Cotton procurement by CCI picks up pace in state

Indore: With a jump in cotton arrival in the spot markets of Madhya Pradesh and amid lower prices, procurement of cotton by the Cotton Corporation of India (CCI), a nodal agency set up under the ministry of textile for trade and procurement of cotton, has picked up pace.
CCI has procured around 55,000 bales (1 bale is 170 kg) of raw cotton as of December 25 at the government fixed minimum support price (MSP).The MSP for medium staple cotton stands at Rs 6,620 per quintal while for long staple cotton, it stands at Rs 7,020 per quintal.
An official from CCI wishing anonymity said, “We have procured 55,000 bales of cotton in the state so far. Arrivals of cotton have increased in the spot markets, and we would continue buying until prices remain lower or hover around the MSP. We are purchasing produce from farmers as per the standard quality parameters and farmers should not panic looking at the lower prices.”
Daily arrival of cotton in the spot markets of MP is estimated at 40,000 quintals with more than 60 per cent getting procured by CCI, cotton traders said. The nodal agency is purchasing raw cotton from farmers after checking the moisture content in the produce and other quality parameters.
CCI has set up 21 procurement centres in MP. Most of these centres were set up in Nimar and Malwa region like Khargone, Khandwa, Kukshi, Dhamnod and other trading centres.
CCI gives the procured produce to the contracted ginning units for processing in every state.
Kailash Agrawal, a cotton farmer, and owner of ginning units in Khargone said, “Farmers have increased the supplies of cotton in the spot market because prices have dropped but most supplies are going to CCI and only a limited amount comes in the market for traders. The quality produce is procured by CCI.”
The Cotton Association of India (CAI) in its crop estimate for November has pegged cotton output in Madhya Pradesh to decline to 18 lakh bales as against 19.5 lakh bales in the last season.