"To ensure supplies to the Indian textiles industry, the Cotton Corporation of India (CCI) has resorted to commercial purchase of cotton at market rates from around the country. CCI has issued notices reaching out to buyers informing them that they will shortly commence e-auction of FP bales for the cotton season 2016-17. Buyers who are not yet registered may register themselves with the for participating in e-auction of FP bales."
To ensure supplies to the Indian textiles industry, the Cotton Corporation of India (CCI) has resorted to commercial purchase of cotton at market rates from around the country. CCI has issued notices reaching out to buyers informing them that they will shortly commence e-auction of FP bales for the cotton season 2016-17.
Buyers who are not yet registered may register themselves with the for participating in e-auction of FP bales. M M Chockalingam, CMD (in-charge) said that after a gap of almost four years, the Corporation has made a small beginning and purchased about 1,000 bales of 170 kg each so far at commercial rates from various centres even as cotton trades firm on lower arrivals due to the impact of the currency crunch.
The CCI expects to purchase around 15 lakh bales for the season of 2016-17. The prices of the commodity are ruling between Rs 5 000 and Rs. 5,200 per quintal in various markets while Minimum Support Price (MSP) is at Rs 4,160 per quintal and therefore procurement at MSP seems unlikely, he added.
However, apart from MSP operations, CCI also has to perform commercial operations at times in the interests of the farmers and to keep the market stable. CCI has been purchasing kapas or raw cotton from markets wherever the prices are lower. The commercial purchase of up to 15 lakh bales would be mainly from the West, Central and Southern parts of the country as prices in the Northern markets are being quoted at a higher price. Kapas prices are ruling between R5, 000 to R5, 200 per quintal in various markets. While prices are expected to soften a bit from next month, most experts have ruled out a drastic fall.
