Since October 1, the Cotton Corporation of India (CCI) has procured close to 3 lakh bales of cotton after cotton prices dropped in various cotton-growing regions across the country, mainly in the tribal and remote areas.
After a gap of two years, procurement at such scale is taking place, Lalit Kumar Gupta, chairman and managing director of CCI told CNBC-TV18. CCI didn’t have to intervene last year largely because cotton prices were as high as 1 lakh per candy. During the pandemic, CCI had procured 20.72 lakh bales valuing ₹5,615 crore from 4 lakh cotton farmers. However, during the entire cotton season 2019-20, CCI made a record procurement of 105.15 lakh bales worth ₹28,500 crore. During the cotton season 2020-21, CCI has procured around 92 lakh bales.
Gupta added, “As of date, we have procured 3 lakh bales. MSP operations are going on. We are making purchases in states wherever the prices are going down. We are present in 11 states. If we receive fair average quality cotton, we are offering farmers the MSP.”
Looking at the lull in the market, he added, CCI may continue certain MSP operations in three or four states. However, there is no target as such for procurements.
In the majority of areas, cotton prices are just 2-5 percent above the MSP. He stated, “At present, production and consumption of cotton is not a major price deciding factor. Despite the fall in cotton prices, there are fewer takers for cotton.” He believes once global demand revives, cotton prices are likely to firm up.
The government has fixed MSP for medium staple cotton at ₹6,620 per quintal and for long staple cotton at ₹7,020 per quintal for 2023-2024 cotton season.
(Edited by : Keshav Singh Chundawat)
