Lok Sabha Question No. 2839 (UNSTARRED), answered on 2023-12-20
Subject: Purchase of Cotton by CCI
Ministry: TEXTILES
Asked by: Srinivas Kesineni

## PURCHASE OF COTTON BY CCI

2839. SHRI KESINENI SRINIVAS: SHRI A. GANESHAMURTHI:

Will the Minister of TEXTILES वस्त्र मंत्री be pleased to state :

- (a) the details of the quantity of cotton purchased by the Cotton Corporation of India (CCI) at MSP during the last ten years, State-wise including Andhra Pradesh;
- (b) whether it is a fact that there has been an overall decline in cotton purchases by the CCI during the  last  ten  years,  especially  in  Andhra  Pradesh  and  if  so,  the  details  thereof  including  the production of cotton and the area under cotton cultivation in Andhra Pradesh during these years;
- (c) whether the Cotton Corporation of India (CCI) regularly enter the market in all seasons to purchase the cotton in the country and if so, the details thereof;
- (d) if not, the reasons for not purchasing cotton from the farmers, resulting in middlemen thriving and hiking the yarn price;
- (e) whether the Government has mechanisms to monitor adherence to procurement norms by the field staff; and
- (f) if so, the details of any cases of irregularities in procurement in Andhra Pradesh in the last five years?

उत्तर

## ANSWER

## वस्त्र राज्  य मंत्री ( श्रीमती दर्शना जरदोर् )

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

(a) & (b): The details of quantity of cotton purchased by the Cotton Corporation of India (CCI) at Minimum Support Price (MSP) during the last ten years; State-wise including Andhra Pradesh is at Annexure-I . The cotton purchased by CCI depends on the variation in the market price and the MSP. The intervention of CCI is hardly required in case of higher market price as farmers get better prices than the MSP. The details of the production of cotton and the area under cotton cultivation in Andhra Pradesh during the last ten years is enclosed at Annexure-II .

(c) & (d): CCI, a Nodal Agency for undertaking MSP operations of cotton has established a comprehensive  infrastructure  comprising  17  Branches  and  444  Procurement  Centres  in  145 Districts  to  safeguard  cotton  farmers  from  any  eventuality  of  distress  sale.  CCI  officials  remain present  at  procurement  Centres  during  the  cotton  season  to  keep  close  watch  on  kapas  arrivals, market rates and to meet any eventuality to undertake MSP procurement of Fair Average Quality (FAQ) grade kapas offered by farmers with no quantitative restriction.

(e) & (f): Before procurement of cotton at MSP, the farmers are identified by the respective Agricultural Produce Market Committee (AMPC) followed by Aadhar based registration of farmers by State Government or CCI as the case may be, to ensure that the benefit of MSP scheme goes to real  cotton  farmers.  Complete  payment  to  farmers  is  made  into  the  bank  account  of  the  farmer linked with Aadhar through e-mode. CCI ensures quality based price to cotton farmers by equipping each centre with scientific instruments for assessment of quality of cotton. MSP guidelines issued by  Textile  Commissioner  Office  are  strictly  followed.  Ginning  and  Pressing  factories  where processing of kapas is done are engaged through tender system where minimum processing results such as lint%, shortage%, trash etc are stipulated. Appropriate deductions are made from the bills of Ginners in case of any deviation. After processing, all cotton bales are stored in the godowns hired from  Central  Warehousing  Corporation  (CWC)  or  State  Warehousing  Corporations  (SWC).  No irregularities in procurement of cotton have been reported in State of Andhra Pradesh in last five years.

Annexure-I State-wise MSP Procurement of Cotton during last ten years including Andhra Pradesh

(Quantity in bales)

| State          | 2014-15   | 2015-16   | 2016-17   | 2017-18   | 2018-19   | 2019-20     | 2020-21   | 2021-22   | 2023-24*   |
|----------------|-----------|-----------|-----------|-----------|-----------|-------------|-----------|-----------|------------|
| Punjab         | 1,27,722  |           |           |           |           | 3,55,955    | 5,35,728  |           | 25,229     |
| Haryana        | 79,903    |           |           |           |           | 6,22,861    | 10,57,172 |           | 19,246     |
| Rajasthan      | 87,870    |           |           |           |           | 3,75,690    | 9,11,176  |           | 9,272      |
| Gujarat        | 6,66,457  | 51,501    |           | 95,105    | 7,983     | 11,05,227   | 4,15,363  |           | 60         |
| Maharashtra    | 17,63,192 | 1,16,799  |           | 14,647    | 1,95,751  | 26,25,284   | 17,51,462 |           | 7,777      |
| MP             | 2,81,875  | 29,104    |           | 7,797     | 50,923    | 4,42,567    | 4,43,975  |           | 29,083     |
| Telangana      | 36,90,948 | 5,95,159  |           | 2,63,491  | 7,77,026  | 41,80,317   | 34,01,456 |           | 4,85,280   |
| Andhra Pradesh | 17,55,559 | 39,967    |           | 6,497     | 4,718     | 2,68,288    | 3,41,692  |           | 63,513     |
| Karnataka      | 1,39,280  |           |           | 297       | 8,117     | 3,49,467    | 1,25,986  |           | 16,919     |
| West Bengal    | 266       | 368       | 465       | 352       | 186       | 43          | 68        | 129       | 217        |
| Orissa         | 1,02,987  | 11,633    |           | 1,991     | 25,454    | 1,60,658    | 2,05,300  |           | 6,149      |
| Tamil Nadu     |           |           |           |           | 253       | 28,271      |           |           |            |
| Total          | 86,96,059 | 8,44,531  | 465       | 3,90,177  | 10,70,411 | 1,05,14,628 | 91,89,378 | 129       | 6,62,745   |

*Position upto 14.12.2023

oteNote: There were no MSP operations during cotton season 2022-23 as market price of cotton was higher than MSP.

Annexure- II Details of the Production of Cotton and the Area under Cotton Cultivation in Andhra Pradesh during the last ten

## years:

| Crop year   |   Area (in lakh hectares) |   Production (in lakh bales) |
|-------------|---------------------------|------------------------------|
| 2014-15     |                      8.21 |                        26.5  |
| 2015-16     |                      6.66 |                        23.75 |
| 2016-17     |                      4.72 |                        19    |
| 2017-18     |                      6.46 |                        21.26 |
| 2018-19     |                      6.2  |                        15    |
| 2019-20     |                      6.57 |                        18    |
| 2020-21     |                      6.06 |                        16    |
| 2021-22     |                      5.54 |                        17.08 |
| 2022-23(P)  |                      7.04 |                        15.41 |
| 2023-24(P)  |                      5.69 |                        12.85 |

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