Spending for reimbursing cotton MSP ops losses approved

23 Mar '20

1 min read

Pic: Shutterstock

India’s Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, recently gave 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 as a sub-agent of the Cotton Corporation of India Ltd (CCI) during the cotton years 2017-18 and 2018-19.

The CCEA also approved to incur an expenditure of ₹312.93 crore (₹311.33 crore for CCI and ₹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, according to an official release.

CCEA further approved to incur an additional expenditure of ₹748.08 crore (₹687.46 crore for CCI and ₹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 2014-15 and 2015-16.

The approval will help in price support operations of cotton which helps in stabilising cotton prices and is primarily aimed to safeguard the interests of the farmers and controlling any distress sale, the press release added.

Fibre2Fashion News Desk (DS)

More Textiles News - India...