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The Cabinet Committee on Economic Affairs (CCEA) has declared NAFED as an Agency under the Department of price support operation in respect of cotton, in addition to Cotton Corporation of India(CCI), with immediate effect. The CCEA, which met today, has decided to utilise the Government Guarantee already given by the Department of Agriculture & Cooperation in favour of NAFED for price support operation in respect of pulses and oilseeds, for cotton also. It has also been decided to reimburse fully the losses incurred, if any, from disposal of cotton procured under price support operation by way of domestic sale and/or export.
NAFED will be allowed to undertake cotton procurement on the CCI pattern. However, NAFED will be utilising the network of cooperatives for speedy procurement of cotton under price support operations in the interest of farmers, for which, NAFED will be paid service charges in the case of oilseeds and pulses. It has been decided to proceed ahead on the lines recommended by Commission on Agricultural Costs and Prices (CACP) with regard to determination of appropriate varieties of cotton for fixation of MSP for 2005-06 season. With the involvement of an additional agency, the procurement of cotton is expected to increase, which will benefit the cotton farmers.
DS/HS/HK/LV
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