This season, Cotton Corporation of India (CCI) is likely to meet or even cross the record procurement figure of 2009, when it had purchased 89 lakh bales. Till date, CCI has procured around 80 lakh bales, exceeding its earlier target of 75 lakh bales, BK Mishra, CMD of CCI, said.
Procurement has slowed down in the last 15 days owing to reduced arrivals on the back of unseasonal rains, he said. “As against normal procurement of 2 lakh bales a day, CCI is now procuring some 1-1.5 lakh bales a day. Most of the cotton has already been harvested. Farmers however are holding onto their kapas instead of bringing it out in the rains and since Holi is to be celebrated this week, arrivals are likely to pick up next week,” he explained.
According to Mishra, prices have also improved by Rs 1,000 per candy bringing in more traders to the market. The exposure of traders has increased and they have begun participating in cotton purchase,” Mishra said.
Lower exports have forced state-run CCI to buy more from farmers this year so that domestic prices do not crash. “Future procurement will depend on the market. At this stage, I can say procurement may go up to 89 lakh bales or even 100 lakh bales bales. However, if the prices improve, this may not be the situation then,” he said.
CCI had last year procured Rs 80 crore worth of cotton. While procurement has been going well, sale operations of CCI have not picked up as anticipated and till date it has sold some 2.5 to 3 lakh bales.