The government authorised Rs 17,408.85 crore in funding for the Cotton Corporation of India (CCI) on Wednesday, which would be used mostly to repay bank loans received by the state-owned corporation for cotton purchase during the previous seven marketing years.
During the cotton season (October-September) 2014-15 to 2020-21, the CCEA has authorised incurring expenditure for reimbursing losses under MSP operations for cotton.
According to an official announcement, the CCEA has approved a committed price assistance of Rs 17,408.85 crore to the CCI for the cotton seasons 2014-15 to 2020-21 (till September 30, 2021).
The government stated that the CCI acquired cotton in significant quantities from 2014-15 to 2020-21 in order to protect the interests of cotton farmers when cotton prices approached MSP rates.
Cotton buying at MSP helps to stabilise cotton prices and relieve farmer hardship.
I&B Minister Anurag Thakur told the reporters that the CCI and approved agencies procured 123 lakh cotton bales in 2019-20 and 100 lakh bales in 2020-21, according to the Cabinet directives. The yearly production is expected to be between 350 and 360 lakh bales.
During the 2020-21 cotton season, there were 133 lakh hectares under cotton cultivation, with an anticipated 360 lakh bales produced, accounting for around 25% of total global cotton production. The MSP for seed cotton (kapas) is set by the government based on CACP recommendations.
The Cabinet also adopted reservation standards for Jute Packaging Materials for the Jute Year 2021-22.
According to Thakur, 100% food grains and 20% sugar would be packaged in jute bags during Jute Year 2021-22 under the JPM Act, 1987, as per reservation guidelines.
