The Hindu : National : Nod for marketing and export promotion scheme

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Friday, Nov 02, 2007
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Nod for marketing and export promotion scheme

Special Correspondent

MSP for cotton on the basis of quality

NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved a centrally sponsored marketing and export promotion scheme worth Rs. 230 crore. It also decided to fix the minimum support price (MSP) for cotton on the basis of quality.

Finance Minister P. Chidambaram told presspersons after the CCEA meeting that approval for the scheme was given in the 11th Plan period. It would have two components — marketing promotion and handlooms export promotion.

“Of the total outlay of Rs.230 crore, Rs.205 crore has been earmarked for marketing promotion and the rest of the amount will be spent for handlooms export promotion. The marketing promotion component will comprise organising exhibitions, events and craft ‘melas,’ setting up of urban ‘haats’ and marketing complexes, and publicity and awareness campaigns,” he said.

“Handloom” mark

Besides developing a “Handlooms Marketing Complex” at Janpath here and creating a “Handloom” mark, the government would organise international fairs and exhibitions, set up design studios and hold promotion events and activities.

The Minister said the marketing promotion scheme would benefit over 27-lakh handloom weavers by increasing their sale of products in the domestic market, while the handlooms export promotion would assist weavers in product diversification, development of exportable products and give them exposure to international markets.

On MSP for cotton, Mr. Chidambaram said the CCEA had allowed the Commission for Agricultural Costs and Prices (CACP) to recommend MSP for two classes of cotton with the specified characteristics of “staple length” and “micronaire value.”

As per the CCEA approval, the CACP would decide MSP for 24.5-25.5 mm staple length of cotton having a micronaire value of 4.3-5.1.

It would also fix a higher price for better micronaire value of 3.8-4.2 and lower the price for cotton having less than 3.8 and over 5.1 micronaire value. The CACP would also fix MSP for the 29.5-30.5 mm staple length according to their micronaire value.

At present, all cotton varieties are given the same MSP.

The CCEA has asked the Textile Ministry to set up infrastructure facilities at purchase centre to scientifically assess the micronaire values so that the farmers benefited. It has also been asked to specify the cotton varieties falling in these two classes on a year-to-year basis.

The CCEA decided that for other classes of cotton, the Textile Commissioner would fix the MSP, based on the MSP fixed by the CACP.

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