The MSP procurement operations are designed to offer cotton farmers remunerative prices and protect them from distress sales during periods of low market prices.
In the 2024-25 cotton season, up to March 31, 2025, the Government of India, through the Cotton Corporation of India (CCI) under the Ministry of Textiles, has procured 525 lakh quintals of seed cotton, equivalent to 100 lakh bales, under the Minimum Support Price (MSP) operations. This procurement represents 38 per cent of the total cotton arrivals, which stood at 263 lakh bales, and 34 per cent of the estimated total production of 294.25 lakh bales across the country.
Telangana emerged as the leading state in cotton procurement with 40 lakh bales, followed by Maharashtra at 30 lakh bales and Gujarat at 14 lakh bales. Other states contributing significantly include Karnataka (5 lakh bales), Madhya Pradesh (4 lakh bales), Andhra Pradesh (4 lakh bales), and Odisha (2 lakh bales). In Haryana, Rajasthan, and Punjab, combined procurement reached 1.15 lakh bales. Altogether, approximately Rs 374.50 billion has been disbursed to nearly 21 lakh cotton farmers across all cotton-growing states.
The MSP procurement operations are designed to offer cotton farmers remunerative prices and protect them from distress sales during periods of low market prices. To streamline the procurement process, CCI has set up 508 procurement centres across the country. Several digital initiatives have been introduced, such as Aadhaar-based on-the-spot authentication, SMS payment alerts, and 100 per cent direct payments through the National Automated Clearing House (NACH). The Cott-Ally mobile application, available in nine regional languages, provides farmers with real-time information on MSP rates, procurement centres, and payment status. Additionally, all bales procured by CCI are traceable through QR codes using Blockchain technology, ensuring transparency and accountability.
The Government of India continues to prioritize a fair and efficient system that safeguards the interests of cotton farmers nationwide.