In a significant move for farmer welfare, the Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, sanctioned Rs 1,718.56 crore as minimum support price (MSP) funding for the Cotton Corporation of India (CCI) for the upcoming cotton season 2023–24.
For the 2023–24 cotton season, an estimated 114.47 lakh hectares were cultivated, with a projected production of 325.22 lakh bales, representing about 25% of the global cotton output.
The government sets the MSP for seed cotton (kapas) based on recommendations from the Commission for Agricultural Costs and Prices (CACP).
MSP operations are crucial to protect the interests of cotton farmers, especially during times when market prices dip below the MSP, stated the CCEA.
The official statement highlighted that cotton is a vital cash crop in India, supporting the livelihoods of around 60 lakh farmers and benefiting 400–500 lakh individuals engaged in related activities like processing, trade, and textiles.
The CCI serves as the central agency for MSP operations in cotton, procuring all Fair Average Quality (FAQ) cotton from farmers without any limit when market prices fall below MSP levels, ensuring a safety net for farmers.
To enhance efficiency and transparency in MSP operations, the CCI has implemented technology-driven and farmer-centric initiatives, along with establishing a robust procurement network across major cotton-growing states.
