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    The Government Of India Has Formulated A Series Of Policies To Support The Textile Industry.

    2016/10/26 15:08:00 97

    IndiaCottonPrice

    In 2015/16, the direct subsidy for cotton in India is estimated at $50 million, or 0.40 cents / pound, far below the US $631 million (4 cents) in 2014/15.

    According to the analysis of the international cotton advisory board (ICAC), the government of India provides the lowest supporting price (MSP) for cotton production.

    In 2014/15 and 2015/16, India Cotton Corp bought the domestic cotton at that price because the domestic price was lower than MSP.

    In 2014/15, the MSP price of J-34 seed cotton in India is 3950 rupees / weight. According to the annual average exchange rate, the price of the lint cotton is about 85 cents / pound.

    In 2014/15, cotton prices in India were lower than MSP in most of the time. Therefore, the India Cotton Corp acquired 1 million 600 thousand tons of cotton directly, accounting for 1/4 of the total cotton output.

    Acquisition cost

    About 2 billion 900 million dollars.

    The annual average price of the domestic representative varieties in India is 66 cents.

    Based on the purchase price and the stock reserve value calculated at market prices, the government of India has spent about $631 million on the MSP policy, which is equivalent to 4 cents / pound.

    In 2015/16, India's MSP rose to 4000 rupees / weight. The annual average exchange rate is about 80 cents per pound.

    In the first half of the year, cotton prices in India were less than MSP in short time, about 64 cents, so the India Cotton Corp acquired only 144 thousand tons of cotton and the acquisition cost was about 250 million dollars.

    Under acquisition

    Price

    The total cost of the India trip MSP policy is estimated to be about $51 million, based on the estimated value of reserve stock at market prices.

      

    India cotton growers

    To enjoy debt relief and fertilizer subsidies, the government also provides support for cotton farmers in the form of crop insurance subsidies, though it is hard to understand the support level in this respect.

    At the same time, the government of India has supported cotton production through several projects, such as the construction of high quality cotton seed production and marketing infrastructure, support for upgrading of cotton ginning plants and improvement of cotton marketing, which are difficult to estimate, and many projects are not just cotton.

    In addition, the government of India has formulated a series of policies to support the textile industry, including direct support and preferential loans.


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