Government Allocates ₹1,718.56 Crore for Cotton Procurement: A Boost for Farmers

Significant Funding for Cotton Procurement

New Delhi: The Indian government has sanctioned ₹1,718.56 crore to the Cotton Corporation of India (CCI) to facilitate procurement operations.

This decision was made by the Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi.

An official announcement highlighted that this funding is a crucial move towards enhancing farmer welfare and aligns with the Aatmanirbhar Bharat initiative, specifically for the cotton season of 2023-24.

The allocated funds will provide essential price support directly to cotton farmers nationwide.

The Minimum Support Price (MSP) for seed cotton (kapas) is determined based on the recommendations from the Commission for Agricultural Costs and Prices (CACP), with the CCI appointed as the primary agency for MSP operations in the cotton sector.

The CCI is responsible for purchasing all Fair Average Quality (FAQ) cotton from farmers without any limits whenever market prices dip below the MSP.

According to the statement, cotton is a crucial cash crop in India, supporting the livelihoods of around 6 million farmers and benefiting 40 to 50 million individuals involved in related sectors such as processing, trade, and textiles.