Lok Sabha Question No. 2439 (UNSTARRED), answered on 2023-03-15
Subject: Merger of CCI and Jute Corporation of India
Ministry: TEXTILES
Asked by: Manne Srinivas Reddy, Raghu Ramakrishna Raju Kanumuru, Komati Reddy Venkat Reddy

## MERGER OF CCI AND JUTE CORPORATION OF INDIA

## 2439. SHRI MANNE SRINIVAS REDDY:

SHRI KANUMURU RAGHU RAMA KRISHNA RAJU:

SHRI KOMATI REDDY VENKAT REDDY:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

- (a) whether the Government proposes to merge Cotton Corporation of India (CCI) and Jute Corporation of India, if so, the details thereof and reasons therefor;
- (b) whether CCI is incurring losses due to the insufficient sales of cotton, if so, the details thereof, Statewise since 2014 onwards and corrective steps being taken and also details of losses incurred till date;
- (c) whether the Government proposes to give special package to revive CCI, if so, the details thereof and if not, the reasons therefor;
- (d) whether the Government has reduced allocation of budget for the year 2023-24 as compared to year 2022-23,  if  so,  the  details  thereof  comparatively  during  the  last  five  financial  years  and  if  not,  the reasons therefor; and
- (e) whether the Government has released the sanctioned funds/allocated funds under budget and if so, the details thereof and if not, the reasons therefor?

## उत्तर

ANSWER

## वस्त्र राज् य मंत्री ( श्रीमती दर्शना जरदोर् )

## THE MINISTER OF STATE FOR TEXTILES (SMT. DARSHANA JARDOSH)

- (a): There is no such proposal to merge Cotton Corporation of India (CCI) and Jute Corporation of India (JCI).
- (b) & (c): No, CCI is not incurring any losses. The highlights of performance of CCI since 2014-15 are as follows:

| Particulars                                 | Financial Year   | Financial Year   | Financial Year   | Financial Year   | Financial Year   | Financial Year   | Financial Year   | Financial Year   |
|---------------------------------------------|------------------|------------------|------------------|------------------|------------------|------------------|------------------|------------------|
| Particulars                                 | 21-22            | 20-21            | 19-20            | 18-19            | 17-18            | 16-17            | 15-16            | 14-15            |
| Purchase (in Lakh Bales)                    | 0.06             | 112.67           | 84.51            | 11.03            | 10.77            | 0.95             | 9.17             | 86.37            |
| Sales (in Lakh Bales)                       | 104.01           | 101.71           | 2.17             | 8.35             | 2.56             | 9.67             | 86.34            | 4.2              |
| Turnover (in Rs. crores)                    | 23,565.24        | 34,632.46        | 6,452.21         | 2,832.45         | 1,392.22         | 1,962.96         | 17,066.97        | 5,389.27         |
| Profit After Tax (in Rs. crores)            | 13.29            | 26.13            | 38.07            | 50.99            | 9.33             | 7.44             | 11.69            | 22.59            |
| Dividend paid to Government (in Rs. crores) | 18.17            | 18.63            | 20.75            | 15.30            | 2.80             | 2.25             | 3.51             | 5.00             |

CCI has been a profitable and a dividend paying company, therefore there is no such proposal of special package for its revival.

(d) & (e): No advance budget is allocated to CCI.  Under the Minimum Support Price (MSP) Scheme, the Government of India reimburses the losses incurred in MSP operations to CCI and, therefore, if CCI incurs  any  loss  in  MSP  operations  in  2023-24,  additional  budget/funds  will  be  sought  as  per  the requirement. Since cotton season 2021-22 & 2022-23, seed cotton prices for FAQ grade are ruling much above MSP level and farmers are getting about 25% higher rates above MSP by market forces itself, farmers  did  not  require  any  price  support  from  CCI.  Accordingly,  no  price  support  required  during cotton season 2021-22 as well as in the cotton season 2022-23, however, losses incurred in previous years were reimbursed in FY 2021-22 and 2022-23.

Statement of MSP support given to CCI by Government of India since 2014-15 is as follows:

| Financial Year   | MSP Support Received from Government during the Financial Year (Rs. in Crore)   |
|------------------|---------------------------------------------------------------------------------|
| 2014-15          | -                                                                               |
| 2015-16          | 259.60                                                                          |
| 2016-17          | 602.75                                                                          |
| 2017-18          | 99.00                                                                           |
| 2018-19          | 911.96                                                                          |
| 2019-20          | 1,850.40                                                                        |
| 2020-21          | 566.84                                                                          |
| 2021-22          | 8,086.89                                                                        |
| 2022-23          | 119.86                                                                          |

****