Textile industry to buy cotton and jute from farmers at the MSPs; Agri Ministry to issue new mandate
With a proposed mandate by the Agriculture Ministry, the textile industry will have to buy cotton and jute from farmers at the MSPs. The crucial move is a part of the Central government’s initiative to support the farmers to ensure a 50% profit over the cost of production.
The proposal also aims to cut down the Centre’s procurement expenses. Inter-ministerial consultations are currently being held on procurement-based price support schemes for agricultural crops.
The ministry’s proposal is reported to have serious implications like inflating the cost of cotton. MSP for cotton will increase by at least 28% in 2018-19 from the current level if the government’s promise to farmers is to be met.
“For cotton and jute, there are two options. Either the Cotton Corporation of India (CCI) and the Jute Corporation have to buy the two crops at MSP everywhere and later sell it in the open market, or the mills are asked to buy at MSP and in return get some incentives,” said a government official.
But, according to reports, the textile ministry will most likely oppose the farm ministry’s idea. “We are unaware of any such proposal on cotton procurement that will potentially render the Cotton Corporation of India irrelevant,” said a senior textile ministry official.
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