September 9, 2025 2:23 am

Tamil Nadu Cotton Farmers Struggle with MSP Gaps

CURRENT AFFAIRS: Tamil Nadu cotton farmers, Minimum Support Price (MSP), Cotton Corporation of India (CCI), ginning factories, procurement rules, transport costs, Andhra Pradesh model, cotton cultivation, farmer support, textile sector

Tamil Nadu Cotton Farmers Struggle with MSP Gaps

Cotton in Tamil Nadu

Tamil Nadu Cotton Farmers Struggle with MSP Gaps: Cotton farming in Tamil Nadu covers nearly 70,000 hectares across 19 districts. The state has traditionally contributed to India’s textile industry, with farmers depending on MSP to ensure stable incomes. However, access to MSP operations has remained limited for cultivators in the region.

Static GK fact: Tamil Nadu is India’s leading textile hub, contributing over 30% to the country’s textile production.

Issues with CCI Procurement

The Cotton Corporation of India (CCI) is mandated to buy cotton when prices fall below MSP. Yet, since 2021, the CCI has not procured a single quintal from Tamil Nadu farmers. The main reasons are restrictive procurement conditions that exclude most districts.

Static GK fact: CCI was established in 1970 under the Ministry of Textiles.

Procurement Rules and Challenges

CCI requires a minimum of 3,000 hectares of cotton cultivation in a taluk and a ginning factory within 20 km to set up a procurement centre. Tamil Nadu farmers fail to meet these conditions because cotton fields are scattered and ginning factories are far away. Farmers often face distances of 100–200 km, which makes procurement inaccessible.

High Transport Costs

Transporting cotton to distant ginning factories costs about ₹500 per quintal. These expenses are not covered under MSP operations, pushing farmers to sell at lower market rates. This lack of support directly impacts profitability and discourages cotton cultivation in the state.

Comparison with Andhra Pradesh

In contrast, Andhra Pradesh provides transport cost reimbursement to cotton farmers. This policy enables farmers to access MSP benefits without financial loss. Experts suggest that Tamil Nadu should adopt a similar support model to safeguard the interests of its cotton growers.

Static GK Tip: Andhra Pradesh and Maharashtra are among the top cotton-producing states in India.

The Way Forward

To ensure MSP benefits reach Tamil Nadu cotton farmers, policy changes are essential. Relaxing procurement rules, increasing ginning capacity within districts, and offering transport subsidies can create a fair support system. Strengthening cotton farming will also boost the state’s textile industry, which relies heavily on local raw material.

Static Usthadian Current Affairs Table

Tamil Nadu Cotton Farmers Struggle with MSP Gaps:

Topic Detail
Cotton area in Tamil Nadu 70,000 hectares across 19 districts
CCI procurement in Tamil Nadu No procurement since 2021
CCI procurement rule Minimum 3,000 hectares and ginning factory within 20 km
Distance to ginning factories 100–200 km from farms
Transport cost per quintal Around ₹500
Andhra Pradesh model State reimburses transport costs for farmers
Establishment of CCI 1970 under Ministry of Textiles
Tamil Nadu textile contribution Over 30% of India’s textile production

 

Tamil Nadu Cotton Farmers Struggle with MSP Gaps
  1. Tamil Nadu cotton grown on 70,000 hectares across 19 districts.
  2. State contributes over 30% of India’s textile output.
  3. Cotton Corporation of India (CCI) buys cotton below MSP.
  4. CCI established in 1970 under Ministry of Textiles.
  5. Since 2021, CCI procured zero cotton from Tamil Nadu.
  6. Rule requires 3,000 hectares and ginning factory within 20 km.
  7. Tamil Nadu farmers fail due to scattered cultivation and distance.
  8. Farmers travel 100–200 km to reach ginning factories.
  9. ₹500 transport cost per quintal makes MSP unviable.
  10. Andhra Pradesh reimburses transport cost, helping cotton farmers.
  11. Lack of support forces farmers to sell below MSP.
  12. Policy gap discourages cotton cultivation and farmer income growth.
  13. Farmers face profitability issues and reduced textile sector support.
  14. Experts recommend transport subsidies to protect farmer interests.
  15. Suggestion to relax procurement rules for Tamil Nadu farmers.
  16. Increasing ginning factories inside districts will help MSP access.
  17. Andhra Pradesh and Maharashtra are leading cotton producers.
  18. Strengthening cotton farming supports textile industry raw material needs.
  19. Farmers demand fairer procurement and supportive government reforms.
  20. Solution lies in subsidies, relaxed rules, local ginning capacity.

Q1. How much cotton area does Tamil Nadu cultivate?


Q2. Since which year has CCI stopped procurement from Tamil Nadu farmers?


Q3. What is the minimum area requirement for CCI procurement?


Q4. What is the average transport cost per quintal for TN farmers?


Q5. Which state provides transport reimbursement to cotton farmers?


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