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The Ministry of Textiles has directed the Cotton Corporation of India to commence Minimum Support Price operations in Maharashtra at the normal terms and conditions immediately. The procurement is likely to start from 08.01.05. The Government of Maharashtra had earlier commenced its operations under the Monopoly Procurement Scheme at Guaranteed prices. Hence the Corporation could not undertake its MSP operations in the state. The Government of India had permitted the Corporation to commence purchases subject to Government of Maharashtra repelling the Monopoly Procurement Act. The Government of Maharashtra has recently clarified to the Government of India that CCI is free to undertake MSP operations in Maharashtra in the same manner as in other parts in the country. Accordingly the Government of India on 6th January 2005 has directed CCI to commence MSP operations in the State of Maharashtra immediately.
Cotton production during current cotton season 2004-05 is expected to reach a record level of 213.00 lakh bales as against 177.00 lakh bales during the previous season. Initially during the season, the prevailing kapas prices in the Northern States of Punjab, Haryana, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh had been ruling higher by 7 to 28 per cent than the Minimum Support Prices announced by the Government of India.
However, since beginning of the season, the prevailing prices in the Southern States of Andhra Pradesh and Karnataka, have been ruling at MSP level. Hence, in order to avoid distress sales by the farmers and to ensure remunerative prices to the cotton farmers, the Corporation has commenced its MSP operations in these States.
In all other States, the Corporation had undertaken its commercial operations to lend support to the prices. However, since 25th November 2004, the prevailing kapas prices in all the cotton growing States have touched the MSP level and the Corporation, being the nominated agency of the Government of India to undertake Price Support Operations, has commenced its MSP operations in all the cotton growing States, except Maharashtra.
For carrying out the massive price support operations the Corporation has opened 2445 centres in nearly 73 districts of the country. The Corporation has so far purchased 55,56,301 quintals of kapas equivalent to 10,58,343 bales under MSP operations and 2,27,210 quintals of kapas equivalent to 43,278 bales under commercial operations, thus totaling 107,40,156 quintals of kapas equivalent to 11,06,621 bales. The MSP operations of the Corporation are in progress and the same shall continue till the last day of arrivals to avoid any distress sales by the farmers as also to ensure remunerative prices to the cotton growers for their produce.
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