CCI's cotton procurement crosses one crore bales, Telangana leads

The Cotton Corporation of India (CCI) has procured over 1 crore bales (170 kg each) at the minimum support price (MSP) in the 2024-25 season. Telangana leads procurement with 40.38 lakh bales, followed by Maharashtra (29.34 lakh) and Gujarat (14.10 lakh). Other key states include Karnataka (5.22 lakh), Madhya Pradesh (3.95 lakh), and Andhra Pradesh (3.83 lakh).

This year’s procurement is the second highest after 2019-20, when CCI purchased 1.05 crore bales. With India’s cotton production estimated at 294.25 lakh bales, CCI has procured over a third of the total crop. Market arrivals reached 244.25 lakh bales by March 29, covering 82 per cent of the estimated output. Despite steady arrivals, raw cotton prices in parts of Gujarat and Maharashtra remain below MSP. Mills are not rushing to buy, while weak export demand and high basis levels keep multinational traders cautious.

Analysts expect cotton prices to firm up as private stocks deplete, pushing mills to source from CCI. If ICE cotton futures rise, domestic prices could climb further, narrowing the gap between CCI and market rates.