Also Read: BHAVYA Scheme gets Cabinet nod: Govt approves plug-and-play industrial parks plan with Rs 33,660 cr outlay
The support was extended through procurement operations undertaken by the Cotton Corporation of India (CCI), which purchased nearly 33 lakh bales of cotton during the season when market rates dropped below MSP levels.
As part of the decision, the Cabinet also cleared Rs 1,718 crore as reimbursement to CCI for losses incurred while carrying out MSP operations.
Cotton prices remained under pressure during the 2023-24 marketing season (October–September), prompting the government to step in with large-scale procurement to prevent distress sales and ensure remunerative returns to farmers.
India produced about 325 lakh bales of cotton during the season, with MSP operations playing a key role in stabilising prices and supporting farmer incomes.
Also Read: Cabinet nod to Rs 54,926 crore plans: BHAVYA parks, UP highway, hydro push
CCI, the government’s nodal agency for cotton procurement, operates across all major cotton-growing states and procures fair average quality cotton without any quantitative ceiling whenever market prices fall below MSP.