Government procurement of cotton reaches above 63 lakh bales

In the ongoing 2024-25 cotton marketing season, the Cotton Corporation of India (CCI) has successfully procured over 63 lakh bales of cotton, which accounts for 46% of the expected total arrivals of about 136 lakh bales in the mandis.

This procurement, undertaken by CCI under the Union Textiles Ministry, reflects a significant increase in activity compared to the previous period.

The majority of the procurement has been concentrated in Telangana, which alone contributed 32 lakh bales.

Maharashtra follows with 16 lakh bales, while Gujarat, Andhra Pradesh, and Karnataka provided smaller quantities, ranging from 3 lakh to 5 lakh bales each. Other states like Madhya Pradesh, Odisha, Rajasthan, Haryana, and Punjab also contributed to the government procurement, albeit in smaller amounts.

The surge in procurement from mid-December onward is attributed to a drop in cotton prices due to weak demand and high supply.

The prices fell below the minimum support price (MSP), prompting increased government intervention. The MSP for the 2024-25 season has been set at ₹7121 per quintal for medium fiber cotton and ₹7521 per quintal for fiber varieties.

Despite this, the prevailing prices in major mandis have been around ₹7100-7200 per quintal for long fiber cotton, leading to an expected rise in government procurement as the season progresses.

Additionally, cotton prices have fallen by ₹1000-1200, reaching ₹53,500-54,500 per candy (356 kg), further stimulating government procurement.