Cotton Corporation of India (CCI)
Cotton Corporation of India (CCI)
Cotton Corporation of India (CCI)
- Established: July 31, 1970
- Headquarters: Mumbai, Maharashtra
- Parent Ministry: Ministry of Textiles, Government of India
Objectives
- To provide a price support system to cotton growers.
- To stabilize the cotton market.
- To ensure a remunerative price to cotton farmers.
- To maintain a buffer stock for exigencies.
Functions
- Price Support Operations (PSO):
- CCI intervenes in the market to buy cotton at the Minimum Support Price (MSP) set by the government.
- Ensures farmers get a fair price even if market prices fall below MSP.
- Commercial Operations:
- Involved in buying and selling cotton in the open market.
- Operates in the interest of price stabilization.
- Quality Control:
- Ensures quality standards of cotton.
- Conducts tests and certifications to maintain high-quality standards.
- Market Intervention:
- Steps in during abnormal price fluctuations to maintain price stability.
- Cotton Development Programs:
- Implements various schemes for the development of the cotton sector.
- Provides extension services to educate farmers on best practices.
Achievements
- CCI plays a crucial role in supporting the livelihoods of millions of cotton farmers.
- Has helped in stabilizing cotton prices in the domestic market.
- Actively involved in improving the quality of Indian cotton to meet international standards.
Challenges
- Fluctuating market prices and international competition.
- Quality issues due to fragmented landholdings and traditional farming practices.
- Climate change impacts on cotton production.
Recent Initiatives
- Digital Initiatives: Introduction of online platforms for transparent and efficient cotton procurement.
- Sustainability Programs: Emphasis on sustainable cotton production practices.
- Farmer Education: Programs to educate farmers about advanced agricultural techniques and market trends.
Importance in UPSC Exam
- Economic Impact: Role in stabilizing the cotton economy.
- Social Impact: Contribution to rural livelihoods and farmer welfare.
- Government Policies: Understanding CCI’s role helps in grasping broader agricultural policies and schemes.
- Current Affairs: Keeping track of recent developments and initiatives by CCI.
The Cotton Corporation of India (CCI) plays a pivotal role in the Indian agricultural landscape, particularly in the cotton sector. It ensures fair pricing, quality control, and market stability, thereby supporting millions of cotton farmers across the country. Understanding its functions, achievements, challenges, and recent initiatives is crucial for UPSC exam preparation, especially for topics related to agriculture, economy, and government schemes.
Q. What is the primary role of the Cotton Corporation of India (CCI)?
A) To provide loans to cotton farmers
B) To buy and sell cotton at market prices
C) To ensure a minimum support price (MSP) for cotton
D) To export cotton to international markets
Answer: C) To ensure a minimum support price (MSP) for cotton
Explanation: The CCI’s primary role is to ensure that cotton farmers receive a fair price for their produce by intervening in the market and buying cotton at the Minimum Support Price (MSP) set by the government. This helps stabilize the market and provides price support to farmers.
Q. In which year was the Cotton Corporation of India (CCI) established?
A) 1960
B) 1970
C) 1980
D) 1990
Answer: B) 1970
Explanation: The Cotton Corporation of India (CCI) was established on July 31, 1970, to support cotton farmers and stabilize the cotton market in India.
Q. Which ministry oversees the Cotton Corporation of India (CCI)?
A) Ministry of Agriculture
B) Ministry of Commerce
C) Ministry of Textiles
D) Ministry of Finance
Answer: C) Ministry of Textiles
Explanation: The Cotton Corporation of India (CCI) operates under the Ministry of Textiles, which is responsible for overseeing the cotton and textile industry in India.
Q. Which of the following is a function of the Cotton Corporation of India (CCI)?
A) Setting international trade policies for cotton
B) Providing loans directly to farmers
C) Maintaining a buffer stock of cotton
D) Regulating cotton import tariffs
Answer: C) Maintaining a buffer stock of cotton
Explanation: One of the functions of the CCI is to maintain a buffer stock of cotton to manage market fluctuations and ensure price stability. It does not deal with international trade policies or directly provide loans to farmers.
Q. What recent initiative has the Cotton Corporation of India (CCI) adopted to improve transparency and efficiency in cotton procurement?
A) Launch of new cotton processing plants
B) Introduction of online platforms for procurement
C) Expansion of export markets
D) Establishment of cotton research centers
Answer: B) Introduction of online platforms for procurement
Explanation: The CCI has introduced online platforms to make the procurement process more transparent and efficient. This initiative helps streamline operations and improve accessibility for farmers.
Q. Which of the following is NOT a primary objective of the Cotton Corporation of India (CCI)?
A) Stabilizing the cotton market
B) Providing price support to cotton farmers
C) Regulating international cotton trade policies
D) Maintaining a buffer stock of cotton
Answer: C) Regulating international cotton trade policies
Explanation: The CCI’s objectives include stabilizing the cotton market, providing price support, and maintaining a buffer stock. Regulating international cotton trade policies is not within the scope of CCI’s functions.
Q. The Cotton Corporation of India (CCI) is involved in which of the following activities?
A) Setting cotton export tariffs
B) Conducting international trade negotiations
C) Buying cotton at Minimum Support Price (MSP)
D) Providing direct subsidies to textile manufacturers
Answer: C) Buying cotton at Minimum Support Price (MSP)
Explanation: CCI’s role includes buying cotton from farmers at the Minimum Support Price (MSP) to ensure they get a fair price and to stabilize the market.
Q. In recent years, what has been one of the key initiatives by the Cotton Corporation of India (CCI) to enhance efficiency?
A) Development of new cotton varieties
B) Implementation of digital procurement platforms
C) Expansion of cotton production in non-traditional areas
D) Establishment of new cotton research laboratories
Answer: B) Implementation of digital procurement platforms
Explanation: The CCI has implemented digital procurement platforms to enhance transparency and efficiency in its operations, improving the process for farmers and stakeholders.
Q. What challenge is commonly faced by the Cotton Corporation of India (CCI)?
A) Excessive cotton exports leading to domestic shortages
B) Fluctuating market prices and climate change impacts
C) High-quality cotton production due to advanced technology
D) Overproduction of cotton leading to price increases
Answer: B) Fluctuating market prices and climate change impacts
Explanation: The CCI often faces challenges such as fluctuating market prices and the impact of climate change on cotton production, which affect its operations and the cotton industry as a whole.