Ministry of Textiles29-April, 2015 13:19 IST
MSP operations for cotton for the cotton year 2014-15

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Shri Narendra Modi, today took notice on the present cotton scenario in the country and gave its ex-post facto approval for engaging the Maharashtra State Co-operative Cotton Growers Marketing Federation Ltd. (MSCCGMFL) to undertake Minimum Support Price (MSP) operations as a Sub-agent of the Cotton Corporation of India (CCI) during the cotton season 2014-15.

The CCEA further approved additional fiscal allocation under Non-Plan Grant to meet anticipated losses in disposal of cotton for reimbursing the losses to CCI and MSCCGMFL on sale of cotton procured under the MSP operations during the cotton season 2014-15.

This decision will help in price support operations of 110 lakh bales (100 lakh bales by CCI and 10 lakh bales by MSCCGMFL) during the current cotton season 2014-15 to help stabilize cotton prices and alleviate farmer distress. This operation is primarily aimed at safeguarding the interest of the farmers and avoiding any distress sale. MSP for cotton was fixed at Rs. 3750/- for medium staple and Rs. 4050/- for long staple for the year 2014-15.

MSCCGMFL will procure cotton from farmers in the State of Maharashtra, in addition to CCI, on the same lines as CCI is doing. In the past MSCCGMFL has procured cotton under MSP as the agent of National Agricultural Federation (NAFED) in the State of Maharashtra on the basis of agreement between NAFED and MSCCGMFL.

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AKT/NT
(Release ID :119913)