Indian govt sets minimum price for cotton

The Government of India announced the minimum support price (MSP) for Kapas (seed cotton) for the current season (October 2014-September 2015).

According to the government release, the minimum support price for Shankar (S-6) grown in Gujarat for quintal (100 kg) will be Rs 4,000 ($65.57). MSPs for the other varieties such as Bunny (grown in Andhra Pradesh) will be Rs 4,050 ($66.39), Bunny (grown in Maharashtra) will be Rs 4,050 ($66.39), H-4/H-6 (grown in Maharashtra) will be Rs 3,950 ($64.75), and J34 (grown in North Zone of India) will be Rs 3,950 ($64.75).

The government has fixed MSPs, as the cotton prices in the international market are running lower than the price during the same period in the last year due to estimated lower demand by China and increased supply.

The Cotton Corporation of India (CCI) will procure cotton at the MSP level from 341 centres distributed in 11 cotton-growing states. Currently, the market prices of cotton in the states of Andhra Pradesh, Telangana and Maharashtra are below the MSP levels.