Madhya Pradesh slashes cotton market fee to boost local trade and jobs

The Madhya Pradesh state government has cut the cotton market fee in Khetia from 1% to 0.50%. Chief Minister Mohan Yadav approved the change during a recent Cabinet meeting. The move follows requests from local agricultural bodies and politicians. The Khetia Agricultural Produce Market Committee reported cotton arrivals of 4.5 lakh quintals this season. Private traders and the Cotton Corporation of India have been active buyers of the produce.

Local traders in Sanawad welcomed the fee reduction. They believe it will lower costs for ginning and pressing units. The policy is also expected to expand the local market and create more jobs.

MLA Sachin Birla stated that the reform would help revive the local ginning industry. He added that farmers could now secure better prices for their cotton. Bhagchand Jain, president of the Cotton and Ginning Association in Sanawad, predicted a rise in cotton processing. He also foresees higher GST and tax collections as a result. The fee reduction was pushed by the Khetia Cotton Association and regional MLA Shyam Barde. The government expects the change to boost market arrivals, ensure a steady raw material supply, and support employment. The policy aims to strengthen the entire cotton supply chain in the region.