The Cotton Corporation of India (CCI) on Tuesday said it has procured 32.81 lakh bales of cotton so far in the ongoing 2023-24 season with maximum quantity from Telangana, Andhra Pradesh and Maharashtra.
The CCI is the government's nodal agency for the procurement of cotton at a minimum support price (MSP). It undertakes procurement when prices fall below the MSP level. Cotton season runs from October 2023 to September 2024.
"CCI did not procure cotton last year as prices were ruling above the MSP level. However this year, prices started falling since mid-October 2023 onwards due to various factors and the CCI began procurement," a senior CCI official told PTI.
About 32.81 lakh bales (of 170 kg each) have been purchased at MSP till date in the 2023-24 season. Much of the quantities have been procured from Telangana, Andhra Pradesh, Maharashtra and Gujarat, the official said.
Of which, the CCI has already disposed of 3.37 lakh bales of cotton. The government has fixed an MSP for medium staple cotton at Rs 6620 per quintal, while for long-staple cotton at Rs 7,020 per quintal for 2023-24.
The official said from March-end onwards, cotton prices in the open market are ruling above MSP and it is unlikely farmers would sell their produce to the CCI. However, the CCI will be ready for procurement if the rates fall again below the support price. Cotton production is pegged at 323.11 lakh bales for the 2023-24 season, lower than 336.6 lakh bales achieved in 2022-23, as per the agriculture ministry estimate. PTI LUX LUX MR
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