The Cotton Corporation of India (CCI) has procured 33 lakh bales of cotton at Minimum Support Price (MSP) from farmers during the current cotton season that will end next month.
CCI CMD Lalit Kumar Gupta told The Hindu that it holds two e-auctions every day - one for textile mills and another for all buyers. The offtake by mills was low reportedly because of yarn stocks with the mills and slowdown in demand. It sold only 25,000-30,000 bales of cotton for almost 25 days. However, the sales picked up on Thursday when it sold 20,000 bales. The CCI currently holds almost 20 lakh bales stock.
“We need to be prepared for the next cotton season (that will start in October) as we expect heavy MSP operations,” he said.
In order to boost sales to textile mills, the CCI allows the mills to take delivery in 60 days from August 1 and has appealed to the mills to cover their stock requirements for the current cotton season.
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