Further, to protect the interest of the cotton growers, Government of India announces Minimum Support Price (MSP) of cotton every year and whenever the market prices of Kapas touch the Minimum Support Price level, the Cotton Corporation of India in the Ministry of Textiles undertakes Support Price Operation and purchases Kapas without any quantitative limit.
In addition, Government of India has also authorized the National Agricultural Cooperation Marketing Federation of India Ltd. (NAFED) in 2004-05 to procure cotton at Minimum Support Price.