The Cabinet Committee on Economic Affairs has approved minimum support price funding of Rs 1,718.56 crore for the Cotton Corporation of India for the 2023 to 24 cotton season, in a move aimed at providing direct price support to cotton growers across the country.
The decision, taken by the panel chaired by Prime Minister Narendra Modi, is intended to safeguard farmers against price fluctuations and ensure remunerative returns when market rates fall below the MSP.
Cotton remains one of India’s key cash crops, supporting nearly 60 lakh farmers and providing livelihood to around 4 to 5 crore people engaged in allied sectors such as processing, trade and textiles.
According to official data, the area under cotton cultivation during the 2023 to 24 season was estimated at 114.47 lakh hectares, with production pegged at 325.22 lakh bales. This accounts for nearly a quarter of global cotton output, underlining India’s significant position in the global market.
The Centre fixes the MSP for seed cotton on the recommendations of the Commission for Agricultural Costs and Prices. Procurement operations are carried out to protect farmers, especially during periods of declining market prices, and to prevent distress sale of produce.
The government said such interventions play a critical role in stabilising cotton prices and strengthening the economic security of cotton growing communities by improving market access and ensuring fair returns.
Agriculture Minister Shivraj Singh Chouhan has reiterated the government’s farmer focused approach, stressing the need to boost productivity, improve quality and ensure better price realisation for cotton farmers.
For the 2025 to 26 season, the MSP has been increased to Rs 7,710 per quintal for medium staple cotton and Rs 8,110 per quintal for long staple cotton. The Centre has also set a long term goal of making India self reliant in high quality cotton production by 2047 while ensuring stable income for farmers and quality raw material for the domestic textile industry.