The Cotton Corporation of India (CCI) has procured 19.20 lakh bales of 170 kg cotton to date in the current marketing year 2023-24 (October-September). Industry sources have indicated that the government trading company has procured 80 percent of its cotton from the southern states. Last year, CCI could not procure a significant quantity of cotton due to higher prices in the open market.
CCI is purchasing cotton at the minimum support price (MSP) set by the government. It has increased the MSP by around 10 percent for the current season. The corporation is buying unginned cotton (Kapas) from farmers at ₹6,620 per quintal for medium staple and ₹7,020 per quintal for long staple.
According to sources, CCI has purchased 14.50 lakh bales of cotton from Telangana in the current crop season. Additionally, it has bought 1.12 lakh bales of cotton in Andhra Pradesh and 49,600 bales from Karnataka. In Central India, 94,000 bales of cotton were purchased from Madhya Pradesh, 78,800 bales from Maharashtra, and 15,000 bales from Gujarat. In the northern Indian states, CCI purchased 36,700 bales from Punjab, 32,400 bales from Haryana, and 20,200 bales from Rajasthan. Furthermore, the government has purchased 37,800 bales of cotton from other states in the country, including Odisha.
Cotton prices have eased to near or below the MSP, prompting CCI to step in for the buying of this natural fibre. This trend contrasts with the last season (2022-23), when cotton prices were maintained at much higher levels in the open market, preventing CCI from purchasing significant quantities.
CCI has procured 80 percent of its cotton from the southern states, as it could not obtain standard quality cotton in the northern states. Heavy rains in the late monsoon led to pink bollworm disease, which severely affected the quality and yield of cotton in upper Rajasthan and Punjab. CCI had to halt cotton purchases in Punjab due to poor quality. Later, it resumed but adhered to quality standards, which restricted its buying in the northern states.
