Funds worth Rs.5 bn allowed for cotton farmers

February 5th, 2009 - 9:35 pm ICT by IANS  

New Delhi, Feb 5 (IANS) The government Thursday approved allocation of funds to the tune of Rs.5 billion (Rs.500 crore) for cotton growers as “reimbursement of losses”.”The cabinet today (Thursday) approved allocation of Rs.5 billion in the current fiscal, as cotton prices fell below the minimum support price (MSP) in domestic markets to meet an earlier commitment it made to cotton farmers,” an official statement said.

Cotton Corp of India (CCI), a nodal agency of the government for undertaking price support operations, has been directed to dispose of the cotton procured at the MSP rate by offering discounts for bulk purchases.

“The implementation of the decision will enable CCI for smooth conduct of MSP operations during the current cotton season 2008-09,” the statement added.

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