Govt likely to start selling procured cotton next week

By: |
Pune | Published: January 16, 2015 12:11:23 AM

The Cotton Corporation of India (CCI) has procured around 44 lakh bales of cotton and plans...

The Cotton Corporation of India (CCI) has procured around 44 lakh bales of cotton and plans to begin selling them next week.

BK Mishra, MD, CCI told FE that the corporation should exceed procurement of 60 lakh bales by March this year. CCI has target of procuring 60 lakh bales worth R12,000 crore this season (October-September) as prices in majority of the cotton growing states in the country have fallen below the MSP announced by the government.

The target of 60 lakh bales is the highest since 2008-09 when CCI procured around 90 lakh bales of cotton.

“Sale of cotton will happen as per market demand. As of now CCI has made arrangements for sale of cotton. A final decision will be taken after a meeting to be held on January 20,” Mishra said.

“CCI gets a premium on the sale of cotton which is a little more than market prices. Usually it gets 10-15% more,” he said.

Sale of cotton will happen through an e-auction on a centralised portal. Around 150-200 traders register on the portal and registrations are open to all, he said.

The CCI is now present in around 340 centres, and is actively purchasing cotton in about 150 centres.

In southern states of Andhra Pradesh and Telangana, the CCI bought about 70-80% of arrivals, while it procured about 10-15% of arrivals in western states of Gujarat and Maharashtra. In view of thelarge quantity of cotton already procured, the CCI is expected to soon start selling cotton from its stocks.

According to Mishra, farmers from Rajasthan and Gujarat who were earlier holding onto their crop for better prices have begun coming for disposing of their stock.


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.