Agri Business

Telangana, Odisha and Punjab top in CCI’s cotton procurement

Pune | Updated on February 15, 2021 Published on February 15, 2021

Cotton Corporation appears ready to commence procurement

Telangana, Punjab and Odisha are three top States that have got maximum benefits of cotton procurement by the Cotton Corporation of India (CCI) during the current season 2020-21 (October 1, 2020 to September 30, 2021).

CCI has procured 55 per cent of the cotton procured in Telangana followed by 45 per cent in Punjab and 44 per cent in Odisha. CCI has procured 90.87 lakh bales (24.49 % of the total production) under Minimum Support Price (MSP) operations.

According to the data presented by the Ministry of Textile in Lok Sabha last week CCI Telangana produced 60 lakh bales of which 33.33 lakh bales were procured under MSP operations. Punjab and Odisha procured 12 lakh bales and 4.5 lakh bales respectively of which 5.38 lakh bales and 1.98 lakh bales were procured.

Gujarat is the highest cotton producer State with the production of 90.5 lakh bales. CCI procured 4.05 lakh bales( 4.48%) from Gujarat. Maharashtra, the second-highest producer, produced 86 lakh bales of which 17.45 lakh bales (20.29%) were procured.

According to the Ministry, the CCI has not stopped the purchase of cotton at MSP. “Further due to substantial increase in kapas rates during the last three weeks, the ruling price of kapas are more than MSP rates in most cotton-growing states and farmers are getting a better price for their produce from market. Hence, intervention is not presently required in these states. However, CCI is procuring around 25,000 to 30,000 bales per day in the cotton-growing areas wherever the prevailing kapas prices are ruling below MSP” the Ministry told the Lok Sabha.

The Ministry added that India is a net cotton surplus country wherein production is more than its consumption. As there is sufficient availability of cotton in the country, the export of surplus available cotton may not affect the textile units in the country. Rather, it will help the farmers to receive a better price for their cotton.

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Published on February 15, 2021
procurement
cotton (commodity)
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