CCI purchases 94 lakh bales of cotton in the current season

04-Mar-2025 05:52 PM

The Cotton Corporation of India (CCI) has made significant purchases of cotton, acquiring around 94 lakh bales so far during the 2024-25 marketing season, but prices for cotton remain below the minimum support price (MSP) in many areas due to weak demand.

Despite this, CCI continues to buy cotton from farmers across major producing states as long as cotton keeps arriving at government procurement centers. However, the Corporation has not yet decided when it will begin selling the cotton it has purchased.

Data from the Cotton Association of India reveals that over 216 lakh bales of cotton have arrived in the mandis (markets) across the country from October 1, 2024, to March 1, 2025, with each bale weighing 170 kg.

The association has slightly reduced its cotton production estimate for the 2024-25 season to 301.75 lakh bales, a minor increase from the Agriculture Ministry’s earlier forecast of 299 lakh bales.

There has been a noticeable reduction in the arrival of cotton in mandis, with farmers holding onto about 10-15% of their stock rather than selling at the current price levels.

Currently, cotton prices are ranging between Rs 6500 to Rs 7000 per quintal, which is below the MSP of Rs 7121 per quintal for medium fiber cotton and Rs 7521 per quintal for long fiber cotton.

On the flip side, the business of cottonseed has seen an uptick, leading to an improvement in its price by Rs 200-300, reaching Rs 3300-3400 per quintal. Despite weak demand for cotton, the cottonseed market is showing positive movement