Cabinet approves Rs 17,409 crore to CCI for cotton procurement

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The government approved an Rs 17, 408.85 crore committed price support to the Cotton Corporation of India for seven cotton seasons from 2014-15 to 2020-21 on Wednesday. The decision was taken at the Cabinet Committe on Economic Affairs (CCEA)  by Prime Minister Narendra Modi.

It has approved incurring expenditure for reimbursing losses under MSP operations for cotton in the season from 2014-15 to 2020-21 (October to September).

Cotton cultivation at 133 lakh hectares

In a move to safeguard the interests of the cotton farmers, the government said the CCI had procured large quantities in cotton during 2014-15 and 2020-21 as cotton touched the MSP prices.

The cotton procured at MSP helped in stabilising the cotton prices and alleviate farmer’s distress. I&B Minister Anurag Thakur said, the CCI and authorised agencies procured 123 lakh cotton bales in 2019-20 and 100 lakh bales in 2020-21. The annual production is estimated at 350-360 lakh bales.

During the cotton season 2020-21, the area under cotton cultivation was 133 lakh hectares with estimated production of 360 lakh bales, which accounted for around 25% of total global cotton production. The MSP is fixed by the government for seed cotton (kapas) on the basis of the recommendations of CACP.

The cabinet has approved reservation norms for Jute Packaging Materials for Jute Year 2021-22, in another decision.

According to the reservation norms, 100% foodgrains and 20% of sugar will be packed in jute bags during Jute Year 2021-22 under JPM Act, 1987. The decision is likely to bring relief to 3,70,000 workers employed in jute mills and ancillary units. The decision is expected to bring relief to 3,70,000 workers employed in jute mills and ancillary units.