New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following organisation procures cotton from

    farmers through price support operations under the minimum support price (MSP) mechanism?
    A Cotton Mills Correct Answer Incorrect Answer
    B State Cotton Commissions Correct Answer Incorrect Answer
    C Cotton Commission of India Correct Answer Incorrect Answer
    D Cotton Corporation of India Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    · Cotton Corporation of India was established in 1970 under Companies Act 1956. It’s a Government of India’s corporate agency, engaged in diverse activities related to trade, procurement, and export of cotton. CCI is governed by Textile Policy 1985 issued by Ministry of Textiles, Government of India. · The Commission for Agricultural Costs & Prices (CACP) recommends MSPs for 22 mandated crops and fair and remunerative price (FRP) for sugarcane. · CACP is an attached office of the Ministry of Agriculture and Farmers Welfare. · 60 central public sector enterprises (CPSEs) under ministries of fertiliser, textiles, chemicals and petrochemicals, pharmaceuticals and commerce are likely to feature on the initial list of firms for privatisation or closure, as the government embarks on implementing the new public sector enterprises (PSE) policy in the ‘non-strategic sectors’. · There are about 175 CPSEs in the non-strategic sector, one-third of which will ultimately be closed and of the rest, viable units will be privatised while a handful of not-for-profit companies will be retained in the public sector. · A group of officers from Niti Aayog, department of public enterprises and administrative ministries are identifying the companies which will be privatised or closed as per the PSE policy. · All the nine CPSEs under the fertiliser ministry, including Madras Fertilizers and National Fertilizers are likely to be privatised over the years. · Cotton Corporation of India (CCI) and the Jute Corporation of India (JCI) will be retained in the government sector as they are public good companies set up for the welfare of farmers. CCI procures cotton and JCI jute from farmers through price support operations under the minimum support price (MSP) mechanism. · The Budget for FY22 unveiled the strategic sector policy which entails that the government have a minimum presence in the four broad sectors while the remaining ones can be privatized or merged or closed.

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