Sluggish export demand and anticipated higher domestic production have resulted in rates falling below MSP in few states of India. Minister of State for Agriculture Mohanbhai Kundaria said in a written reply to the Lok Sabha that prices of cotton are below MSP in the states of Andhra Pradesh, Telangana and Maharashtra in the current cotton season 2014-15.

The Cotton Corporation of India (CCI) will procure cotton from farmers in 11 producing states as the rates have fallen below the minimum support price (MSP) in Andhra Pradesh, Telangana and Maharashtra, Parliament was informed today.

CCI has initiated action for procurement of cotton from growers at MSP in 341 centres located in 92 districts in 11 cotton growing states.

CCI is the government's nodal agency to procure cotton at the MSP, which is currently Rs 4,050/quintal for long staple.

The domestic cotton prices depend on a number of factors including previous balance, current supply, as well as future demand in both domestic and international markets.

At present, cotton prices in international markets are ruling lower than the prices that prevailed during the corresponding period last year primarily due to lower demand by China and increased supply from the USA.