CCI procures 94 lakh bales, but cotton prices stay below MSP

The Cotton Corporation of India (CCI) has procured 94 lakh bales under the Minimum Support Price (MSP) scheme as prices remain below MSP due to weak demand, says CCI Managing Director Lalit Kumar Gupta. Procurement continues across all states, with CCI officials monitoring market yards until the last arrivals. The Cotton Association of India (CAI) reported cumulative market arrivals at 216 lakh bales as of March 1. CAI recently lowered its crop estimate to 301.75 lakh bales, while the first advance estimate stands at 299 lakh bales.

Market arrivals have slowed as farmers hold back 10-15 per cent of their crop. Raw cotton prices range between Rs 6,500-7,000 per quintal, below the MSP of Rs 7,121. However, cottonseed prices have improved by Rs 200-300 per quintal.

Daily arrivals have fallen below 90,000 bales, with CCI purchasing nearly half. Mills, requiring one lakh bales daily, are increasing purchases but avoiding higher prices, said CAI President Atul Ganatra. Pressed cotton prices, range from Rs 53,000-54,500 per candy. Experts say unless ICE futures rise, domestic cotton prices will remain subdued, further pressured by cheaper imports, with Indian mills contracting 29 lakh bales this year.