In a move aimed at reinforcing farmer welfare and strengthening domestic agricultural resilience, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved Minimum Support Price (MSP) funding of Rs. 1,718.56 crore (US $184 million) for the Cotton Corporation of India (CCI) for the 2023–24 cotton season.
The funding is intended to provide direct price support to cotton farmers nationwide, particularly during periods when open market prices fall below the MSP threshold.
MSP operations are designed to protect farmers from price volatility and prevent distress sales. These interventions help stabilise cotton prices while ensuring remunerative returns to cultivators, thereby contributing to broader agricultural income security.
Cotton continues to be one of India’s most critical cash crops, supporting the livelihoods of approximately 6 million farmers and an additional 40–50 million individuals engaged in associated sectors such as processing, trade, and textiles.
For the 2023–24 season, the total area under cotton cultivation was estimated at 11.447 million hectares, with production projected at 32.522 million bales—representing nearly a quarter of global cotton output. The MSP for seed cotton (kapas) is determined by the government based on recommendations from the Commission for Agricultural Costs and Prices.
The government has designated the Cotton Corporation of India as the central nodal agency responsible for MSP procurement operations. The agency is mandated to procure all Fair Average Quality (FAQ) cotton offered by farmers without any quantitative restrictions whenever market prices dip below MSP levels, effectively providing a guaranteed safety net.
To facilitate procurement, CCI has established an extensive operational network spanning all 11 major cotton-producing states. This includes more than 508 procurement centres across 152 districts, ensuring accessibility and efficiency for farmers.
In addition, the agency has implemented several technology-driven initiatives to improve transparency and operational effectiveness. These include the Bale Identification and Traceability System (BITS) and the “Cott-Ally” mobile application, both aimed at enhancing farmer outreach and streamlining procurement processes.
The value of cotton exports reached US $11.49 billion in FY ’25, and US $3.70 billion in FY ’26 (April-July 2025).
India remains a global leader in cotton textiles. According to FY 2023–24 estimates, India exports cotton textiles and garments worth approximately US $11–13 billion annually, with cotton garments constituting a significant share of this figure. Domestically, India is also one of the largest consumers of cotton-based apparel, with the domestic textile and apparel market estimated at US $110–120 billion, of which cotton garments account for roughly 60–65%, translating to an estimated US $65–75 billion in cotton-dominant garment consumption.
This dual strength in exports and domestic consumption underscores cotton’s central role in India’s agricultural and industrial economy.
