Government may purchase only 20-25 lakh bales of cotton at MSP in current marketing year

The government may possibly purchase only 20-25 lakh bales of cotton in the current marketing year that commenced last month since domestic prices are ruling higher than the Minimum Support Price (MSP) in many parts of the country.  Cotton Corporation of India (CCI) had purchased 87 lakh bales (of 170 kg each) in 2014-15 marketing year, which runs from October to September.

CCI plans to open over 300 centres across the country and will procure mainly in Telangana, Andhra Pradesh and partially in Maharashtra. The state-run corporation has so far purchased 3,000-4,000 bales in Telangana and Andhra Pradesh. It has opened 84 centres in Telangana and 25 centres in Andhra Pradesh. It targets to set up a total 43 centres in Andhra Pradesh and 50 centres in Maharashtra.

The government has fixed the MSP at Rs 4,100 per quintal for long staple cotton and at Rs 3,800 per quintal for medium staple cotton for the 2015-16 marketing year. Presently, cotton prices are ruling at Rs 4,500 per quintal in Punjab, Rs 4,400 in Gujarat, over Rs 4,200 in Maharashtra. In Telangana, prices in most parts of the state are ruling above Rs 4,200 per quintal.