MUMBAI, Sept 4 (Reuters) - India has raised the minimum
support price for cotton by 33-40 percent in the up-coming cotton
year begining Oct 1, a senior official in ministry of textiles
told Reuters.
"The notification regarding the hike in MSP was made on Sept
1. The raise became necessary due to increased input cost and an
overall rise in cotton prices," J.N. Singh, joint secretary in
the ministry of textiles, said on Thursday.
The MSP of the medium staple cotton, which includes the
popular Shankar variety, has been raised by 40 percent to 2,500
rupees per 100 kg. The MSP last year was 1,750-1,800 rupees.
The MSP for long staple fibre was raised to 3,000 rupees per
100 kg from 2,250 rupees in 2007/08 season.
India is set to produce a record 31.5 million bales of cotton
in the year ending Sept 2008. Despite a rise in output the prices
rose sharply on higher exports and lower supplies in the world
market.
(Reporting by Abhishek Shanker; Editing by Harish Nambiar)
(([email protected]; tel: 91 22 6636 9273;
Reuters Messaging: [email protected]))
Keywords: INDIA COTTON MSP/