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Related Keywords: Commission for Agricultural Costs and Prices, cotton expected to increase next year., farmers preparing fields for kharif sowing, government, higher MSP and normal monsoon, long staple cotton, medium staple cotton, MSP of cotton, mulls increase minimum support price, recommendation of CACP

The government is mulling to increase the minimum support price (MSP) of cotton by Rs 160 per quintal, to Rs 4,320 for the 2017-18 crop year beginning July as farmers are preparing fields for kharif sowing.

According to sources, the Agriculture Ministry has proposed increase in cotton MSP by Rs 160 per quintal for the 2017-18 crop year, based on the recommendation of the Commission for Agricultural Costs and Prices (CACP).

Related Keywords: Commission for Agricultural Costs and Prices, compulsory provisions do not develop or diversify production lines, exempt sugar, foodgrain packaging, high-value products, IJMA, Indian jute industry, jute bags, jute mills, recommends reduction in compulsory packaging, rising prices of raw jute, union textile ministry

The Commission for Agricultural Costs & Prices (CACP) has recommended reduction in compulsory packaging to 75 percent, from the present 90 percent, in case of foodgrain. As these compulsory provisions do not encourage the jute industry to develop or diversify its production lines to high-value products. But according to the jute industry, if the Union government approves the recommendations it will stand to lose Rs1,000 crore in the 2016-17 season.

Related Keywords: advises government on pricing policy, Agriculture Ministry, boost jute production, Commission for Agricultural Costs and Prices, cultivation declining in recent years, inflationary trends, major farm produces, Niti Aayog pitched for marginal increase, proposed hike in MSP, raw jute, statutory body, Textile Ministry

The Agriculture Ministry in order to boost jute production has proposed hike in minimum support price (MSP) of raw jute because its cultivation has been declining in the recent year.

In the Cabinet note, Agriculture Ministry has proposed an 18.5 percent increase in jute MSP to ₹3,200 a quintal for 2016-17, which is in line with the CACP’s recommendation, according to sources.

In 2015-16, the jute support price was fixed at ₹2,700.