Lok Sabha Question No. 2550 (UNSTARRED), answered on 2016-12-01
Subject: Procurement of Cotton
Ministry: TEXTILES
Asked by: B.V. NAYAK

## 2550.   SHRI B.V. NAIK:

## Will the Minister of TEXTILES वस्त्र मंरी be pleased to state :

(a) the measures being taken by the Union Government to promote the procurement of cotton from farmers by the Cotton Corporation of India Limited (CCIL) at the Minimum Support Price (MSP) ;

(b) whether  cotton  farmers  receive  remuneration  that  is  equal  to  or  in  excess  of  the  MSP through contract farming of cotton by CCIL; and

(c) if so, whether Government is taking any measures to promote contract farming of cotton and if not, the reasons therefor?

## उत्तर

## ANSWER

## वस्त्र मंरी ( )

## MINISTER OF TEXTILES

## (SMT. SMRITI ZUBIN IRANI)

(a) : Government of India has requested all major cotton producing states to devise procedure so  that  the  officials  from  State  Agriculture  Department,  District  Collectors  and  Agricultural Produce Marketing Committee (APMC) officials may ensure that only bonafide cotton farmers sell  their  produce  to  Nodal  Agencies  without  any  involvement  of  Commission  Agents  or middlemen or traders so as to ensure that the benefit of MSP is received by cotton farmers only and not by anyone else.

Cotton  Corporation  of  India  Limited  (CCIL)  has  been  entrusted  with  procurement  of cotton from farmers at Minimum Support Price (MSP).  Based on the MSP operations 2015-16, CCI has geared up its entire infrastructure for undertaking MSP purchases as and when required in more transparent manner and has taken following initiatives:-

- (i) Display  of  MSP  rate  and  quality  parameters  in  each  and  every  market  yards  in local language for farmers' knowledge to avoid distress sale of cotton. Necessary information is also disseminated through advertisements in the newspapers.
- (ii) Adherence of use of moisture meter in case of rejection of kapas having excessive moisture over 12%.
- (iii) All payment to farmers through Real Time Gross Settlement (RTGS) only.
- (iv) Developed  an  online  Grievance  Redressal  Mechanism  inbuilt  in  its  website. Farmers may lodge their grievance and get redressal if any on instant basis.
- (v) Appointment of Nodal Officer of Chief General Manager/General Manager level at each  of  three  regions  i.e.  North,  Central  &  South.  Contact  Numbers  of  these officers are given on Corporation's website.
- (vi) Continuous monitoring of MSP  procurement through Enterprise Resource Planning (ERP) System.
- (vii) Created  a  separate  page  on  CCI  website  having  all  related  details  in  connection with MSP procurement.
- (viii) Ensured updation of MSP data on its website on day to day basis.

## PROCUREMENT OF COTTON

- (b): Presently,  CCIL is  not  engaged  in  contract  farming  due  to  unwillingness  on  the  part  of mills and ginning pressing factory owners to participate in the contract farming.
- (c): Since the cotton production is more than consumption in the Country, interest for growing cotton  in  contract  farming  is  not  getting  an  impetus  in  other  varieties  except  for  Extra  Large Staple (ELS) variety  of cotton. In some pockets of Tamil Nadu and lower Rajasthan, contract farming of ELS variety of cotton like Suvin, DCH is being taken up by private Mills to ensure growing of authentic quality of ELS variety (i.e. above 34 m.m. staple length).

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