National Food Security Mission (NFSM)-Commercial Crops (CC) programme, subsuming the Mini Mission-II (MM-II) of Technology Mission on Cotton (TMC), is being implemented (from 2014-2015) in major Cotton growing States, including Maharashtra. Further, the Cotton Corporation of India Ltd. (CCI), as a nodal agency, has been mandated to procure the entire quantity of FAQ grade seed cotton (kapas) offered by cotton farmers in the nominated market yards of various States without any quantitative limit, in the event of prevailing seed cotton (kapas) prices touching the Minimum Support Price (MSP) level. Government is also implementing various schemes like Technology Upgrading Fund Scheme (TUFS), Scheme for Integrated Textile Parks (SITP), Integrated Skill Development Scheme (ISDS) and Scheme for the development of Power-loom Sector, Yarn Supply Scheme for Handloom Sector etc. for improving the competitiveness of textile industry, including cotton.

No fiscal incentive is provided on exports of cotton and cotton yarn as on date. However, these products are entitled to benefits of duty free imports of capital goods and raw materials required for their production and exports. Import of cotton and cotton yarn is permitted freely subject to Basic Custom Duty of 0 % and 10 % respectively.

The information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

Minimum Support Price procurement triggers CCI obligation to buy offered FAQ seed cotton; duty free imports for inputs remain allowed. The Cotton Corporation of India Ltd. is mandated to procure the entire quantity of FAQ grade seed cotton offered by farmers in nominated market yards whenever prevailing seed cotton prices reach the Minimum Support Price. Supportive measures include implementation of the National Food Security Mission-Commercial Crops programme and various textile competitiveness schemes. No fiscal export incentives are provided for cotton or cotton yarn, though these products are eligible for duty free importation of capital goods and raw materials; imports of cotton and cotton yarn are otherwise permitted subject to basic customs duty.