The Cotton Corporation of India (CCI) has sold around 10,000 bales at a price of Rs 47,000 per candy through e-auctions in Maharashtra and Telangana. Nearly 70 per cent of the cotton has arrived in the market so far, and with the peak period about to get over, the season is likely to stretch for another couple of months.

Since early March, cotton prices have strengthened by Rs 3,000 a candy to Rs 44,500 now. Spot prices have increased from Rs 45,000 to Rs 45,500 per candy. After the 26 per cent year-on-year increase in 2018-19, the MSP for medium-staple variety of cotton is at Rs 5,150 per quintal, and that for the long-staple variety is at Rs 5,450 per quintal.

Crop output this year is pegged at 328 lakh bales. The Cotton Association of India has procured around 11.60 lakh bales so far, nearly four times the amount collected in the same period the previous year. CCI has also begun purchasing cotton from the open market on its commercial account, amid bullish price indications due to falling supplies. Until now, 7000 bales to 8000 bales of cotton have been purchased on commercial accounts in Karnataka, Maharashtra and in the northern states.