New Delhi, 18 March (H.S.):

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved ₹1,718.56 crore in Minimum Support Price (MSP) funding for the Cotton Corporation of India (CCI) for the 2023–24 cotton season, in a move aimed at providing direct price support to cotton farmers and strengthening staple‑crop revenues.

The decision is expected to stabilise cotton prices, prevent distress sales and contribute to India’s goal of self‑reliance in high‑quality cotton.

Under the MSP regime, the Government of India guarantees a floor price for seed cotton (kapas) based on recommendations of the Commission for Agricultural Costs and Prices (CACP). When market prices fall below MSP, CCI steps in to procure Fair Average Quality (FAQ) cotton directly from farmers without any quantitative ceiling, ensuring that growers receive a remunerative return.

The newly approved funding will reimburse CCI for the financial burden incurred during such procurement operations.

Cotton remains one of India’s most vital cash crops, sustaining the livelihoods of about 60 lakh farmers and supporting roughly 400–500 lakh people engaged in spinning, ginning, trading and textiles.

During the 2023–24 season, the area under cotton cultivation was estimated at 114.47 lakh hectares, with production pegged at about 325.22 lakh bales—around 25% of global output. MSP‑linked interventions are designed to underpin this production base and keep farmers in the cotton‑growing ecosystem.

The Cotton Corporation of India, the nodal agency for MSP operations in cotton, has built a robust physical infrastructure across all 11 major cotton‑growing states, operating over 508 procurement centres in 152 districts. This network ensures that farmers have nearby, organised channels to sell their produce even when informal‑market prices sag.

In addition to physical centres, CCI has rolled out several technology‑driven measures to make MSP procurement more transparent and accessible. These include widely disseminating MSP‑related information, implementing a Bale Identification and Traceability System (BITS) and launching the “Cott‑Ally” mobile app, which delivers real‑time updates on rates, nearby centres and documentation requirements in multiple regional languages.

These tools are intended to reduce information asymmetry and encourage wider farmer participation in MSP operations.

Beyond direct farmer support, MSP‑linked procurement helps the domestic textile and spinning industry by ensuring a steady, government‑backed supply of raw cotton. Procured stocks are typically released through a transparent online e‑auction system, fostering competitive price discovery while guarding against sharp shortages or hoarding. Analysts note that such support is especially important during periods of global price volatility and fluctuating demand in textile markets.

The latest MSP‑funding approval follows a long‑standing pattern of CCEA‑driven support packages to CCI, which have cumulatively channelled thousands of crores of rupees over several years to back cotton procurement. The current move underscores the government’s focus on income security for farmers, price stability in agriculture and the long‑term competitiveness of India’s cotton and textile value chain.

---------------

Hindusthan Samachar / Jun Sarkar