
New Delhi: The Union Cabinet has approved the ‘Cotton Kanti Mission’ with the aim of boosting cotton production. An outlay of ₹5,659 crore has been allocated for this mission, which is scheduled to be implemented from the 2026-27 fiscal year through 2030-31. India currently stands as the world’s second-largest cotton producer, with approximately 3.2 million farmers across the country engaged in its cultivation. The government’s objective is to enhance production through research, the adoption of new technologies, and the development of new fiber varieties, thereby ensuring that the growing domestic demand—projected to reach 45 million bales—is fully met by 2030-31.
Major Decision for Sugarcane Farmers
The Cabinet has fixed the Fair and Remunerative Price (FRP)—a base price akin to the Minimum Support Price (MSP)—for sugarcane for the 2026-27 season. The total financial impact of this decision is estimated to be approximately ₹1 lakh crore. This move is expected to provide direct benefits to sugarcane farmers across the country.
Relief for the MSME Sector
The government has decided to extend the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. This initiative entails an expenditure of ₹18,100 crore. Its primary objective is to strengthen business operations within the Micro, Small, and Medium Enterprises (MSME) sector by facilitating access to affordable and hassle-free credit facilities.
Major Investment in Infrastructure
The Cabinet has approved the establishment of a ship repair facility (Ship Repair Hub) at Vadinar, Gujarat, at a cost of ₹1,570 crore. This project is expected to boost maritime trade and generate new employment opportunities. Additionally, several major projects within the railway sector have received the green signal.
Nagda-Mathura Line (₹16,403 crore)
Guntakal-Wadi Line (₹4,758 crore)
Burhwal-Sitapur Line (₹2,276 crore)
The laying of third and fourth tracks on these railway lines is expected to alleviate traffic congestion and significantly increase train speeds.
Boost for the Semiconductor Sector
To accelerate chip manufacturing capabilities within the country, approval has been granted for the establishment of two new manufacturing units: Crystal Matrix Ltd. (₹3,068 crore) and Suchi Semicon Pvt. Ltd. Ltd. (₹868 crore)—a move that will bolster India’s technological self-reliance.
Emphasis on Strengthening the Judicial System
The Cabinet has also taken a significant policy-level decision to further strengthen the Supreme Court, which will aid in enhancing the judicial process. Overall, these decisions clearly demonstrate that the government is working simultaneously on four fronts: agriculture, industry, infrastructure, and technology. In particular, initiatives such as the Cotton Revolution Mission underscore the emphasis placed on boosting farmers’ incomes and strengthening the textile sector.
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