Govt. of India Ensures Fair Cotton Procurement with MSP Support for Farmers

The procurement scheme plays an essential role in stabilizing cotton prices and protecting farmers from distress sales when market prices dip below the MSP.

In a remarkable move to support the cotton farming community, the Government of India, through its nodal agency, the Cotton Corporation of India Ltd. (CCI) under the Ministry of Textiles, has successfully procured a significant quantity of cotton for the 2024-25 season. As of March 31, 2025, the CCI has successfully procured 525 lakh quintals of seed cotton, equivalent to 100 lakh bales, under the Minimum Support Price (MSP) operations. This procurement represents 38% of the total cotton arrivals of 263 lakh bales and 34% of the estimated total cotton production of 294.25 lakh bales in the country.

The procurement scheme plays an essential role in stabilizing cotton prices and protecting farmers from distress sales when market prices dip below the MSP. The government has made tremendous efforts to ensure that the MSP mechanism continues to offer cotton farmers a reliable safety net, enabling them to receive remunerative prices for their hard work and agricultural produce.

Regional Breakdown of Procurement and Key Figures

The states with the highest procurement volumes are Telangana, Maharashtra, and Gujarat. Telangana leads the way with a procurement of 40 lakh bales, followed by Maharashtra, which has procured 30 lakh bales. Gujarat follows closely with 14 lakh bales procured. Other states like Karnataka, Madhya Pradesh, Andhra Pradesh, and Odisha also recorded significant figures, contributing to the overall procurement process.

• Telangana: 40 lakh bales

• Maharashtra: 30 lakh bales

• Gujarat: 14 lakh bales

• Karnataka: 5 lakh bales

• Madhya Pradesh: 4 lakh bales

• Andhra Pradesh: 4 lakh bales

• Odisha: 2 lakh bales

• Haryana, Rajasthan, Punjab: 1.15 lakh bales combined

To ensure that cotton farmers across all major cotton-producing states benefit from this program, a total of Rs. 37,450 crore has been disbursed to approximately 21 lakh cotton farmers. The digital integration of the program has further streamlined the entire process, making it more efficient and transparent. The CCI operates 508 procurement centers across the country, making it accessible for farmers from remote areas to participate in the scheme.

Digital Initiatives and Transparency in Procurement

The government has focused on leveraging technology to improve the efficiency and transparency of the procurement process. Among the notable innovations is the use of Aadhaar authentication for on-the-spot verification of farmers. SMS notifications are sent to farmers regarding payment status, and 100% of the payments are made directly through the National Automated Clearing House (NACH) system, ensuring seamless and prompt transactions.

To make the procurement process more accessible to farmers, the Cott-Ally mobile app was introduced. This app, available in nine regional languages, helps farmers access real-time information on MSP rates, nearby procurement centers, and payment tracking. This initiative has empowered farmers with the necessary tools to track the status of their cotton and payments without having to visit physical centers frequently.

Moreover, the government has ensured full traceability of cotton bales produced under CCI procurement. Each bale is equipped with a QR code, using Blockchain technology to enhance transparency and accountability in the system. This ensures that farmers and other stakeholders can trace the origin of the cotton, contributing to greater confidence in the integrity of the procurement process.

Long-term Commitment to Cotton Farmers

The Government of India continues to remain committed to safeguarding the interests of cotton farmers through fair, transparent, and efficient procurement practices. This comprehensive approach not only ensures farmers receive fair compensation but also strengthens the agricultural supply chain by eliminating the negative effects of fluctuating market prices.

The MSP procurement program is a clear indication of the government's efforts to protect cotton farmers, ensure they are not exploited by market forces, and guarantee they are paid fairly for their crops. Through this initiative, the government aims to create a more sustainable and resilient cotton farming ecosystem, addressing key challenges such as price volatility and market uncertainties.

With these continued efforts, the government aims to provide a reliable safety net for cotton farmers and further establish India's agricultural sector as a global leader in cotton production and export.