India’s cotton exports have gained momentum with Cotton Corporation of India (CCI) selling around 5 million bales in the past two months. Cotton traders say, there is huge demand for organic cotton from Bangladesh though demand for traditional cotton has declined by 10 per cent due to heavy rains. This demand is likely to revive as higher moisture levels in soil help farmers increase production during later pickings.

CCI held nearly a third of the cotton that arrived in the country during the 2019-20 (October-September) season. However, it refused to sell cotton at a loss and carried almost all of the stock in May. The corporation started selling at a loss since June which helped it liquidate close to 50 per cent of its stocks.

It currently sells cotton at Rs 38,200 per candy of 356 kg each. Small traders and brokers have alleged that its discount scheme on bulk purchases has helped only the big companies and traders, who have benefited by selling this cheap cotton in domestic and export markets.

At present, cotton prices are ruling much below the minimum support price (MSP), which has been fixed at Rs 5825/quintal. Private traders are likely to stay away from buying cotton when arrivals gather pace from the end of October. CCI is all set to purchase cotton in the north while it will begin preparations from October 1 for MSP operations in southern India.