The Cotton Corporation of India has received Cabinet clearance to receive Rs. 17,408.85 crore

10 November 2021, Mumbai:

The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has approved the Cotton Corporation of India (CCI) receiving committed price assistance of Rs. 17,408.85 crore for the cotton seasons 2014-15 to 2020-21. (up to 30 September 2021).

The government said in a statement that it is necessary to execute price support operations in cotton years 2014-15 to 2020-21 in order to protect the interests of cotton producers as cotton prices approached MSP levels.

Its adoption improves cotton producers' participation in the country's economic activities. Price support activities aid in the stabilisation of cotton prices and the alleviation of farmer distress.

According to reports, roughly Rs. 8,000 crore will be granted through extra provision for the current fiscal year, with the remainder being paid through a budgetary provision in the next fiscal.

Cabinet approves spending for reimbursing losses under MSP operations for cotton from 2014-15 to 2020-21 during the cotton season (October to September).

Cotton season 2020-21 had 133 lakh hectares under cultivation, with 360 lakh bales projected to be produced, accounting for about 25% of total global cotton production. The government sets the MSP for seed cotton based on CACP recommendations (kapas).

As and when cotton prices fall below the MSP level, the government designates CCI as the Central Nodal Agency, and CCI is empowered to implement MSP in cotton by acquiring all FAQ grade cotton from farmers without any quantitative ceiling. Cotton producers are protected against distress sales by MSP operations in the event of a price drop.

By building 474 procurement centers in 143 districts, CCI keeps its infrastructure ready in all 11 key cotton-growing states.

According to the statement, during the worldwide pandemic in the previous two cotton seasons (2019-20 and 2020-21), CCI acquired over 1/3 of the country's cotton crop, or approximately 200 lakh bales, and distributed more than Rs. 55,000 crore directly to nearly 40 lakh farmers' bank accounts.

CCI has already made the necessary provisions in all 11 main cotton-growing states, including the deployment of people at more than 450 procurement centers, to meet any possibility of MSP operations for the current cotton season, 2021-022.

For the Jute Year 2021-22, the government has also issued reservation guidelines for the required use of jute in the packaging (1 July 2021 to 30 June 2022).

Foodgrains must be wrapped in jute bags 100 percent of the time and sugar must be put in jute bags 20 percent of the time, according to the required packaging standards set for Jute Year 2021-22.

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.  

TOP 5:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

2. Consumers will determine growth of sustainable fashion e-comm in India

3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

5. Nike strengthens retail presences with new store at DLF Mall of India,Noida

Return to homepage