The availability of huge stock of cotton with CCI has reduced the worries of textile mills

03-Apr-2025 07:42 PM

Cotton Stock with CCI Eases Concerns for Textile Mills

📌 Key Update: The Cotton Corporation of India (CCI) has procured 1 crore bales of cotton in the 2024-25 marketing season (Oct-Sep), reducing supply concerns for textile mills.

Procurement Breakdown

🔹 Highest purchases:

  • Telangana – 40.38 lakh bales

  • Maharashtra – 29.34 lakh bales

  • Gujarat – 14.10 lakh bales

  • Karnataka – 5.22 lakh bales

🔹 Government procurement was also done in MP, AP, Tamil Nadu, Punjab, Haryana, Rajasthan, and Odisha.
🔹 The total domestic production is estimated at 294.27 lakh bales, and CCI has procured over one-third of this.

Market Insights

✔️ Cotton MSP (2024-25):

  • Medium fiber: ₹7,121/quintal

  • Long fiber: ₹7,521/quintal

✔️ Domestic market price remains below MSP, leading to high government procurement.
✔️ CCI holds significant stock, ensuring textile mills don’t face supply shortages.
✔️ Import of good-quality cotton continues despite high domestic stock.
✔️ CCI is selling its stock, but high offer prices (due to MSP-based procurement) discourage buyers.

Future Implications

🔸 If domestic demand remains low, CCI may consider exporting cotton.
🔸 Millers prefer cheaper market cotton over CCI stock, which may affect sales.
🔸 Government intervention may be needed to balance price and demand.

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