Increased cotton arrivals in the spot markets of Madhya Pradesh and amid lower prices, has led to an increase in Cotton Corporation of India’s (CCI) procurement to 55,000 bales (1 bale is 170 kg) at the government fixed minimum support price (MSP).

Currently medium staple cotton is being sold at a MSP of Rs 6,620 per quintal while long staple cotton is being sold at MSP of Rs 7,020 per quintal.

Daily 40,000 quintals of cotton arrives at the spot markets of MP. Over 60 per cent of this is procured by CCI. The nodal agency purchases raw cotton from farmers after checking the moisture content in the produce and other quality parameters.

CCI has set up 21 procurement centres in MP. Most of these centres were set up in Nimar and Malwa region like Khargone, Khandwa, Kukshi, Dhamnod and other trading centres.

CCI gives the procured produce to the contracted ginning units for processing in every state.