Cabinet Approves Rs 1,718 Crore MSP Funding To Safeguard Cotton Farmers' Income

(MENAFN- KNN India) New Delhi, Mar 19 (KNN) The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved Minimum Support Price (MSP) funding of Rs 1,718.56 crore to the Cotton Corporation of India (CCI) for the 2023–24 cotton season to provide direct price support to farmers.

The funding is aimed at strengthening MSP operations, which are designed to protect farmers when market prices fall below the prescribed support level.

These interventions help stabilise prices, prevent distress sales and ensure remunerative returns, thereby contributing to income security in cotton-growing regions.

Cotton continues to be a key cash crop, supporting the livelihoods of around 60 lakh farmers and providing employment to several million people in allied sectors such as processing, trade and textiles.

During the 2023–24 season, the crop was cultivated over an estimated 114.47 lakh hectares, with production pegged at 325.22 lakh bales, accounting for a significant share of global output.

The government designates the CCI as the central nodal agency for MSP procurement, with a mandate to procure all Fair Average Quality (FAQ) cotton without any quantitative ceiling whenever market prices fall below MSP.

This ensures an assured procurement mechanism for farmers across regions.

To support operations, CCI has established a procurement network across 11 major cotton-growing states, with more than 508 centres spread across 152 districts, enabling wider access and timely procurement.

The agency has also introduced technology-driven initiatives to improve transparency and efficiency, including dissemination of MSP-related information, the Bale Identification and Traceability System (BITS), and the“Cott-Ally” mobile application to enhance farmer outreach and service delivery.

(KNN Bureau)

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