Cotton Procurement at MSP Hits 63 Lakh Bales Milestone by Amit Gupta, Kedia Advisory
The Cotton Corporation of India (CCI) has procured 63 lakh bales of kapas at Minimum Support Price (MSP) in the ongoing 2024-25 marketing season, representing 46% of the total market arrivals. Key states like Telangana, Maharashtra, and Gujarat have contributed significantly to the procurement. Despite these efforts, kapas prices remain below the MSP levels, creating concerns for farmers. Cotton prices have firmed up in recent weeks due to rising cottonseed prices and steady mill demand. Daily arrivals of over 2 lakh bales are reported, with total market arrivals nearing 136 lakh bales, almost half of the estimated crop size of 300 lakh bales.
Key Highlights
* CCI procures 63 lakh bales of kapas, 46% of arrivals.
* Major procurement from Telangana, Maharashtra, and Gujarat.
* Kapas prices stay below MSP; pressed cotton prices firm up.
* Cottonseed prices surge by 10-15% due to tight supplies.
* Total market arrivals near half of the estimated 300 lakh bales crop.
The Cotton Corporation of India (CCI) has aggressively procured 63 lakh bales of kapas (raw cotton) during the ongoing 2024-25 marketing season, accounting for 46% of the total arrivals of 136 lakh bales as of early January. Telangana leads the procurement tally with 32 lakh bales, followed by Maharashtra and Gujarat with 16 lakh and 5 lakh bales, respectively.
Despite substantial procurement, kapas prices remain below the Minimum Support Price (MSP), which is set at Rs.7,121 per quintal for the medium staple and Rs.7,521 per quintal for the longer staple. Current kapas prices range between Rs.7,100 and Rs.7,200 per quintal in major markets. Pressed cotton prices, however, have firmed up by Rs.1,000-1,250 per candy, hovering around Rs.53,500-54,500 per candy. The firming trend is supported by a 10-15% rise in cottonseed prices to Rs.3,400-3,500 per quintal due to tight supplies.
Daily cotton arrivals have exceeded 2 lakh bales, with significant contributions from Maharashtra and Telangana. Late harvest and elections in Maharashtra delayed the marketing season, but arrivals are now accelerating.
The total cotton crop size is estimated at around 300 lakh bales for the 2024-25 season, reflecting a slight drop due to reduced kharif acreage. Industry experts emphasize the importance of stable MSP-based procurement to support farmers amid fluctuating market conditions.
Finally
CCI’s robust procurement highlights efforts to stabilize cotton prices, but below-MSP rates remain a concern. Rising arrivals and firm cottonseed prices may influence market dynamics ahead.
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