The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi has increased minimum support price (MSP) for cotton for the 2015-16 season by Rs 50 per quintal.
For medium staple cotton, the MSP has been hiked to Rs 3,800 per quintal in 2015-16 from Rs 3,750 per quintal in the previous season.
In case of long staple cotton, the MSP has been raised to Rs 4,100 per quintal in the current season from Rs 4,050 per quintal in the 2014-15 season, also up Rs 50 per quintal.
The decision is based on recommendations of Commission for Agricultural Costs and Prices (CACP) for the price policy for kharif crops for the marketing season 2015-16, according to a PIB release.
When compared with the 2006-2007 season, the MSP of both varieties has progressively been raised in the intervening years and has more than doubled in the 2015-16 season.
In 2006-2007, the MSP of medium staple cotton stood at Rs 1,770 per quintal and that of long staple at Rs 1,990 per quintal.
Between 2008-2009 and 2010-2011, the government did not raise the MSP of both the varieties and stood at Rs 2,500 per quintal for medium staple and Rs 3,000 per quintal for all the three seasons.
