The Centre on Saturday approved an additional expenditure of Rs 748.08 crore for Cotton Corporation of India and Maharashtra State Co-operative Cotton Growers Marketing Federation towards reimbursement of losses on sale of cotton procured under MSP operations during cotton years 2014-15 and 2015-16.
It also approved an expenditure of Rs 312.93 crore for reimbursing the losses to CCI and MSCCGMFL on sale of cotton procured under minimum support price (MSP) operations during cotton years 2017-18 and 2018-19. The cotton year is from October to September.
The decisions were taken by the Cabinet Committee on Economic Affairs (CCEA), which also accorded ex-post facto approval for engaging Maharashtra State Co-operative Cotton Growers Marketing Federation Ltd (MSCCGMFL) to undertake MSP operations in the state of Maharashtra as sub-agent of Cotton Corporation of India (CCI) Limited during the cotton years 2017-18 and 2018-19.
“The approval will help in price support operations of cotton which helps in stabilizing cotton prices and is primarily aimed to safeguard the interests of the farmers and controlling any distress sale,” an official statement said.