CCI begins MSP cotton procurement amid low prices in five states

The cotton corporation of India (CCI) has initiated procurement at the minimum support price (MSP) in five states as cotton market prices remain low. The state-run agency has already purchased 2.25 lakh bales of cotton since the start of the current season in October.

CCI chairman and MD, Lalit Kumar Gupta, informed that the agency is closely monitoring market trends and will intensify its procurement efforts in regions where prices fall below the minimum support price (MSP). A clearer picture of the market situation is expected within the next two weeks.

Nishant Asher, Secretary of the Indian Cotton Federation, attributed the weak cotton prices to several factors. While cotton arrivals have increased to 1.3-1.4 lakh bales per day, Indian cotton remains around 5 per cent more expensive than international counterparts. Additionally, subdued yarn demand and exports have further dampened cotton prices.