If more commodities which have seen a sharp rise in MSP are to be procured, such as pulses, oilseed and cereals, there could be a storage problem. Also, if state-owned Cotton Corporation of India joins in, this problem will aggravate.
Foodgrains production in 2020-21 is projected to be a record 144.52 million tonnes, which is 0.80 per cent more than the production in 2019-20.
Prices of cotton have already gone up by 10-20 per cent per candy (356 kg) this year to Rs 16,000-Rs 23,000 depending on the variety. There has been a softening in the past few weeks but the prices are expected to firm up again as demand grows.
Soybean is trading at a 25 per cent premium to the MSP, after initially slipping below the government's threshold procurement price of Rs 2,850 a quintal.
'The spirit of cooperation between the Centre and states has been diluted in many ways.' 'The level of consultation which used to be there earlier has reduced significantly.'
The project is scheduled to be completed by March 2019, while work is expected to start by this financial year.
Indian cotton and paddy could see their competitiveness in international markets take a hit
Rising skills gap, falling exports, low productivity, rising debt and low foreign investment is jeopardising the target set for the textile and apparels sector
'This announcement is big foolishness.' 'The government has no idea of economics. They are just announcing what comes to their mind.' 'Let them implement what they have announced and just see what will happen in two years.'
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