Rs 1,718 Crore MSP Boost for Cotton Farmers: Govt Clears Procurement Funding
Cotton plays a crucial role in India's rural economy, providing livelihood support to nearly 60 lakh farmers.
Rs 1,718 Crore MSP Boost for Cotton Farmers: Govt Clears Procurement Funding
India’s cotton sector is set to receive a financial boost after the Centre approved Rs 1,718.56 crore to support procurement under the minimum support price (MSP) mechanism for the 2023–24 season.
The funding will be channelled through the Cotton Corporation of India, which is responsible for purchasing cotton from farmers whenever market prices fall below the MSP. The agency steps in to ensure farmers are not forced to sell their produce at lower rates, procuring fair average quality cotton without any quantity cap.
The decision was cleared by the Cabinet Committee on Economic Affairs, chaired by Narendra Modi, as part of broader efforts to strengthen income support for farmers and stabilise the agricultural economy.
Cotton plays a crucial role in India’s rural economy, providing livelihood support to nearly 60 lakh farmers. Beyond cultivation, the crop also sustains employment for millions in processing, trade and textile-related industries.
The government fixes MSP for cotton based on recommendations from the Commission for Agricultural Costs and Prices, with the procurement mechanism acting as a safety net during price downturns.