The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved ₹1,718.56 crore as Minimum Support Price (MSP) funding to the Cotton Corporation of India (CCI) for the 2023–24 cotton season.
The move aims to provide direct price support to cotton farmers and protect them from market fluctuations.
MSP Operations to Protect Farmers
According to the government, MSP procurement is undertaken when market prices fall below the minimum support price.
The initiative helps:
- Prevent distress sales
- Ensure fair and remunerative prices
- Stabilise cotton markets
Cotton: A Key Crop Supporting Millions
Cotton is one of India’s most important cash crops and plays a vital role in the economy.
Key figures:
- Supports livelihoods of around 60 lakh farmers
- Provides employment to 400–500 lakh people in allied sectors like textiles and trade
During the 2023–24 season:
- Cultivation area: 114.47 lakh hectares
- Production: 325.22 lakh bales
- Share in global output: Around 25%
Role of Cotton Corporation of India
The Cotton Corporation of India (CCI) acts as the central nodal agency for MSP procurement.
Its responsibilities include:
- Procuring all Fair Average Quality (FAQ) cotton
- No quantitative limit on procurement when prices fall below MSP
- Ensuring farmers get assured returns
CCI has established a strong procurement network across:
- 11 major cotton-growing states
- 508+ procurement centres
- Spread across 152 districts
Technology Boosts Transparency and Outreach
To improve efficiency and transparency, CCI has introduced digital initiatives such as:
- Bale Identification and Traceability System (BITS)
- “Cott-Ally” mobile application
These tools help:
- Provide MSP-related information to farmers
- Improve traceability of cotton
- Strengthen farmer outreach
Strengthening Farmer Welfare and Market Stability
The MSP funding is expected to:
- Support cotton-growing communities
- Ensure price stability
- Strengthen India’s textile and agriculture sectors
