Textiles Minister reviews cotton price situation

Concerned over falling cotton prices, Textiles Minister Santosh Gangwar today directed the Cotton Corporation of India to closely monitor the price situation and ensure online payments to farmers' bank account directly as envisaged under Pradhan Mantri Jan Dhan Yojana.
Cotton prices are now ruling below minimum support price (MSP) of Rs 4,050 per quintal in Andhra Pradesh, Telangana and even in other growing states. State-run Cotton Corporation of India (CCI) has started buying cotton at the MSP in Andhra Pradesh and Telangana.
Gangwar convened a meeting to take stock of the price situation with Cotton Corporation of India (CCI) officials, an official release said.

The Minister also directed CCI to open more centres wherever required and stressed on the need to boost cotton exports by exploring new regions and devising other measures for the purpose of promoting exports.
The pace of cotton arrival is slow in major growing states even as production is expected to be higher.
CCI has so far procured more than 60,000 bales in AP and Telangana at the MSP rate, while it has not yet began procurement operations in other states like Maharashtra even as prices are ruling below the support price.
Domestic cotton prices have fallen due to sluggish export demand and anticipated higher domestic production.

The Cotton Advisory Board has pegged the country's total cotton production at over 40 million bales in the 2014-15 crop year, as against 39.8 million bales in 2013-14. One bale contains 170 kg of cotton.