India Approves ₹1,718.56 Crore MSP Support for Cotton Farmers via CCI
20 March 2026, New Delhi: In a major boost to cotton farmers, the Government of India has approved Minimum Support Price (MSP) funding of ₹1,718.56 crore for the 2023–24 cotton season. The decision, cleared by the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi, aims to strengthen price support mechanisms and safeguard farmer incomes.
The funding will be channelled through the Cotton Corporation of India (CCI), the central nodal agency responsible for undertaking MSP procurement operations. The move reinforces India’s broader push towards self-reliance in quality cotton production while ensuring income stability for millions of farmers.
MSP operations play a critical role in protecting farmers from price volatility, particularly during periods when market rates fall below the government-declared MSP. By procuring seed cotton (kapas) at assured prices, these interventions help prevent distress sales and ensure remunerative returns, thereby strengthening the resilience of cotton-growing communities.
Cotton remains a cornerstone of India’s agricultural economy, supporting the livelihoods of nearly 60 million farmers and an additional 40–50 million people engaged across the value chain, including processing, trade, and textiles. During the 2023–24 season, cotton cultivation covered an estimated 11.447 million hectares, with production reaching 32.522 million bales—representing roughly a quarter of global cotton output.
The MSP for cotton is determined annually based on recommendations from the Commission for Agricultural Costs and Prices (CACP), ensuring a balance between farmer welfare and market dynamics.
CCI continues to operate an extensive procurement infrastructure across all 11 major cotton-growing states. With over 508 procurement centres spread across 152 districts, the agency ensures wide accessibility and timely procurement for farmers nationwide.
In recent years, CCI has also integrated technology into its operations to enhance transparency and efficiency. Initiatives such as the Bale Identification and Traceability System (BITS) and the “Cott-Ally” mobile application have improved traceability, information dissemination, and farmer engagement, contributing to a more robust and responsive procurement ecosystem.
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