Centre approves Rs 1,718.56 cr to CCI for cotton procurement operations

New Delhi: The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Wednesday approved Rs 1,718.56 crore funding to Cotton Corporation of India (CCI) for procurement operations.

"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.

During the 2023–24 cotton season, the area under cultivation was estimated at 114.47 lakh hectares, with production pegged at 325.22 lakh bales, accounting for nearly 25% of global cotton output. The Government of India fixes the MSP for seed cotton (kapas) based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) , the statement said.