Cabinet approves expenditure for reimbursing the losses under MSP operations for cotton during the cotton years (October to September) 2014-15 to 2018-19
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has given its ex-post facto approval for engaging Maharashtra State Cooperative Cotton Growers Marketing Federation Ltd. (MSCCGMFL) to undertake Minimum Support Price (MSP)operations in the state of Maharashtra as Sub-agent of Cotton Corporation of India (CCI) Limited 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 Limited 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 Limited 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 stabilizing cotton prices and is primarily aimed to safeguard the interests of the farmers and controlling any distress sale.