The government on Thursday decided to fix the minimum support price of cotton on the basis of quality to provide higher prices for good variety crops to farmers.
In its meeting, the Cabinet Committee on Economic Affairs on Thursday allowed the Commission for Agriculture Costs and Prices to recommend two grades of cotton depending on their quality.
The Committee also asked the Ministry of Textiles to set up infrastructure facilities at purchase centers to scientifically asses the quality of cotton. At present, all cotton varieties are given the same minimum support price. The decision would give farmers a better price in the market as they would be able to know the support price for good quality cotton, an industry official said.
The government on Thursday also approved a Rs 230 crore marketing and export promotion scheme to support 27,00 000 lakh handloom weavers. The scheme will be implemented over a period of five years.
"The Cabinet Committee on Economic Affairs also gave its approval for implementation of a centrally sponsored scheme on marketing and export promotion during the 11th Plan period (2007-12) with an outlay of Rs 230 crore," Finance Minister P Chidambaram told reporters after the CCEA meeting. He said, out of approved funds, Rs 205 crore have been earmarked for handloom marketing and the balance would be for export promotion.
The marketing strategy would include organising exhibition, events and craft melas, setting up urban haats, marketing complexes and publicity awareness. There would also be a handloom marketing complex at Janpath in New Delhi.