CCEA approves Rs 1,718.56 crore funding to CCI for cotton procurement operations

New Delhi: The government has approved Rs 1,718.56 crore funding to Cotton Corporation of India (CCI) for procurement operations.

The decision was taken by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi.

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"In a significant step towards strengthening farmer welfare and advancing the vision of Aatmanirbhar Bharat, the CCEA has approved Minimum Support Price (MSP) funding of Rs 1,718.56 crore to the Cotton Corporation of India (CCI) for the cotton season 2023-24," an official statement said.

The funding will help provide direct price support to cotton farmers across the country.

The Centre fixes the MSP for seed cotton (kapas) based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). It has designated the CCI as the central nodal agency for undertaking MSP operations in cotton.

CCI procures all Fair Average Quality (FAQ) cotton from farmers without any quantitative ceiling, whenever market prices fall below MSP levels.

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"Cotton remains one of India's most vital cash crops, sustaining the livelihoods of approximately 60 lakh farmers and supporting 400-500 lakh people engaged in allied activities, including processing, trade, and textiles," the statement said.