The Cotton Corporation of India (CCI) will start purchasing cotton if the crop fits into parameters set by the procurement agency in terms of moisture content.

CCI will first attempt to sell its stock of 17 lakh bales procured during the previous season and then take a call on buying cotton from farmers subject to market conditions.

Now prices of cotton are around Rs 2,500 per quintal, which is above minimum support price, and therefore there is no requirement as yet for cotton procurement. However, as arrivals increase, a possibility could arise for procurement from farmers.

At present, arrivals that have begun in parts of the country have a moisture content between 18 to 20 per cent. CCI purchases cotton with a moisture content below 12 per cent.

The agency expects to begin procurement from Telengana this season followed by Andhra Pradesh and Maharashtra. In Telengana, CCI has established 84 purchase centers. Some 330 centers may be opened across cotton growing regions of the country.

Mills from the country have been purchasing cotton from the corporation. There is an expected slump in cotton output by 5 to 10 lakh bales this year because acreage has been affected to the tune of some 20 per cent.

cotcorp.gov.in