Industry And Cluster | News & Insights

DE-Linting and Cotton Seed Oil Extraction

Published: July 30, 2019

With a view to provide remunerative price of cotton to farmers, Government of India has taken the following initiatives:-


(i) Ministry of Agriculture, Government of India fixes the Minimum Support Price (MSP) of two varieties of seed cotton (kapas) every year before commencement of the Cotton Season (October to September).  In order to ensure better productivity and production and to protect the interest of farmers, Government of India has increased the MSP for 2018-19 by 28% and 26% for Medium Staple Cotton and Long Staple Cotton respectively.


(ii) Nominated the Cotton Corporation of India (CCI) as nodal agency to undertake MSP operation in all cotton growing States, in the event when prices of seed cotton (kapas) touches the MSP level, to purchase entire quantity of kapas (FAQ grade) offered by the cotton farmers in various APMC market yards at MSP rates.


(iii) Around 350 procurement centres have been opened in all the cotton growing States. CCI Procurement Officials remain present at procurement centres right from the beginning of the cotton season to ensure minimum support prices to the cotton farmers wherever the prevailing kapas prices fall below MSP.


(iv) Disseminating the necessary information regarding MSP rates to cotton farmers by displaying banners in APMCs, advertisements in newspapers, distribution of pamphlets to individual farmers etc.


(v) Initiated electronic generation of purchase bill/ takpatti against the cotton procured from farmers in APMCs to avoid delay in releasing the payments to the cotton farmers.


(vi) Implemented 100% payment of kapas purchased under MSP to the cotton farmers directly in their bank account through online.


(vii) Developed a farmer friendly mobile app, Cott-Ally to have direct interaction and outreach with the cotton farmers and to keep the cotton farmers informed about various information related to Minimum Support Price operations, tracking of payments status etc.

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