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Informist, Wednesday, Mar. 18, 2026

 

--Cabinet OKs INR 117.12 bln for MSP for cotton season 2023-24

 

MUMBAI – The Cabinet Committee on Economic Affairs on Wednesday approved a total of INR 117.12 billion as minimum support price to cotton farmers for the 2023–24 (Oct-Sept) season. Out of the total amount, the Cabinet has approved reimbursement of INR 17.19 billion to the Cotton Corp. of India for losses incurred while carrying out the MSP operations. The funding aims to provide direct price support to cotton farmers across the country, an official release said.

 

MSP operations are undertaken to safeguard the interests of cotton farmers, particularly when market prices fall below the support price. These interventions play a crucial role in stabilising cotton prices, preventing distress sales, and ensuring remunerative returns to farmers, the release said. The government fixes the MSP for seed cotton based on the recommendations of the Commission for Agricultural Costs and Prices.

 

During the 2023–24 cotton season, the area under cultivation was estimated at 11.45 million hectares, with production pegged at 32.52 million bales, accounting for nearly 25% of global cotton output. Cotton prices remained under pressure during the 2023-24 season, prompting the government to step in with large-scale procurement to prevent distress sales and ensure remunerative returns to farmers. Cotton remains one of India's most vital cash crops, sustaining the livelihoods of approximately 6.0 million farmers and supporting 40-50 million people engaged in allied activities, including processing, trade, and textiles, according to the release. 

 

As part of its preparedness, the Cotton Corp. of India 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, the release said. "These include disseminating MSP-related information, implementing the Bale Identification and Traceability System, and launching the "Cott-Ally" mobile app, which enables better outreach and service delivery to farmers," it said.  End

 

Reported by Taniva Singha Roy

Edited by Saji George Titus

 

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