Cotton MSP For Marketing Season 2020-21 Increased


The Cabinet Committee on Economic Affairs (CCEA) has approved the increase in the Minimum Support Prices (MSPs) for all mandated kharif crops for marketing season 2020-21.

Government has increased MSP for cotton (medium staple) to Rs 5151per quintal, an increase of Rs 260 from the previous MSP. And MSP for cotton (long staple) is Rs 5825 per quintal, an increase of Rs 275 over the previous MSP.

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The increase in MSP for kharif crops for marketing season 2020-21 is in line with the Union Budget 2018-19 announcement of fixing the MSPs at a level of at least 1.5 times of the all-India weighted average Cost of Production (CoP), aiming at reasonably fair remuneration for the fanners. The expected returns to cotton farmers over their cost of production is estimated to be at least 50%.

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Government is taking holistic approach towards supporting the farmers and facilitate farming related activities in the lockdown situation. Efforts are being made to facilitate marketing of agricultural produce by the farmers. Advisories have been issued by the Union Government to state governments / UTs to facilitate direct marketing, enabling direct purchase from the fanners / FPOs / cooperatives etc. by bulk buyers /big retailers / processors by limiting regulation under State APMC Act.

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