The Gujarat government on Wednesday announced ₹110 per 20 kg bonus for the cotton growers in the State. As per the announcement, cotton farmers will get additional ₹110 per 20 kg on the Minimum Support Price (MSP) of ₹810/20 kg when sold to government procurement agency, Cotton Corporation of India at its depots.

Farmers in Gujarat faced heavy losses as market price of cotton fell sharply due to China cutting down on its purchases from India.

After frequent representations by farmer bodies like Bhartiya Kisan Sangh (BKS) and farmer leaders, the state government formed a committee of ministers under the leadership of Chief Minister Anandiben Patel. “It is expected that cotton growing area in the State is likely to be around 2.76 million hectares this year with an estimated cotton output of around 8.5-9 million bales (of 170 kg). In the view of this and to provide good market price for cotton growers, the State government has decided to give ₹110 bonus to the farmers from the State Budget,” said the spokesperson minister Nitin Patel.

Farmers selling cotton at the CCI depots will be entitled to get this bonus, which puts the price at ₹920 per 20 kg or ₹4,600 a quintal of raw cotton.

The benefit will be applicable from December 18, 2015 for all procurement made under CCI.

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