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Cotton prices expected to stabilise due to 9% hike in MSP
Cotton prices expected to stabilise due to 9% hike in MSP
The Indian government has increased its minimum support price (MSP) for cotton by about 9% year-on-year for the 2023-24 marketing season. Cotton prices have already fallen over 25% in the last eight months, leading to a shortage of cotton in the market. The increase in MSP for the next season is expected to stabilise the prices and may lead to a 5% increase in cotton planting in India. Cotton processors are hopeful of getting enough raw material. However, some cautioned that a hike in MSP, without increasing cotton productivity, can endanger India's competitiveness in the global markets.
The Indian government has increased its minimum support price (MSP) for cotton by about 9% year-on-year for the 2023-24 marketing season. Cotton prices have already fallen over 25% in the last eight months, leading to a shortage of cotton in the market. The increase in MSP for the next season is expected to stabilise the prices and may lead to a 5% increase in cotton planting in India. Cotton processors are hopeful of getting enough raw material. However, some cautioned that a hike in MSP, without increasing cotton productivity, can endanger India's competitiveness in the global markets.
The Indian government has increased its minimum support price (MSP) for cotton by about 9% year-on-year for the 2023-24 marketing season. Cotton prices have already fallen over 25% in the last eight months, leading to a shortage of cotton in the market. The increase in MSP for the next season is expected to stabilise the prices and may lead to a 5% increase in cotton planting in India. Cotton processors are hopeful of getting enough raw material. However, some cautioned that a hike in MSP, without increasing cotton productivity, can endanger India's competitiveness in the global markets. 
