New Delhi, Mar 27 (KNN) The Cotton Corporation of India (CCI), the government's nodal agency for cotton procurement at the minimum support price (MSP), has procured 32.81 lakh bales of cotton so far in the ongoing 2023-24 cotton season, which runs from October 2023 to September 2024.

The maximum quantity of cotton has been procured from the states of Telangana, Andhra Pradesh, and Maharashtra. CCI did not procure any cotton in the previous 2022-23 season as market prices were ruling above the MSP level.

However, this season, cotton prices started declining from mid-October 2023 onwards due to various factors, prompting CCI to initiate procurement operations.

Out of the total procurement of 32.81 lakh bales, CCI has already disposed of 3.37 lakh bales. The government had fixed the MSP for medium staple cotton at Rs 6,620 per quintal and for long-staple cotton at Rs 7,020 per quintal for the 2023-24 season.

Of which, the CCI has already disposed of 3.37 lakh bales of cotton. The government has fixed an MSP for medium staple cotton at Rs 6620 per quintal, while for long-staple cotton at Rs 7,020 per quintal for 2023-24.

The official said from March-end onwards, cotton prices in the open market are ruling above MSP and it is unlikely farmers would sell their produce to the CCI.

However, the CCI will be ready for procurement if the rates fall again below the support price. Cotton production is pegged at 323.11 lakh bales for the 2023-24 season, lower than 336.6 lakh bales achieved in 2022-23, as per the agriculture ministry estimate.

According to a senior CCI official, from the end of March 2024 onwards, cotton prices in the open market are ruling above the MSP, making it unlikely for farmers to sell their produce to CCI. Nonetheless, CCI remains prepared for procurement if prices fall again below the support price.

The agriculture ministry estimates cotton production for the 2023-24 season to be 323.11 lakh bales, lower than the 336.6 lakh bales produced in the previous 2022-23 season.

(KNN Bureau)