In Maharashtra, many farmers are keeping their cotton output in reserve and are selling it to the Government’s minimum support price (MSP) facilities. In order to obtain an anticipated higher price, farmers are anticipating that a bonus payout will be announced once the new cabinet takes office.
Other farmers are also depending on more rational factors, like declining domestic production and increasing global prices. Cotton’s MSP is Rs. 7,521, although its private market prices range from at least Rs. 7,000 to Rs. 7,200 per quintal. MSP, a technique for price intervention, takes effect when crop rates fall. Because the Government buys at MSP, even private traders match the rates. Farmers hope to get at least Rs. 8,000 if the government announces a bonus payout during the winter session of the legislature.
The Cotton Corporation of India (CCI) has taken up the MSP activities. Over 7 lakh quintals, or 1.4 lakh bales, were bought in nearly two months. Maharashtra, on the other hand, is expected to produce around 84 lakh bales. This indicates an increase of over 4 lakh bales over the previous year.
