Cotton procurement by the Cotton Corporation of India (CCI) crossed 8.5 lakh bales in the ongoing 2018-19 cotton season as prices remained below the minimum support prices (MSP) due to weak global prices and low exports. The Corporation expects procurement to touch 15 lakh bales by the end of the season.
A majority of this stock had been procured from Telangana and Maharashtra where farmers are now coming forward to sell to the CCI instead of approaching traders. Cotton is also being bought from Madhya Pradesh, Karnataka and Odisha. Daily arrivals were 13,000-16,000 bales. As per CCI, this increase in procurement is due to a drop in prices. Prices have been declining in the global market. On the Intercontinental Exchange, the price hit a 15-month low last week, while on the Multi Commodity Exchange of India, prices are currently ruling at 10-month lows.