The Cabinet Committee on Economic Affairs (CCEA) on 29 April 2015 gave its ex-post facto approval for engaging the Maharashtra State Co-operative Cotton Growers Marketing Federation Ltd. (MSCCGMFL) to undertake Minimum Support Price (MSP) operations.
MSCCGMFL can perform MSP operations as a sub-agent of the Cotton Corporation of India (CCI) during the cotton season 2014-15. It will procure cotton from farmers in Maharashtra on the same lines as CCI is doing.
The CCEA also approved additional fiscal allocation under Non-Plan Grant to meet the anticipated losses in disposal of cotton. This will reimburse the losses of CCI and MSCCGMFL through the sale of cotton procured under the MSP operations during the cotton season 2014-15.
This decision will help in price support operations of 110 lakh bales (100 lakh bales by CCI and 10 lakh bales by MSCCGMFL) during the cotton season 2014-15 to help stabilize cotton prices and alleviate farmer distress.
This operation is primarily aimed at safeguarding the interest of the farmers and avoiding any distress sale. The MSP for cotton was fixed at 3750 rupees for medium staple and 4050 rupees for long staple for the year 2014-15.
Previously, MSCCGMFL had procured cotton under MSP as the agent of National Agricultural Federation (NAFED) in the State of Maharashtra on the basis of agreement between NAFED and MSCCGMFL.
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When: 29 April 2015
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