The Cotton Corporation of India (CCI) has procured 33 lakh bales of cotton at the Minimum Support Price (MSP) from farmers during the ongoing cotton season, which is set to conclude next month.
Lalit Kumar Gupta, Chairman and Managing Director, CCI notes, the corporation conducts two e-auctions daily: one specifically for textile mills and another open to all buyers.
Despite these efforts, the offtake by mills has been sluggish, largely due to an accumulation of yarn stocks and a slowdown in demand. For almost 25 days, CCI sold only 25,000-30,000 bales daily. However, sales increased recently with the corporation selling 20,000 bales. Currently, CCI holds a stockpile of nearly 20 lakh bales.
Looking ahead, CCI needs to prepare for the next cotton season that begins October asMSP operations are expected to expand during this period, emphasises Gupta.
Toincentivise textile mills to purchase more cotton, CCI has introduced a new measure allowing mills to take delivery within 60 days from Aug 01, 2024. Additionally, the corporation has appealed to mills to secure their stock requirements for the current cotton season, aiming to boost sales and manage inventory levels more effectively.
