Chandigarh, March 19: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved Rs 1,718.56 crore in funding on Wednesday to support Minimum Support Price (MSP) operations for the Cotton Corporation of India. The financial allocation is intended for the 2023–24 cotton season and serves as a direct price support mechanism for growers across the nation.
Government officials stated that the intervention is designed to safeguard the interests of approximately 60 lakh farmers who depend on the crop. Cotton is recognized as a primary cash crop in India, further supporting up to 500 lakh individuals involved in processing and textile trade. During the 2023-24 season, the country accounted for nearly 25 percent of global output, with production estimated at 325.22 lakh bales.
The Center establishes the MSP based on advice from the Commission for Agricultural Costs and Prices to prevent distress sales when market rates fall below the set floor price. “These operations contribute significantly to the economic security of cotton-growing communities,” the government affirmed in an official statement.
Agriculture Minister Shivraj Chouhan maintained that a “farmer-first” strategy remains the priority to enhance both productivity and fiber quality. For the 2025-26 season, the government has already raised the MSP to Rs 7,710 per quintal for medium-staple and Rs 8,110 for long-staple cotton. Chouhan asserted that the long-term goal is to make India self-reliant in high-quality cotton production by 2047.
