The agriculture ministry is considering increase in Cotton MSP by Rs160 per quintal for the 2017-18 crop year, based on the recommendation of the Commission for Agricultural Costs and Prices (CACP).
It is also planning to promote Bt Cotton variety developed by the government research body ICAR and expects increased area coverage and better output on hopes of good southwest monsoon that has already hit Kerala in advance.
For the ongoing 2016-17 crop year, MSP of medium staple Cotton has been fixed at Rs3,860 per quintal and long staple Cotton at Rs4,160.
The ministry has moved a Cabinet note for inter-ministerial comments on fixing MSP at Rs4,020 per quintal for medium staple Cotton and Rs4,320 per quintal for long staple Cotton for the 2017-18 crop year.
With higher MSP and normal monsoon forecast, area under Cotton is expected to increase next year. In 2016-17, Cotton area had dropped to 102.78 lakh hectares, but output rose by 8.57% to 32.58 million bales (of 170 kg each) due to good yields.