The centre is planning to introduce Direct Benefit Transfer Scheme (DBTS) for the cotton farmers in the face of falling global cotton consumption and the demand for higher Minimum Support Price (MSP) for cotton emanating from some states.
Inaugurating the 74th Plenary of the International Cotton Advisory Committee in Mumbai, textiles minister Santosh Kumar Gangwar said the centre has kept the cotton growers interest in mind and increased the MSP for long staple cotton to Rs 4,100 for the 2015-16 marketing season, the ministry in a statement said.
A pilot project under the Direct Payment Deficiency System (DPDS) for paying MSP guarantee for the cotton farmers has been initiated at Hinganghattaluka of Maharashtra. Under this system, the farmers will directly get the amount which is the difference between the MSP and the market price, if the market price falls below the MSP. If the pilot is successful, the DPDS would be rolled out in all cotton growing regions. Textiles secretary, S K Panda said the new move would benefit the farmers substantially.
The cotton procurement through the traditional route of Cotton Corporation of India (CCI) or state federations has been subdued this season and is expected to be lower than last year due to firm prices, which are ruling above MSP. In the 2014-15 marketing season that ended in October 2015, CCI had procured a record 8.6 million bales of cotton across the country.
