The Cotton Corporation of India (CCI) has procured over one lakh bales in the current season till date. Last season, the corporation had procured over 4 lakh bales by this time.
The Cotton Corporation of India (CCI) has procured over one lakh bales in the current season till date. Last season, the corporation had procured over 4 lakh bales by this time. CCI chairman & managing director P Alli Rani said the corporation had procured over 1 lakh bales which is not as much as the corporation would have liked to purchase from farmers. “But, it is a good thing. It means that markets are looking up and traders are buying from farmers, although the minimum support price (MSP) is high,” she said.
According to the CMD, of the 348 centres in the country where CCI has a presence, prices are higher than MSP in most centres except for 25 centres. “Market prices are above the MSP by only `50 to `100 which is good for us. When the daily arrivals pick up, the situation may change. Currently, traders are offering prices a little higher than MSP. The presence of CCI in the market is also keeping prices above MSP,” she said.
The Centre has fixed MSP of long staple cotton at `5,450 per quintal from `4,320 per quintal, that is 26% more than last year.
MSP of medium staple cotton has been fixed at `5,150 per quintal from `4,020 per quintal last year, marking a 28% increase over last year. However, prices have been higher this season against last season on the reports of production cut by the cotton body, Cotton Association of India and US Department of Agriculture.
According to market sources, prices are in the range of `5,400-5,600 per quintal.
Arrivals had improved to nearly 1.5 lakh bales per quintal but most of the crop was purchased by traders, Alli Rani said. She said a major portion of the procurement had been from Telangana where prices are lower than MSP. CCI didn’t have the need to intervene in Maharashtra, Madhya Pradesh and Gujarat. According to the ginning community, the sentiment has been weak from October this year from the start of season and the situation is likely to continue till mid-January when the festive season begins. As per Cotton Advisory Board estimates, this year output is projected at 361 lakh bales, nearly 20 lakh bales more than that estimated by CAI. CAI revised its yield projections downwards last week as it feared crop losses in major cotton producing states such as Gujarat, Maharashtra, Telangana and Karnataka and brought it down to 340.25 lakh bales for 2018-19. CAI cut the estimate for Gujarat by 3 lakh bales, Maharashtra by 1 lakh bales and Telangana by 1.50 lakh bales.