Policy

Reimbursing losses for cotton MSP operations gets Cabinet nod

The approval will help in price support operations of cotton which helps in stabilising cotton prices and is primarily aimed to safeguard the interests of the farmers and controlling any distress sale

Reimbursing losses for cotton MSP operations gets Cabinet nod

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, today, has given its ex-post facto approval for engaging Maharashtra State Cooperative Cotton Growers Marketing Federation (MSCCGMFL) to undertake Minimum Support Price (MSP) operations in the state of Maharashtra as sub-agent of Cotton Corporation of India (CCI) during the cotton years 2017-18 and 2018-19.

The CCEA also approved to incur an expenditure of Rs. 312.93 crore — Rs. 311.33 crore for CCI and Rs. 1.60 crore for MSCCGMFL — under Revenue Head for reimbursing the losses to CCI and MSCCGMFL on sale of cotton procured under MSP operations during the cotton years (October to September) 2017-18 and 2018-19.

The CCEA further approved to incur an additional expenditure of Rs. 748.08 crore — Rs. 687.46 crore for CCI and Rs. 60.62 crore for MSCCGMFL — under Revenue Head for reimbursing the losses to CCI and MSCCGMFL on sale of cotton procured under MSP operations during the cotton years (October to September) 2014-15 & 2015-16.

The approval will help in price support operations of cotton which helps in stabilising cotton prices and is primarily aimed to safeguard the interests of the farmers and controlling any distress sale.




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