The Cabinet Committee on Economic Affairs (CCEA) approved ₹1,718.56 crore funding to the Cotton Corporation of India (CCI) for cotton procurement operations. This support helps maintain Minimum Support Price (MSP) for cotton farmers and ensures market stability. The move aims to protect farmers from price fluctuations and strengthen agricultural income security. It reflects the government’s continued focus on farmer welfare and price stabilization mechanisms in the agriculture sector.
The Cabinet Committee on Economic Affairs (CCEA) approved ₹1,718.56 crore funding for cotton procurement operations. This decision was taken in 2026 to support farmers. The funds are given to the Cotton Corporation of India (CCI), which works under the Ministry of Textiles.
CCI procures cotton when market prices fall below the Minimum Support Price (MSP). This ensures farmers get a fair price for their produce. It also stabilizes cotton prices in the market.
MSP is a government-fixed price. It protects farmers from losses due to price fluctuations. Cotton is one of the major MSP crops in India.
1.Cotton procurement in India is mainly handled by:
A) FCI
B) NABARD
C) CCI
D) SEBI
Answer: C
2.MSP is recommended by:
A) RBI
B) CACP
C) NITI Aayog
D) Finance Commission
Answer: B
3.CCI operates under which ministry?
A) Agriculture
B) Commerce
C) Textiles
D) Finance
Answer: C
4.MSP is mainly aimed to:
A) Increase exports
B) Protect farmers from low prices
C) Reduce imports
D) Increase taxes
Answer: B
5.Cotton is related to which sector?
A) Mining
B) Textile
C) IT
D) Banking
Answer: B
1. MSP is announced by which authority?
Answer: Government of India based on CACP recommendations
2. Which agency procures food grains under MSP?
Answer: Food Corporation of India (FCI)
Students often confuse CCI with FCI.
CCI handles cotton, while FCI handles food grains like wheat and rice.
Focus on MSP mechanism, agencies involved, and ministries. Questions often test agency-role matching.