This season onwards, Cotton Corporation of India has introduced stricter quality norms for ginning and processing units in cotton-producing states. Until now, there was a loophole in trash and moisture content that was exploited by some ginners. Indian cotton is of a lower grade as it contains higher trash content and moisture but India is the only exporter which gives trash and moisture guarantees in the global trade. India introduced mandatory traceability in cotton a couple of months ago but its implementation is likely to take some time. Because of stricter norms, the inventory with CCI is of good quality and most buyers have expressed satisfaction with it.
CCI has procured 11.6 lakh bales so far, nearly four times the amount collected during the same period the previous year. Procurement is likely to touch 15 lakh bales by the end of this season. Prices have firmed up and therefore the purchase under procurement is down. The 348 centers are active and will remain open throughout the season to ensure that the market remains stable.
Of the total procured stocks, around 80 per cent have been purchased from Telangana, followed by Maharashtra. Cotton was also procured from Andhra Pradesh, Karnataka, Madhya Pradesh and Orissa.