The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, 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. This funding aims to provide direct price support to cotton farmers nationwide.
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 Government has designated the Cotton Corporation of India 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, thereby providing an assured safety net to farmers.
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.
