Is the Government Really Setting Up 550 Centres to Buy Cotton from Farmers at MSP?

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Is the Government Really Setting Up 550 Centres to Buy Cotton from Farmers at MSP?

Synopsis

The Indian government is taking a significant step to support cotton farmers by establishing 550 procurement centres across the country, ensuring they receive fair prices for their produce. With a focus on digital transformation and farmer empowerment, this initiative marks a new chapter in the agricultural sector.

Key Takeaways

  • 550 procurement centres will be established nationwide for cotton procurement.
  • Procurement will begin on different dates across regions.
  • The initiative aims to secure fair prices for cotton farmers.
  • A digital platform will enhance transparency and efficiency.
  • Local Monitoring Committees will support farmers on-ground.

New Delhi, Sep 3 (NationPress) Union Minister of Textiles Giriraj Singh has outlined ambitious plans to establish 550 procurement centres across the nation to purchase cotton from farmers at the minimum support price (MSP) during the upcoming kharif marketing season, set to commence on October 1.

The minister reiterated the government's commitment to safeguard the interests of cotton farmers by securing remunerative prices for their harvest and promoting a transition towards a digitally empowered cotton ecosystem, as stated in an official release on Wednesday.

He presided over a high-level review meeting attended by Neelam Shami Rao, Secretary Textiles, alongside other senior officials from the Ministry of Textiles and the Cotton Corporation of India, evaluating the readiness for MSP operations for cotton during the forthcoming Kharif marketing season 2025–26, which begins on October 1.

Uniform guidelines have been established for the formation of procurement centres, taking into account essential factors such as the cotton cultivation area, the presence of functional APMC yards, and at least one operational stock processing factory at each cotton procurement centre.

Consequently, a historic total of 550 procurement centres have been launched in key cotton-producing states. Cotton procurement under MSP will initiate on October 1 in the Northern States, October 15 in the Central States, and October 21 in the Southern States, as per the statement.

Aligned with the Government's Digital India vision, all processes—from cotton procurement by the Cotton Corporation of India (CCI) under MSP to stock sales—are now fully faceless and paperless, enhancing farmers' and other stakeholders' trust and confidence in MSP operations, the minister noted.

This season will see the introduction of nationwide Aadhaar-based self-registration for cotton farmers, along with a seven-day rolling slot booking feature via the newly launched 'Kapas-Kisaan' mobile application.

This digital initiative aims to streamline procurement operations, promote transparency, and facilitate direct Aadhaar-linked payments to farmers' bank accounts via the National Automated Clearing House (NACH). The SMS-based payment notification service introduced last year will persist.

To bolster on-ground assistance, Local Monitoring Committees (LMC) will be formed at each APMC mandi for immediate grievance resolution by the States. Additionally, dedicated state-level helplines and a Central CCI helpline will operate throughout the procurement period. Sufficient manpower, logistics support, and other infrastructural measures will be in place prior to the initiation of the cotton season, the statement concluded.

Point of View

I believe this initiative by the government not only demonstrates a commitment to supporting our farmers but also reflects a significant shift towards a more digitized agricultural sector. Ensuring fair prices and facilitating smoother transactions through technology is crucial in today's economy.
NationPress
03/09/2025

Frequently Asked Questions

What is the purpose of the 550 procurement centres?
The procurement centres are being set up to buy cotton from farmers at the minimum support price (MSP), ensuring they receive fair compensation for their produce.
When will the cotton procurement under MSP begin?
Cotton procurement under MSP will commence on October 1 in the Northern States, October 15 in the Central States, and October 21 in the Southern States.
How will the government ensure transparency in the procurement process?
The government will utilize a digital platform for Aadhaar-based self-registration and paperless transactions, enhancing transparency and trust.
What are Local Monitoring Committees (LMC)?
Local Monitoring Committees will be established at each APMC mandi to address grievances and provide immediate support to farmers during the procurement period.
What technological advancements are being implemented?
The government is launching the 'Kapas-Kisaan' mobile app for streamlined procurement operations and direct payments to farmers’ accounts through NACH.