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Cotton Corporation of India (CCI) procurement and MSP

The Cotton Corporation of India (CCI) is a public sector undertaking under the Ministry of Textiles that serves as the central nodal agency for Minimum Support Price operations on seed cotton (kapas). Whenever market prices in cotton-growing states fall below the MSP announced by the Centre, CCI enters the market and purchases kapas from farmers at the notified MSP.

Overview

CCI maintains procurement centres at APMC mandis and ginning factories in cotton-growing states, opens season-specific operations following the Cabinet Committee on Economic Affairs notification of MSP, and ginned the procured kapas through empanelled ginning units before disposing of lint and seed.

Eligibility

Any farmer offering kapas of fair average quality conforming to the staple length and moisture norms specified for the season can sell to CCI at the MSP. Sale is routed through registered procurement centres with documentation linked to the farmer's land records and bank account.

Benefit and structure

Two staple-length grades are notified each year. For the 2024-25 cotton season the MSP was fixed at approximately Rs 7,121 per quintal for medium-staple cotton and Rs 7,521 per quintal for long-staple cotton. During that season CCI procured about 100 lakh bales (around 525 lakh quintals) of kapas from roughly 21 lakh farmers, with Telangana the largest contributing state.

Implementation

Payment is made through Direct Benefit Transfer into farmer bank accounts after weighment, grading and bale ginning. Operations are coordinated with state marketing boards and APMCs (see Apmc Mandi) and are linked to the broader MSP regime (see Msp Minimum Support Price).

See also Msp Minimum Support Price and Apmc Mandi.

References

  1. Cotton Corporation of India. cotcorp.org.in.
  2. Government procures 100 lakh bales of cotton under MSP. Press Information Bureau.