Cotton Corporation of India: Ensuring Fair Prices and Farmer Welfare
- vidyarthee2021
- Apr 10
- 2 min read
In a significant boost to cotton farmers across India, the Cotton Corporation of India (CCI) has procured over 100 lakh bales of seed cotton under the Minimum Support Price (MSP) operations. This intervention not only stabilizes the cotton market but also safeguards the interests of millions of cotton growers, especially during times of market distress.
About CCI
Cotton Corporation of India Ltd. (CCI) is a Public Sector Undertaking (PSU) under the Ministry of Textiles.
Established in 1970, CCI's mandate is to intervene in the cotton market to protect farmers from distress sales during periods of price crashes.
It plays a dual role of supporting farmers and ensuring steady raw material supply to the textile industry.
Functions of CCI
Conducts Price Support Operations (PSO) during cotton harvesting seasons.
Procures seed cotton (kapas) from farmers at MSP, as declared by the government.
Operates without any quantitative limits on procurement, thereby ensuring universal access to MSP benefits.
Also engages in commercial operations when market prices are favorable, maintaining market equilibrium.
Digital Initiatives
Cott-Ally App:
A mobile application launched to empower farmers with real-time information on MSP rates, procurement centers, payment details, etc.
Available in nine regional languages to enhance accessibility.
QR Code Traceability:
All cotton bales procured and produced by CCI are tagged with QR codes, enabling complete traceability throughout the supply chain.
Relevance for UPSC
Fits into GS Paper 3: Issues related to agriculture, pricing of agricultural produce, and e-technology in the aid of farmers.
Illustrates government intervention in agriculture markets.
Example of public sector performance, digital governance, and MSP implementation.
UPSC Prelims Statement-Type Question
Consider the following statements about the Cotton Corporation of India (CCI):
CCI operates under the Ministry of Agriculture and Farmers’ Welfare.
It has no quantitative limit on cotton procurement under MSP operations.
CCI has launched a mobile app for farmers called Cott-Ally, available in multiple regional languages.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (b) 2 and 3 only
Explanation:
Statement 1 is incorrect – CCI is under the Ministry of Textiles, not the Ministry of Agriculture.
Statement 2 is correct – CCI undertakes MSP operations without quantitative limits.
Statement 3 is correct – Cott-Ally is a farmer-friendly mobile app available in nine regional languages.
UPSC Mains Question
Q. Discuss the role of Cotton Corporation of India (CCI) in ensuring price stability and supporting cotton farmers in India. How do digital initiatives by CCI contribute to agricultural governance?
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