The Cotton Corporation of India (CCI) has sold about five lakh bales of cotton through the e-auction portal in the current cotton season. CCI places 25 small-sized lots every day and in response to the demand for smaller lots. The scheme seems to be working well for domestic prices. Since the launch of the portal in April 2013, the corporation has sold around 7.5 million bales through e-auction. However there has been a drop in domestic mill consumption because of a production slowdown and a pile up of yarn stocks.

With China liquidating its stock of cotton, India has a surplus. This, coupled with a slowdown in production, has resulted in prices decline. Cotton prices are at their lowest in last three years. Mills, which have been holding two or three months’ cotton inventory earlier, are now intent on reducing carrying charges. Their stock on hand is around 30 lakh bales. So there will be no shortage of cotton this season. hina seems to have accumulated a stock of about 12 million tons over the last four or five years. During the current cotton season CCI exported about 60,000 bales to Bangladesh through e-auction.

cotcorp.gov.in/