Ahmedabad: The subsidy burden of the
government is likely to shoot up this fiscal due to hike in
Minimum Support Price as acreage under the crop is expected to
cross 100 lakh hectare mark in the country, a top official
said here today.
"The acreage under cotton has jumped by 6-8 per cent this
fiscal, and is projected to cross 100 lakh hectare-mark for
the first time," ,Textile Joint Secretary J N Singh told
reporters on the sidelines of a conference here.
"Last year, the Textile Ministry had to pay Rs 3,500
crore as subsidy, after the announcement of hike in cotton
MSP," Singh said.
As per government estimates, production of cotton is
likely to touch 315 lakh bales this fiscal (one bale is equal
to 170 Kg) from 290 lakh bales last year.
"On account of higher production estimates this year, the
subsidy is also likely to shoot up," official sources said.
The Centre had raised MSP of standard cotton (long
staple) to Rs 3,000 per quintal for 2008-09 from Rs 2,030 in
the previous year. The MSP of medium staple cotton had been
raised to Rs 2,500 from Rs 1,800 per quintal.
Bureau Report
First Published: Saturday, October 03, 2009, 16:29