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Government of India Procures 100 Lakh Bales of Cotton Under MSP Operations through its Nodal Agency 38% of total cotton arrivals procured under MSP operations up to March 31, 2025Rs 37,450 crore paid to cotton farmersTelangana leads with 40 lakh bales, followed by Maharashtra WITH 30 lakh bales and Gujarat WITH 14.02 lakh bales508 procurement centers operationalDirect Aadhaar-linked payments and digital tracking through the Cott-Ally mobile app

Published on 08-Apr-2025 07:54 PM

Government of India Procures 100 Lakh Bales of Cotton Under MSP Operations through its Nodal Agency

The Government of India has successfully procured 100 lakh bales of cotton under the Minimum Support Price (MSP) operations, marking a significant step forward in ensuring fair and equitable markets for cotton farmers. This initiative underscores the government’s commitment to safeguarding the interests of cotton farmers by providing reliable prices and transparent mechanisms for efficient procurement.

Market Scope

  • Total Cotton Arrivals: The government procured 263 lakh bales across India, accounting for 38% of total cotton arrivals, bringing the total production in the country to 294.25 lakh bales.
  • MSP Mechanism: Under the MSP mechanism, the government ensured that cotton farmers were protected from distress sales when market prices fell below the set minimum price.
  • State-Wise Distribution:
    • Telangana led with 40 lakh bales, followed by Maharashtra (30 lakh) and Gujarat (14.02 lakh).
    • Other states like Karnataka (5 lakh), Madhya Pradesh (4 lakh), Andhra Pradesh (4 lakh), and Odisha (2 lakh) also contributed significantly to the procurement.

Government Initiatives

The government’s efforts were supported by 508 procurement centers across India, ensuring efficient procuring processes. The Cott-Ally mobile app is a key initiative, enabling real-time information on MSP rates and facilitating seamless payment tracking for farmers. Additionally, Aadhaar-linked payments and SMS notifications for timely payments were implemented to streamline the supply chain.

Conclusion

The Government of India’s procurement strategy under MSP operations has not only provided cotton farmers with fair prices but also enhanced efficiency in the supply chain. This initiative is crucial as it ensures that cotton remains a vital component of national industrial production while safeguarding farmers’ interests. As the government continues to refine its procurement processes, it is expected to further strengthen the farmer-centric market system.


This blog provides an in-depth overview of the Government of India’s cotton procurement under MSP operations, highlighting key details such as state distribution, government initiatives, and future plans to ensure sustainable cotton production and fair markets.


source: Government of India Procures 100 Lakh Bales of Cotton Under ...