**Executive Summary**
The Cabinet Committee on Economic Affairs has approved Rs. 1,718.56 crore in Minimum Support Price (MSP) funding to the Cotton Corporation of India (CCI) for the 2023–24 cotton season. This initiative provides direct price support to farmers to stabilize market prices, prevent distress sales, and ensure remunerative returns. The funding supports a sector that sustains 60 lakh farmers and accounts for approximately 25% of global cotton output.
**Key Points / Main Content**
* **Financial and Strategic Objectives**
* Allocation of Rs. 1,718.56 crore for MSP operations during the 2023–24 season.
* Aims to protect farmers from market price fluctuations and ensure economic security for cotton-growing communities.
* Advances the "Aatmanirbhar Bharat" vision by motivating farmers to sustain quality cotton cultivation.
* **Operational Mandate and Nodal Agency**
* The Cotton Corporation of India (CCI) is the designated central nodal agency for cotton MSP operations.
* CCI is mandated to procure all Fair Average Quality (FAQ) cotton from farmers without any quantitative ceiling whenever market prices fall below MSP.
* MSP for seed cotton (kapas) is fixed by the Government based on recommendations from the Commission for Agricultural Costs and Prices (CACP).
* **Infrastructure and Outreach**
* Establishment of a procurement network across 11 major cotton-growing states.
* Operation of 508 procurement centres spanning 152 cotton-growing districts to ensure accessible procurement.
* **Technological Initiatives**
* Implementation of the Bale Identification and Traceability System (BITS) to enhance operational efficiency.
* Launch of the “Cott-Ally” mobile app to improve farmer outreach and service delivery.
* Use of technology-driven platforms to disseminate transparent MSP-related information.
**Impact Analysis**
**Cotton Farmers**
**Impact**
Farmers receive a guaranteed price safety net, protecting them from financial loss when market prices drop. This supports the livelihoods of 60 lakh farmers and helps maintain the 114.47 lakh hectares under cultivation.
**Action Required**
Farmers must ensure their produce meets Fair Average Quality (FAQ) standards for procurement and are encouraged to use the “Cott-Ally” app for information and services.
**Cotton Corporation of India (CCI)**
**Impact**
As the central nodal agency, CCI is responsible for executing large-scale procurement and managing the allocated Rs. 1,718.56 crore. It must maintain extensive infrastructure across 11 states.
**Action Required**
CCI must operate 508 procurement centres, manage the BITS traceability system, and ensure seamless procurement without quantitative limits when market conditions trigger MSP operations.
**Allied Sector Stakeholders (Processing, Trade, and Textiles)**
**Impact**
Stabilized cotton prices and guaranteed supply support 400–500 lakh people engaged in processing, trade, and the textile industry.
**Action Required**
Stakeholders in these sectors must align their operations with the stabilized market prices and quality standards facilitated by the MSP operations.
Key Entities Referenced
Cotton Corporation of India (CCI): The central nodal agency designated to undertake Minimum Support Price (MSP) operations and procure cotton from farmers to provide a price safety net.
Minimum Support Price (MSP): A price support mechanism funded with Rs. 1,718.56 crore to safeguard cotton farmers' interests and ensure remunerative returns when market prices fall.
Cabinet Committee on Economic Affairs (CCEA): The high-level government committee that approved the financial funding for cotton procurement operations for the 2023–24 season.
Commission for Agricultural Costs and Prices (CACP): The statutory body responsible for recommending the Minimum Support Price levels for seed cotton (kapas) to the government.
Bale Identification and Traceability System (BITS): A technology-driven initiative implemented by CCI to enhance the efficiency, transparency, and traceability of cotton procurement operations.
Ministry of Textiles
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 4:15PM 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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