Anticipating a reduction in cotton output to 18 lakh bales from Madhya Pradesh in 2023-24, Cotton Association of India (CAI), a key agency for cotton trade and procurement has set a target of 14 lakh bales for cotton exports for the 2023-24 period.
Operating under the Ministry of Textile as a key agency for cotton trade and procurement, the Cotton Corporation of India (CCI) procured approximately 6.35 lakh quintals of cotton until February this year from farmers in Madhya Pradesh.
This season, CCI also established 21 procurement centers across Madhya Pradesh in response to a decline in cotton prices observed in various centers nationwide, attributed to high arrivals and subdued global demand. Notably, the government had set the Minimum Support Price (MSP) for medium staple cotton at Rs 6,620 per quintal and for long staple cotton at Rs 7,020 per quintal. CCI's procurement was notably absent in the previous season due to cotton prices prevailing above the MSP.
Market analysts have observed a decline in cotton arrivals in spot markets, with expectations of further decreases in the coming weeks. They attribute this trend to increased demand from textile mills, which are reportedly operating at full capacity.
