The Cabinet Committee on Economic Affairs (CCEA) has approved reimbursement amounting Rs 719.41 crore to Cotton Corporation of India (CCI) for losses incurred while procuring the fibre at minimum support price (MSP) operations carried out during the cotton season 2012-13.
Under the price support system for the cotton season 2012-13, the Government fixed the MSP for long staple and medium staple varieties of raw cotton at Rs 3,900 per quintal and Rs 3,600 per quintal, respectively which is a hike of 29% and 18%, respectively, over the previous year.
In October 2012, the cotton prices in Andhra Pradesh had touched MSP prices and procurement under MSP operations commenced in the districts of Warangal, Guntur and Adilabad. Under price stabilization operations, CCI had procured 22.65 lakh bales of seed kapas from October 2012 to February 2013 at a total cost of Rs 5,807.95 crore. The prices in Andhra Pradesh have been successfully stabilized by CCI and it has also avoided farmers’ distress with timely payments. Cotton prices then crossed MSP prices in March 2013 in Andhra Pradesh.
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