CCI to open 550 procurement centers in North India to support domestic farmers

The Cotton Corporation of India (CCI) is preparing for market intervention starting October 1 by opening a record 550 procurement centers in North India. This is aimed at supporting domestic farmers as cotton prices are expected to remain low due to record imports and weak demand. The CCI, which procured 1 crore bales last season, is liquidating its existing stock of 12 lakh bales to make way for the new crop

While cotton acreage has decreased in Gujarat and Maharashtra, it has grown in Southern states like Telangana, Karnataka, and Andhra Pradesh. This shift is expected to offset the declines elsewhere, with the crop in South India projected to reach 105 lakh bales, up from 88 lakh bales last year.

CCI's proactive market intervention is crucial to stabilize prices and protect farmers' incomes in the face of record imports, which are being driven by a temporary removal of import duty. While a better crop is expected in India, weather-related damage in key growing regions and bearish global trends will necessitate government support to ensure the profitability of the domestic cotton industry.