**Executive Summary**
The Cabinet Committee on Economic Affairs (CCEA) has approved Rs.1,718.56 crore in funding for the Cotton Corporation of India (CCI) for the 2023–24 cotton season. This funding supports Minimum Support Price (MSP) operations to stabilize prices, prevent distress sales, and provide direct price support to cotton farmers. The initiative aims to secure the livelihoods of approximately 60 lakh farmers and 400–500 lakh people in allied sectors.
**Key Points / Main Content**
*Financial and Nodal Provisions*
* **Funding Approval:** A total of Rs.1,718.56 crore is allocated to CCI for MSP operations during the 2023–24 season.
* **Nodal Agency:** The Cotton Corporation of India (CCI) is designated as the central nodal agency for cotton procurement.
* **Price Determination:** MSP for seed cotton (kapas) is fixed based on recommendations from the Commission for Agricultural Costs and Prices (CACP).
*Procurement Mechanism*
* **Procurement Standard:** CCI procures all cotton meeting "Fair Average Quality" (FAQ) standards.
* **No Quantitative Limit:** Procurement is conducted without any quantitative ceiling whenever market prices fall below the MSP.
* **Infrastructure:** Operations are supported by 508 procurement centres across 152 districts in 11 major cotton-growing states.
*Sector Statistics and Significance*
* **Production Volume:** India accounts for nearly 25% of global cotton output, with 2023–24 production estimated at 325.22 lakh bales.
* **Cultivation Area:** Estimated at 114.47 lakh hectares for the 2023–24 season.
*Technological and Efficiency Measures*
* **Traceability:** Implementation of the Bale Identification and Traceability System (BITS) to enhance operational transparency.
* **Digital Outreach:** Launch of the “Cott-Ally” mobile app to improve service delivery and communication with farmers.
* **Information Dissemination:** CCI is tasked with actively spreading MSP-related information to the farming community.
**Impact Analysis**
**Cotton Farmers**
**Impact**
Farmers are provided with an assured safety net and remunerative returns, protecting them from price volatility and distress sales.
**Action Required**
Farmers should produce Fair Average Quality (FAQ) cotton and utilize the "Cott-Ally" mobile app to access MSP-related information and services.
**Cotton Corporation of India (CCI)**
**Impact**
CCI receives the necessary financial resources to maintain its vast procurement infrastructure and implement technology-driven efficiency initiatives.
**Action Required**
CCI must manage the 508 procurement centres, execute the Bale Identification and Traceability System (BITS), and facilitate the procurement of FAQ cotton without quantitative limits.
**Allied Sectors (Processing, Trade, and Textiles)**
**Impact**
Approximately 400–500 lakh people engaged in these sectors benefit from a stabilized cotton market and consistent raw material supply.
**Action Required**
Stakeholders in these sectors should engage with the transparent procurement and traceability systems (such as BITS) implemented by the CCI.
Key Entities Referenced
Cotton Corporation of India (CCI): The designated central nodal agency responsible for undertaking Minimum Support Price (MSP) operations and procurement of cotton from farmers.
Minimum Support Price (MSP): A government-mandated price support mechanism aimed at safeguarding cotton farmers from market price drops and ensuring remunerative returns.
Cabinet Committee on Economic Affairs (CCEA): The high-level government body that approved the allocation of Rs. 1,718.56 crore for cotton MSP operations during the 2023–24 season.
Commission for Agricultural Costs and Prices (CACP): The statutory body that provides recommendations used by the government to fix the MSP for seed cotton (kapas).
Aatmanirbhar Bharat: The national initiative and vision for a self-reliant India that the approved cotton funding seeks to advance.
Cabinet Committee on Economic Affairs (CCEA)
Cabinet approves MSP funding of Rs.1,718.56
crore to CCI for cotton seasons 2023-24 for
direct support to cotton farmers
MSP operations motivate cotton farmers across the country
to sustain their interest in cotton cultivation and help make
India Aatmanirbhar in quality cotton
CCI has infrastructure in all 11 major cotton-growing states
through 508 procurement centres in 152 cotton-growing
districts
Posted On: 18 MAR 2026 4:07PM by PIB Delhi
In a significant step towards strengthening farmer welfare and advancing the vision of Aatmanirbhar
Bharat, the Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri 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 across the country.
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.
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.
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.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, CCI has undertaken several technology-driven and farmer-centric initiatives to enhance the
efficiency and transparency of MSP operations. These include disseminating MSP-related information,
implementing the Bale Identification and Traceability System (BITS), and launching the “Cott-Ally”
mobile app, which enables better outreach and service delivery to farmers.
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