Chandigarh, March 19: A significant financial package of Rs 1,718.56 crore has been cleared by the Union Cabinet to reimburse the Cotton Corporation of India for its price support activities. The decision, finalized during a Wednesday meeting, ensures that cotton farmers receive remunerative returns even during periods of market volatility.
The government declared that the move is essential for maintaining stability in the agricultural market, covering an estimated cultivation area of 114.47 lakh hectares. Officials affirmed that the funding helps prevent farmers from being forced into selling their harvest at a loss. As a vital pillar of the economy, the cotton sector sustains a vast network of workers across the textile and processing industries.
Minister of Agriculture Shivraj Chouhan stated that the administration is focused on ensuring domestic farmers receive high returns while the industry gains access to quality raw materials. He declared that increasing the MSP for the upcoming 2025-26 season to over Rs 8,110 for long-staple varieties is a step toward this objective.
Provisions of the funding will assist in managing the 325.22 lakh bales produced during the recent season. The government maintained that the MSP operations are crucial for enhancing inclusivity within the agricultural market. Minister Chouhan affirmed his commitment to a self-reliant cotton sector, stating that a robust support system is the foundation for future growth in the global textile arena.
