Indian cabinet approves over Rs 17,000 crore price support to Cotton Corporation of India

The Cabinet Committee on Economic Affairs (CCEA) has given approval for committed price support of Rs  17,408.85 crore to the Cotton Corporation of India (CCI) for the cotton seasons (October to September) from 2014-2015 to 2020-2021.

Since the cotton prices touched Minimum Support Price (MSP) levels, the CCI had procured cotton at MSP prices during these years.

In the last two cotton seasons (2019-2020 and 2020-2021), the CCI has procured around one-third of the cotton production in the country, approximately about 200 lakh bales, and disbursed more than Rs 55,000 crore directly in the bank accounts of around 40 lakh farmers, according to a press statement.

During cotton season 2020-2021 (October to September), the area under cotton cultivation was 133 lakh hectares with an estimated production of 360 lakh bales, which account for around 25 percent of total global cotton production.

Further, for the current cotton season (October 2021 to September 2022), the CCI has made adequate arrangements in all 11 major cotton-growing states to meet MSP operations if needed, added the press release added.

The CCEA also approved reservation norms for mandatory use of jute in packaging for the Jute Year 2021 – 2022 (July 1, 2021, to June 30, 2022). The mandatory packaging norms approved to provide for 100 percent reservation of the foodgrains and 20 percent of sugar to be compulsorily packed in jute bags.

The reservation norms will further protect the interest of domestic production of raw jute and jute packaging material in the country as packaging in jute packaging material consumed around 66.57 percent of the raw jute produced in the country (in 2020-2021).

By bringing into effect the provision of the Jute Packaging Material (JPM) Act, the government will provide relief to 3.7 lakh workers employed in jute mills and ancillary units as well as support the livelihood of around 40 lakh farm families, the press release said. The average Production of Jute sacking bags is about 30 lakh bales and the government purchases jute sacking bags worth approximately Rs8,000 crore every year for packing of foodgrains, ensuring a guaranteed market for the produce of jute farmers and workers, the press release added.

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