CCI buys 32.81 lakh bales cotton at MSP.

India's Cotton Corporation of India (CCI) has begun purchasing cotton from farmers to support prices that dipped below the government-set minimum support price (MSP) since mid-October 2023. This is in contrast to last year, when cotton prices stayed high.

The CCI, a government agency that intervenes when prices fall, has procured 32.81 lakh bales (170 kg each) of cotton so far in the current cotton season (October 2023 - September 2024). Telangana, Andhra Pradesh, Maharashtra, and Gujarat are the leading contributors.

While some cotton has already been sold by the CCI, they are prepared to resume buying if prices fall below MSP again. The government sets MSP to ensure a minimum income for farmers. This year's MSP is Rs 6620 per quintal for medium staple cotton and Rs 7020 for long staple.

Cotton production for 2023-24 is estimated at 323.11 lakh bales, lower than the 336.6 lakh bales of the previous season, according to the agriculture ministry.