CCI begins liquidating cotton inventory

The Cotton Corporation of India has started liquidating its cotton stock with an initial offer of 5,100 cotton bales of 170 kg each in Telangana. On the first day of initial offer of 5,100 bales, about 1,100 bales were sold in Telangana at a selling cost of about Rs. 1,000-2,000 per bale higher than the market rate. Taking into consideration the falling prices of cotton and expected higher production, the CCI started procuring cotton at Minimum Support Price (MSP) of Rs. 4,050 per quintal from October 2014 onwards to protect farmers in key cotton growing states like Telangana, Andhra Pradesh and Maharashtra.