Last Updated on May 5, 2026 10:33 pm by BIZNAMA NEWS
Staff Reporter / New Delhi
The Union Cabinet has approved the Mission for Cotton Productivity, Kapas Kanti, with an outlay of over 5,600 crore rupees to address bottlenecks, declining growth, and quality concerns in India’s cotton sector. Addressing a press briefing in New Delhi, Information and Broadcasting Minister Ashwini Vaishnaw said the mission aligns with the Government’s 5F vision, Farm to Fibre to Factory to Fashion to Foreign, and focuses on enhancing cotton productivity.
The scheme aims to develop high-yielding variety seeds that are resistant to diseases and pests, while promoting the large-scale adoption of modern crop production technologies. The scheme is expected to benefit around 32 lakh cotton farmers and boost cotton production to 498 lakh bales by 2030-31.
The Union Cabinet has also approved the Emergency Credit Line Guarantee Scheme 5.0. The Minister shared that the scheme aims to provide credit guarantee support to help businesses manage short-term liquidity mismatches arising from the West Asia crisis. Under the scheme, a 100 percent credit guarantee will be provided for MSMEs, while a 90 percent guarantee will be extended to non-MSMEs and the airline sector. The guarantee coverage will be offered to Member Lending Institutions by the National Credit Guarantee Trustee Company Limited for the amount in default under the additional credit facility extended to eligible borrowers.
The Cabinet has also approved a Fair and Remunerative Price of 365 rupees per quintal for sugarcane for the 2026-27 sugar season, based on a basic recovery rate of 10.25 percent. Mr Vaishnaw said the decision will benefit around 5 crore sugarcane farmers, along with nearly 5 lakh workers employed in sugar mills and related ancillary activities.
The Union Cabinet has also approved two more semiconductor projects under the India Semiconductor Mission. These include the country’s first commercial Mini/Micro-LED display facility based on Gallium Nitride (GaN) technology, along with a semiconductor packaging facility. Mr Vaishnaw said the approved proposals will establish semiconductor manufacturing units in Gujarat with a cumulative investment of around 3,936 crore rupees.
Mr Vaishnaw added that the projects are expected to generate employment for about 2,230 skilled professionals.