“₹1,718 Cr MSP Support Boosts Cotton Farmers & Textile Sector”
2026-03-19 18:21:54
MSP help of ₹1718 crore: Big support to cotton farmers and textile industry: Atul Ganatra
MSP support of ₹1,718.56 crore has emerged as a major boost for India’s cotton farmers and the textile industry, according to former Cotton Association of India President Atul Ganatra. Speaking in an exclusive interview to CNBC Awaaz, he explained that the government’s allocation is aimed at compensating losses incurred by the Cotton Corporation of India (CCI) during MSP procurement in the 2023–24 season. However, he emphasized that this should be viewed not as a loss but as direct support to farmers.
India has nearly 60 lakh cotton farmers, most of whom benefit directly from the MSP mechanism. According to Ganatra, the MSP system not only protects farmers’ incomes but also ensures that the textile industry receives cotton at stable and competitive prices through CCI operations.
He noted that adequate stock availability with CCI plays a stabilizing role in the market. In the current season, CCI procured around 1.06 crore bales at MSP, helping maintain price stability across the supply chain. Out of total arrivals, nearly 1.05 crore bales were procured, ensuring that farmers received prices close to the MSP of ₹8,100 per quintal. In states like Maharashtra and Gujarat, prices even touched ₹8,500–₹8,600 per quintal in some cases.
Ganatra added that MSP-based procurement helps prevent sharp price fluctuations, benefiting farmers while also supporting the textile industry when CCI releases cotton at lower rates. This, in turn, improves export competitiveness and production efficiency.
He also highlighted that farmer sentiment remains positive, which could potentially lead to a 15–20% increase in cotton sowing in the next season. Demand conditions are currently strong, with spinning mills earning healthy margins of ₹20–₹25 per kg on yarn. Export demand, particularly from China, is also robust, with advance orders already booked for April–May.
On the supply side, the cotton stock situation remains comfortable. CCI holds around 1 crore bales, while ginners and spinning mills collectively maintain nearly three months of stock. With cotton prices relatively soft and yarn prices firm, spinning mills are currently operating under favorable conditions and continue active procurement.
Suggestion highlighted in the report: Ganatra noted that the financial burden borne by CCI is ultimately funded by taxpayers. He suggested that cotton procured under MSP should be prioritised for domestic textile industries instead of being sold in international markets. According to him, such a policy would strengthen the value chain and provide long-term benefits to both farmers and the industry.
