Cotton procurement begins, CCI hopes prices will improve in due course

By: |
November 6, 2020 8:58 AM

Procurement has begun in Punjab, Haryana, Telangana, Rajasthan and Madhya Pradesh. The CCI has been selling new cotton at Rs 41,500-42,000 per candy.

Indian prices are in the range of 41,500 per candy, as compared to RS 45,000-46,000 abroad, and there is good scope for exports.

The Cotton Corporation of India (CCI) has commenced procurement for the 2020-21 season and is ready to procure around 100 lakh bales, PK Aggarwal, CMD of CCI, said. He told FE that procurement has commenced in the north zone from October 1 since the season begins early in these regions. Around 8 lakh bales have so far been been procured, he said. In the year-ago period, the CCI had procured only 24,000 bales.

Procurement has begun in Punjab, Haryana, Telangana, Rajasthan and Madhya Pradesh. The CCI has been selling new cotton at Rs 41,500-42,000 per candy. In Maharashtra, procurement will commence from November 10, thanks to reduction in moisture, said Aggarwal.

There has been a record carry over stock of around 107.5 lakh bales, but the CCI says 70 lakh bales of the total purchase of 115 lakh bales were disposed and some 45 lakh bales remain. Prices are ruling below MSP in most cotton-growing regions.

Aggarwal said cotton prices are unlikely to remain under pressure for the entire season despite a high carryover stock. “There is a good demand in the local and international markets for CCI cotton and spinning mills are getting back to 90% capacity. There should not be any further fall in prices,” he said.

Indian prices are in the range of 41,500 per candy, as compared to RS 45,000-46,000 abroad, and there is good scope for exports.

Get live Stock Prices from BSE, NSE, US Market 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.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1China set to eclipse US as world’s biggest oil refiner
2Petrol, diesel prices rise for third straight day
3Petrol, diesel price hiked for second day in a row