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CCEA approves Rs 1,061.01 crore additional expenditure to reimburse losses on cotton sale under MSP

23 Mar 2020 Evaluate

The Cabinet Committee on Economic Affairs (CCEA) has given green signal to an additional expenditure of Rs 1,061.01 crore for Cotton Corporation of India (CII) and Maharashtra State Co-operative Cotton Growers Marketing Federation (MSCCGMFL) towards reimbursement of losses on sale of cotton procured under Minimum Support Prices (MSP) operations during four years.

Of the total, the center approved Rs 748.08 crore for operations during cotton years 2014-15 and 2015-16 and Rs 312.93 crore for operations during cotton years 2017-18 and 2018-19. The cotton year runs from October to September.

CCEA has also accorded ex-post facto approval for engaging MSCCGMFL to undertake MSP operations in the state of Maharashtra as sub-agent of CCI 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.

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