CCI has sold more than 56 lakh bales of cotton so far

08-Jul-2025 04:43 PM

Mumbai. During the ongoing 2024–25 marketing season (October–September), the Cotton Corporation of India (CCI), a government agency under the Union Textiles Ministry,

procured approximately 100 lakh bales of cotton from farmers in major producing states at the Minimum Support Price (MSP). So far, the CCI has successfully sold over 56 lakh bales. Each bale of cotton weighs 170 kilograms.

Interestingly, despite a significant decline in domestic cotton production this season, market prices remained below the MSP, prompting large-scale government procurement.

Due to the relatively high MSP, Indian cotton became expensive compared to international prices. This price gap led many Indian textile mills to prefer imported cotton, resulting in a surge in imports by over 131 percent.

With private millers currently inactive in the domestic market, textile units have become increasingly reliant on CCI’s stock.

Industry analysts highlight that the government agency purchased around one-third of the country’s total cotton output. However, selling this inventory has not been a challenge.

Cotton prices are showing signs of recovery, arrivals in the market have slowed, and demand from the textile sector remains strong. An 11 percent customs duty continues to apply on imported cotton.

As of the first week of July, the CCI had sold 56.34 lakh bales and still holds around 43 lakh bales in stock. Most of the carryover stock from the previous season has already been liquidated.

Meanwhile, cotton sowing is progressing actively across the country. New arrivals are expected to begin in September in northern states and from October in others.

For the 2025–26 marketing season, the government has raised the MSP of cotton by ₹589, fixing it at ₹7,710 per quintal for medium staple cotton and ₹8,110 per quintal for long staple varieties. The cotton cultivation area so far is slightly ahead of last year.