Ministry of Textiles
azadi ka amrit mahotsav

MSP funding of Rs. 17,408 crore to CCI for cotton seasons 2014-15 to 2020-21 for direct support to farmers

MSP operations motivate cotton farmers in the country to keep their sustained interests in cotton cultivation and make India Aatmanirbhar for quality cotton

CCI has infrastructure in all 11 major cotton-growing States through 474 procurement centres in 143 districts

In the last 2 cotton seasons, CCI procured around 1/3rd of the cotton production in the country and disbursed more than Rs. 55,000 crores directly in the bank account of around 40 lakh cotton farmers

Posted On: 10 NOV 2021 5:13PM by PIB Delhi

Taking another step towards realizing our collective vision of an Aatmanirbhar Bharat, Government, under the leadership of Hon’ble Prime Minister Shri Narendra Modi, has approved the Minimum Support Price (MSP) funding of Rs. 17,408 crore to CCI for cotton seasons 2014-15 to 2020-21 for direct support to farmers.

Cotton is one of the most important cash crops and plays a major role in sustaining the livelihood of around 58 lakh cotton farmers. Further, approximately 400 - 500 lakh people are engaged in related activities such as cotton processing and trade. During cotton season 2020-21, the area under cotton cultivation was 133 lakh hectares with an estimated production of 360 lakh bales, which account for around 25% of total global cotton production.

Government based on the recommendations of Commission for Agricultural Costs and Prices (CACP), fixes MSP for seed cotton (kapas). Government appoints CCI as Central Nodal agency and CCI is mandated to undertake MSP in cotton by procuring all FAQ grade cotton from farmers without any quantitative celling, as and when cotton prices fall below MSP level.  MSP operations protect cotton farmers from distress sale during any adverse price situation. MSP operations, being a sovereign function in nature, motivate cotton farmers in the country to keep their sustained interests in cotton cultivation to make India Aatmanirbhar for quality cotton, which is a raw material for the spinning industry.

During the global pandemic in the last two cotton seasons (2019-20 & 2020-21), CCI procured around 1/3rd of the cotton production in the country, i.e. about 200 lakh bales and disbursed more than Rs.55,000/- crores directly in the bank account of around 40 lakh cotton farmers.

For the current cotton season (i.e. October,2021- September, 2022), CCI has already made adequate arrangements in all 11 major cotton-growing states by opening 474 procurement centres in 143 districts, to meet any eventuality of MSP operations. The Government extends full price support to CCI for undertaking MSP operations in cotton.

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