CCEA approves ₹1,718.56 crore MSP funding to Cotton Corporation of India for cotton season 2023-24
The Cabinet Committee on Economic Affairs on 18 March 2026 approved MSP funding of ₹1,718.56 crore to the Cotton Corporation of India (CCI) for the 2023-24 cotton season as direct price support to cotton farmers.
Summary
The Cotton Corporation of India (CCI) will receive Minimum Support Price funding of ₹1,718.56 crore for the 2023-24 cotton season, approved by the Cabinet Committee on Economic Affairs on 18 March 2026. CCI is the central nodal agency for MSP operations in cotton and buys all Fair Average Quality cotton without any quantity ceiling whenever market prices fall below MSP, through 508 centres in 152 districts of 11 major cotton states. The MSP for seed cotton (kapas) is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP). In 2023-24 cotton was grown on 114.47 lakh hectares, with output of 325.22 lakh bales, nearly 25% of world production.
Key facts
- Approved
- CCEA, 18 March 2026
- Amount
- ₹1,718.56 crore to CCI
- Season
- Cotton season 2023-24
- CCI network
- 508 centres, 152 districts, 11 states
- MSP basis
- CACP recommendations; FAQ cotton bought without ceiling
- 2023-24 crop
- 114.47 lakh ha; 325.22 lakh bales (~25% of world output)
Practice MCQs 2 questions
In March 2026 the CCEA approved MSP funding of ₹1,718.56 crore for the 2023-24 cotton season to:
Show answer
Correct answer: A — Cotton Corporation of India
The MSP funding of ₹1,718.56 crore was approved for the Cotton Corporation of India (CCI), the central nodal agency for cotton MSP operations.
Consider the following about MSP operations in cotton: 1. CCI procures Fair Average Quality cotton subject to a quantity ceiling per farmer. 2. The MSP for seed cotton (kapas) is fixed on the recommendations of the CACP. Which of the above is/are correct?
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Correct answer: B — 2 only
Statement 1 is wrong: CCI procures all FAQ cotton without any quantitative ceiling when prices fall below MSP. Statement 2 is correct.