New Delhi, Mar 22 (IANS): The government has approved an additional expenditure of Rs 748.08 crore for the Cotton Corporation of India and Maharashtra State Co-operative Cotton Growers Marketing Federation towards reimbursement of losses on sale of cotton procured under the MSP operations during cotton years 2014-15 and 2015-16.

The decision was taken at the Cabinet Committee on Economic Affairs (CCEA) meeting chaired by Prime Minister Narendra Modi. The government said that it also approved an expenditure of Rs 312.93 crore for reimbursing the losses to CCI and MSCCGMFL on sale of cotton procured under the minimum support price (MSP) operations during cotton years 2017-18 and 2018-19.

The cotton year is from October to September. The government in an official statement said that the CCEA has given its ex-post facto approval for engaging Maharashtra State CoAoperative Cotton Growers Marketing Federation Ltd (MSCCGMFL) to undertake minimum support price (MSP) operations in the state of Maharashtra as sub-agent of Cotton Corporation of India (CCI) during the cotton years 2017-18 and 2018-19.

"The approval will help in price support operations of cotton which helps in stabilising cotton prices and is primarily aimed to safeguard the interests of the farmers and controlling any distress sale," an official statement said.