CCI purchases 10,000 bales of cotton under commercial operations; 70 lakh bales under MSP

By: |
Published: February 29, 2020 1:15:02 AM

The Cotton Advisory Board’s provisional production estimate for this season is 360 lakh bales.

cotton, cotton industryThe Cotton Association of India has pegged 2019-20 crop at 354.5 lakh bales, compared with 312 lakh bales last year.

Cotton Corporation of India (CCI) has purchased 10,000 bales over the last few days for its commercial account due to low prices, said P Alli Rani, chairman cum managing director, CCI.

“There has been a marginal increase in buying for the commercial account, but we are hard pressed for people because of the MSP purchases which are in full swing.I do not have much infrastructure but because of lower prices this year I have floated a tender for the same,” she said.

This is probably the first time the commercial purchase is happening alongside the MSP operations. Last year, the agency had commenced commercial operations during end of March. The agency has floated a tender to purchase cotton at `39,400-39,500 per candy (1 candy =356 kg) from the open market through an electronic auction.

CCI has purchased 70 lakh bales from farmers in the MSP operations so far. The state-owned company is also the government’s nodal agency for purchases under the minimum support price scheme. Nearly 65% of the cotton arrivals have come into the market, she said. Gujarat, Maharashtra and Telangana are the top three cotton growing states in the country.

The minimum support price for medium-staple variety of cotton is Rs 5,255 per quintal and Rs 5,550 per quintal for long staple cotton. Alli Rani said that the corporation is likely to purchase some 80 lakh bales under MSP operations for this season and could even buy up to 96 lakh bales subject to market conditions.

The Cotton Advisory Board’s provisional production estimate for this season is 360 lakh bales. The CCI has nine lakh bales stock of cotton from the previous seasons and 70 lakh bales from this season. Nearly 53% of cotton procured so far this season is from Telangana.

The Cotton Association of India has pegged 2019-20 crop at 354.5 lakh bales, compared with 312 lakh bales last year. The CCI might look at exports, though it was not keen on it, she said, adding that they have received inquiries from Bangladesh for exports.

Reacting to the fall in international prices, she termed it as a knee jerk reaction to the coronavirus and felt that the situation should settle in a few day

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Ready for BS-VI supply, prices to go up marginally from April 1: IOC
2Wholesale onion prices firm up on lifting of ban on export; farmer bodies still unhappy
3Gold to get costlier? History shows rally has just started