In a major boost to cotton farmers, the Government of India, through its nodal agency Cotton Corporation of India Ltd. (CCI), has procured 100 lakh bales of cotton under the Minimum Support Price (MSP) operations for the ongoing 2024-25 cotton season, up to March 31. This constitutes 38 per cent of the total cotton arrivals (263 lakh bales) and 34 per cent of the estimated national production (294.25 lakh bales), reflecting a significant intervention by the Centre to ensure remunerative prices to farmers.
According to the Ministry of Textiles, the procured quantity equals 525 lakh quintals of seed cotton, benefitting nearly 21 lakh farmers across the country. A total of Rs 37,450 crore has been disbursed directly to farmers’ bank accounts under the Direct Benefit Transfer (DBT) system. The payments are processed through the National Automated Clearing House (NACH), with on-spot Aadhaar authentication and SMS notifications to ensure transparency and efficiency.
The highest procurement has been recorded in Telangana, where 40 lakh bales have been procured so far, followed by Maharashtra with 30 lakh bales and Gujarat with 14.02 lakh bales. Other states with substantial procurement include:
• Karnataka: 5 lakh bales
• Madhya Pradesh: 4 lakh bales
• Andhra Pradesh: 4 lakh bales
• Odisha: 2 lakh bales
• Punjab, Haryana, and Rajasthan: 1.15 lakh bales combined
These figures highlight the geographical spread and scale of the MSP operations in safeguarding the interests of cotton growers.
508 procurement centres, digital reforms
To ensure easy and timely procurement, the Cotton Corporation of India has set up 508 procurement centres across all cotton-producing states. Farmers can now access real-time updates through the Cott-Ally mobile app, launched by CCI, which is available in nine regional languages.
The app provides farmers with:
• Daily MSP rates
• Location of procurement centres
• Real-time payment tracking
• Access to transaction history
All cotton bales produced through CCI procurement are now traceable via QR codes, with blockchain technology being deployed to ensure authenticity and accountability throughout the value chain.
MSP as a safety net
The MSP operations play a critical role in protecting farmers against price volatility. When market prices fall below the government-declared MSP, the CCI intervenes to procure cotton at the assured price, preventing distress sales and supporting farm incomes.
For the 2024-25 season, the MSP for medium staple cotton was fixed at Rs 6,620 per quintal, while that of long staple was Rs 7,020 per quintal — providing a significant margin above the average cost of production. The MSP mechanism ensures price stability and encourages sustainable cotton farming practices across India.
Government’s commitment
A statement by the Ministry emphasized that the Government of India remains steadfast in its commitment to safeguard the interests of cotton farmers through fair, transparent, and tech-enabled procurement processes. “Our goal is to create a farmer-friendly environment where producers are empowered to make informed decisions, receive timely payments, and trust the procurement system,” said a senior official from the Ministry of Textiles.
The CCI’s procurement mechanism under MSP has also strengthened India’s efforts in ensuring self-sufficiency in cotton and supporting the downstream textile industry, which is a major contributor to employment and exports.
Farmer feedback and future plans
Initial feedback from farmer organisations has been overwhelmingly positive, especially about the digital ease brought in by the Cott-Ally app and direct bank transfers. However, farmer leaders have urged the Centre to continue strengthening procurement infrastructure and consider increasing MSP margins to align with rising input costs.
The government is also planning integration of crop data with weather information and soil health parameters in future versions of the Cott-Ally app to help farmers plan their cotton sowing more scientifically.
