592.cms


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