New Delhi, Sep 10 - The cabinet Thursday approved the allocation of Rs.1,473 crore for the Cotton Corp of India (CCI) to meet the losses it has incurred in procuring cotton under the minimum support price (MSP) scheme.

'The implementation of the decision will not only ensure remunerative returns to the cotton growers without quantitative restriction but also enable CCI for smooth conduct of MSP operations during the cotton season,' the government said in a statement.

'It will also enable the CCI to meet anticipated losses to be incurred on procurement of raw cotton from the farmers,' the statement added.

It said the MSP - a guaranteed price for farm produce - is fixed 'in recognition of the importance for assuring a reasonable price to cotton farmers, motivating them to adopt improved technology and to promote investment in farm enterprises'.