The Cotton Corporation of India (CCI) has procured about 40 lakh bales of cotton as part of its MSP procurement operations so far during the season, amounting to 25% of the crop arrivals in the market, top officials of the corporation said to the Financial Express.
CCI’s target is to procure nearly 90 lakh bales. The corporation may be able to procure around 60 lakh bales given the current market conditions. Prices are currently bearish and may rise to an extent as the season-end nears.
Nearly 40% of the arrivals have come into the market till date.
The CCI has been buying in the regions, where private players were not actively buying. Some private players have been gradually increasing purchases in the last few days due to an improvement in global prices.
Responding to a demand put forth by the South Indian Mills Association (SIMA) urging the textile minister to instruct CCI to sell cotton at market prices, P Alli Rani, CMD, CCI said “My stock is always available and open for sale but the industry should not expect CCI to sell its top quality cotton at a loss.”
Mill owners have complained that the price of Rs 46,000 per candy (of 356 kg each) quoted by the CCI is too high.
The Southern India Mills’ Association (SIMA) has urged the Union textile minister Smriti Irani to intervene and direct CCI to avoid holding the cotton and sell the commodity at market price on a regular basis to arrest price escalation. SIMA chief said that mills are not able to source cotton from CCI as the price quoted by CCI is exorbitantly high when compared to the market price quoting `46,000 per candy as the base price as against the market price of Rs 40,000 per candy of 355 kg.
Cotton mills have decided not to participate in our tendering process since they do not want to pay the price set by CCI. Small and cooperative mills have been buying from CCI, but the big mills have not been participating in CCI’s tenders and CCI could sell only 200,000 bales of the 10.8 lakh bales it had procured in the previous cotton year.