Cotton procurement by government agencies has begun in Maharashtra. The Maharashtra State Co-Operative Cotton Growers Marketing Federation ( MSCCGMF) has procured around 39,641 quintals so far this season. Some 34,732 quintals of cotton have been procured from Nagpur and 4,929 quintals from Aurangabad. Another 33,000 quintals have been procured by traders.

The federation at the start of the season had said it was ready to procure up to 100 lakh quintals as against the 27 lakh quintals it had purchased last season. The government has fixed the Minimum Support Price at Rs 4,100 per quintal for long staple cotton and at Rs 3,800 per quintal for medium staple for the 2015-16 marketing year. The amount will be credited directly into the bank accounts of farmers.

Meanwhile, the Cotton Corporation of India (CCI) has begun its MSP operations across Andhra Pradesh, Telengana and Maharashtra. It has so far purchased 3,000 to 4,000 bales in Telengana and Andhra Pradesh. Cotton procurement will be much lower this season because prices have not fallen below the MSP in most places. CCI will buy at comparatively higher prices. The corporation plans to open over 300 centers across the country and will procure mainly in Telengana, Andhra Pradesh and partially in Maharashtra.