New Delhi: The Cabinet approved MSP funding cotton support of Rs.1,718.56 crore to the Cotton Corporation of India for the 2023-24 season to benefit farmers.
Chaired by Prime Minister Narendra Modi, the Cabinet Committee on Economic Affairs cleared the proposal to provide direct price support. The move aims to protect farmers when market prices fall below the minimum support price.
Officials said MSP funding cotton operations help stabilise prices and prevent distress sales. As a result, farmers receive assured returns and improved income security.
Cotton is a key cash crop that supports around 60 lakh farmers and provides livelihoods to 400–500 lakh people in allied sectors. Therefore, MSP interventions play a critical role in sustaining rural economies.
During the 2023-24 season, cotton cultivation covered 114.47 lakh hectares, with production estimated at 325.22 lakh bales. This accounts for nearly 25% of global output.
MSP funding cotton strengthens procurement network
Meanwhile, the government designated the Cotton Corporation of India as the nodal agency for procurement. It purchases Fair Average Quality cotton without any quantity limit when prices fall below MSP.
To support operations, CCI has set up 508 procurement centres across 152 districts in 11 major cotton-growing states. In addition, this network ensures easier access for farmers to sell their produce.
The corporation has also introduced technology-driven initiatives to improve efficiency. These include the Bale Identification and Traceability System and the “Cott-Ally” mobile application.
Moreover, awareness campaigns are being conducted to inform farmers about MSP operations. As a result, participation and transparency in procurement have improved.
The government said MSP funding cotton measures will encourage farmers to continue cultivation. It added that the initiative supports the goal of achieving self-reliance in quality cotton production.
