New Delhi, March 18 (IANS) In a key step towards farmer welfare, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday 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.

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

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 per cent of global cotton output.

The government fixes the MSP for seed cotton (kapas) based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).

According to the CCEA, the MSP operations are undertaken to safeguard the interests of cotton farmers, particularly during periods when market prices fall below the MSP.

“These interventions play a crucial role in stabilising cotton prices, preventing distress sales, and ensuring remunerative returns to farmers. By enhancing inclusivity in agricultural markets, MSP operations contribute significantly to the economic security of cotton-growing communities,” according to an official statement.

The statement further said that 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 CCI is designated as the central nodal agency for undertaking MSP operations in cotton.

It procures all Fair Average Quality (FAQ) cotton from farmers without any quantitative ceiling, whenever market prices fall below MSP levels, thereby providing an assured safety net to farmers. As part of its preparedness, CCI has established a robust procurement network across all 11 major cotton-growing states, with over 508 procurement centres operational in 152 districts, ensuring seamless and accessible procurement for farmers.

Further, the Corporation has undertaken several technology-driven and farmer-centric initiatives to enhance the efficiency and transparency of MSP operations.

--IANS

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