The Cotton Corporation of India (CCI) is yet to start procurement operations. It says, the volatility in prices is one of the main reasons behind its reluctance to go ahead with purchases. The CCI is waiting for cotton prices to come down since private traders are offering a higher price than the stipulated minimum support price. Farmers are presently getting up to Rs 4,500 per quintal from private traders, while the minimum support price for cotton is Rs 4,100. Therefore, the CCI is waiting for market prices to come down.

CCI feels farmers are not facing any losses even if they didn’t start procurement as private traders are already purchasing cotton brought to the markets. There has been extensive damage to the cotton crop in Punjab because of the severe whitefly attack. This has caused staggering losses. Due to the whitefly attack, the cotton production may go down by 40 per cent this year.

As against around 13 lakh bales production last season, CCI is expecting around 7.50 lakh bales this time. Punjab has appealed to the textile ministry to relax the norms for cotton procurement in the wake of the extensive damage to the cotton crop.