The decision was taken by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi.
Also Read: Cabinet approves Rs 11,712 crore MSP support for cotton in 2023-24; 7.25 lakh farmers benefit
“In a significant step towards strengthening farmer welfare and advancing the vision of Aatmanirbhar Bharat, the CCEA 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,” an official statement said.
The funding will help provide direct price support to cotton farmers across the country.
The Centre fixes the MSP for seed cotton (kapas) based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). It has designated the CCI 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.Also Read: Cabinet nod to Rs 54,926 crore plans: BHAVYA parks, support for cotton farmers, UP highway, hydro push
“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,” the statement said.