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Govt Procures 100 Lakh Cotton Bales Under MSP in FY 2024-25

Written by: Nikitha DeviUpdated on: Apr 9, 2025, 11:59 AM IST
Govt procured 100 lakh cotton bales under MSP in 2024-25, benefiting 21 lakh farmers with ₹37,450 crore; Telangana led with 40 lakh bales.
Govt Procures 100 Lakh Cotton Bales Under MSP in FY 2024-25
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In the ongoing cotton season of 2024-25, the Government of India, through its nodal agency, the Cotton Corporation of India Ltd (CCI) under the Ministry of Textiles, has made substantial progress in safeguarding farmers’ interests.  

As of March 31, 2025, CCI successfully procured 525 lakh quintals of seed cotton, equivalent to 100 lakh bales, under the Minimum Support Price (MSP) operations. 

Share in Total Cotton Arrivals and Production 

This procurement accounts for ~38% of the total cotton arrivals of 263 lakh bales, and 34% of the estimated total cotton production of 294.25 lakh bales for the season. This demonstrates the significant role of MSP operations in stabilizing the cotton market and ensuring farmer welfare. 

State-wise Procurement Highlights 

Among the cotton-producing states, Telangana led with a procurement of 40 lakh bales, followed by Maharashtra (30 lakh bales) and Gujarat (14 lakh bales). Other key contributors include: 

  • Karnataka: 5 lakh bales 
  • Madhya Pradesh: 4 lakh bales 
  • Andhra Pradesh: 4 lakh bales 
  • Odisha: 2 lakh bales 
  • Haryana, Rajasthan, and Punjab: 1.15 lakh bales collectively 

In total, an impressive ₹37,450 crore has been transferred to nearly 21 lakh cotton farmers, ensuring financial support and market stability. 

Read about: Coal Ministry Signs CMDPAs for 2 Mines, Eyes ₹106 Cr Annual Revenue.

Technology-Enabled Procurement 

To streamline the procurement process, CCI set up 508 procurement centers across the country. Embracing digital innovation, the government introduced several farmer-friendly features: 

  • On-spot Aadhaar authentication 
  • SMS notifications for real-time payment updates 
  • 100% direct bank payments via the National Automated Clearing House (NACH) 
  • Cott-Ally mobile app, supporting nine regional languages, provides farmers with MSP rates, payment tracking, and procurement center locations 
  • Blockchain technology and QR-coded bales for end-to-end traceability and transparency 

Conclusion 

The Government of India remains committed to protecting cotton farmers through a transparent and efficient MSP framework. With digital innovations and timely procurement, the CCI continues to play a vital role in empowering rural India and boosting agricultural resilience. 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

 

Published on: Apr 9, 2025, 9:19 AM IST

Nikitha Devi

Nikitha is a content creator with 6+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.

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