| The foodgrain export policy scheme is expected to cost Rs 300 crore in the current fiscal. The scheme was sent to the finance ministry in September. The ministry, in its response last month, approved the scheme but asked the commerce ministry to find the funds on its own. |
| The food ministry has also indicated that it would not allow stocks from the Food Corporation of India to be used for the scheme.The commerce ministry has decided to let the Cabinet take a final view on the matter. |
| Textiles Minister Shankarsinh Vaghela today said the Cabinet was likely to approve the cotton export subsidy scheme, under which the government is targeting to export 2 million bales of cotton this year. |
| The proposal was taken up during the last Cabinet meeting, but could not be passed following the commerce ministry's objections that it was not WTO-compliant. |
| Vaghela, who met Maharashtra Chief Minister Vilasrao Deshmukh, said the Cotton Corporation of India would begin procurement in Maharashtra next week at the minimum support price (MSP). The ministry has directed the CCI to open 50 procurement centres in the state. |
| The government fixes the MSP of two varieties of cotton. While the superior variety's MSP has been fixed at Rs 1,960 per quintal, the one for the inferior variety has been fixed at Rs 1,760 per quintal. |
| The CCI was, however, not undertaking procurement operations in the state since the state government provides a monopoly procurement price, which is higher than the MSP. |
| Deshmukh said the state government was keen to get the CCI to begin procurement operations in the wake of the bumper cotton crop, which could bring prices down. |
| Under the Rs 100-crore cotton export subsidy scheme, the government would provide a subsidy of around 4 cents per pound of exports. In rupee terms, it would amount to a subsidy of Rs 2,000 per bale of cotton. |
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