CCI`s Cotton Procurement Soars to 32.85 Lakh Bales: Market Dynamics and Quality Initiatives Drive Success by Amit Gupta, Kedia Advisory
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Amidst robust procurement figures reaching 32.85 lakh bales, CCI's strategic interventions navigate shifting market dynamics, with a spotlight on Telangana's substantial contribution. Additionally, the sale of Kasturi Cotton Bharat underscores quality-driven initiatives, fetching premium prices and enhancing India's competitiveness globally.
Highlights
CCI's cotton procurement at MSP: The Cotton Corporation of India has procured approximately 32.85 lakh bales of cotton at the minimum support price (MSP) so far in the 2023-24 marketing season.
Procurement distribution: The majority of the procurement, around 24 lakh bales, has been from Telangana, with the rest from various other states.
State-wise procurement: Maharashtra saw 2.44 lakh bales procured, followed by Andhra Pradesh at 1.30 lakh bales and Madhya Pradesh at 1.27 lakh bales.
Revised crop production estimates: The Committee on Cotton Production and Consumption (CCPC) raised the crop production estimates for the current season to 323.11 lakh bales.
Market prices above MSP: Open market prices rose above MSP levels, leading to a decrease in CCI's procurement since early February.
CCI's intervention: With prices prevailing 7-8% above MSP, CCI is not actively procuring cotton at MSP, as farmers are getting better prices in the market.
MSP for 2023-24 kharif season: The MSP for seed cotton is ?6,620 a quintal for medium staple and ?7,020 for long staple variety, with current raw cotton prices hovering above MSP.
CCI's presence in markets: CCI's team is present across markets in the country and ready for intervention if required, with daily market arrivals at 80,000-1,00,000 bales and mill consumption at around 85,000 bales.
Sale of Kasturi Cotton Bharat: CCI has started selling Kasturi Cotton Bharat, a certified cotton, with about 5,000 bales already sold, receiving a premium over market price due to good quality.
Conclusion
CCI's commendable procurement milestone of 32.85 lakh bales, primarily from Telangana, reflects its adaptability to market fluctuations. While rising market prices have shifted procurement dynamics, the institution remains vigilant, with a keen eye on quality through initiatives like Kasturi Cotton Bharat. This success not only bolsters domestic cotton production but also strengthens India's position in the global cotton market, fostering a sustainable ecosystem for all stakeholders involved.
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