The Cotton Corporation of India (CCI) has significantly ramped up cotton procurement in the current season, driven by lower market prices compared to the government-mandated Minimum Support Price (MSP), according to a report.
With over 30.98 lakh bales already procured, primarily from Telangana, the CCI is intervening to support farmers facing price distress, the report added. This marks a significant shift from the past three years where CCI’s procurement was minimal.
The current season has seen a notable price gap between market rates and MSP, prompting farmers to opt for government-backed purchases. Telangana has emerged as the primary source for CCI’s procurement, contributing over two-thirds of the total. Other major contributors include Maharashtra, Andhra Pradesh, and Karnataka.
While the final procurement figures for the season are yet to be determined, industry estimates project a range of 60 to 100 lakh bales. This surge in CCI’s intervention highlights the importance of government support mechanisms in ensuring fair prices for farmers, particularly during periods of market volatility.
