The Cotton Corporation of India (CCI) has started selling its stock due to widespread rains across cotton-growing states such as Andhra Pradesh, Punjab, Haryana, Rajasthan, Maharashtra and Gujarat. CCI has sold nearly 15 lakh bales from its total stock of 86 lakh bales.
It has managed to attract buyers from neighbouring countries such as Bangladesh and sold cotton at approximately 74 cents per lbs from its stocks held in Andhra Pradesh, Gujarat and Maharashtra, said Indian Cotton Federation here on Monday.
In the last few days, CCI has managed to sell about 5,000 bales, which is a good beginning to reduce its huge unsold stock and it will be helpful to domestic mills too, the federation added.
Most of the cotton growing states have started getting good rainfall, which has helped in cotton sowing by farmers in states such as Punjab, Haryana, Rajasthan, Gujarat, parts of Maharashtra and some parts of north Karnataka and small pockets of Andhra Pradesh. It may be recalled that the Union Cabinet has approved an increase of Rs 50 per quintal of seed cotton for medium and long staple for 2015-16 season. New rate will be Rs 3,800 per quintal of seed cotton of medium staple and Rs 4,100 for long staple.