Cabinet approves Rs 11,712 crore MSP support for cotton in 2023-24; 7.25 lakh farmers benefit
The Union Cabinet has approved significant funding for cotton farmers. Rs 1,718.56 crore will support the Cotton Corporation of India for the 2023-24 season. This ensures farmers receive minimum support prices. It prevents distress sales and guara...
By ET Online | Updated:
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The Cabinet on Wednesday approved Rs 11,712 crore as minimum support price (MSP) support for cotton in the 2023-24 season, benefiting around 7.25 lakh farmers, as the government stepped in to cushion growers from falling market prices.
The support was extended through procurement operations undertaken by the Cotton Corporation of India (CCI), which purchased nearly 33 lakh bales of cotton during the season when market rates dropped below MSP levels.
As part of the decision, the Cabinet also cleared Rs 1,718 crore as reimbursement to CCI for losses incurred while carrying out MSP operations.
Cotton prices remained under pressure during the 2023-24 marketing season (October–September), prompting the government to step in with large-scale procurement to prevent distress sales and ensure remunerative returns to farmers.
India produced about 325 lakh bales of cotton during the season, with MSP operations playing a key role in stabilising prices and supporting farmer incomes.
CCI, the government’s nodal agency for cotton procurement, operates across all major cotton-growing states and procures fair average quality cotton without any quantitative ceiling whenever market prices fall below MSP.
