As there is less cotton arriving at market yards this year, the Cotton Corporation of India (CCI) may cease purchasing cotton at the minimum support price (MSP) after March 31. A high-level committee recently discussed this and recommended that the CCI cease procurement after March 31. Cotton prices, however, are much higher than MSP, and no farmers are selling cotton at MSP, so this will have no effect on the market, according to industry experts.
A quality control order (QCO) for mandatory certification of cotton bales was approved at a recent textile advisory group (TAG) meeting in New Delhi, presided over by Union textiles minister Piyush Goyal.
Former chairman of the Powerloom Development and Export Promotion Council (PDEXCIL), Bharat Chhajer, who was present at the meeting, stated, “Deliberations covered multiple issues including certification of cotton, branding of Indian cotton under the ‘Kasturi’ name, and about the low cotton arrivals this year. To increase arrivals, it was suggested that CCI announce that it will no longer buy cotton at MSP after March 31. We expect the government to make a decision on this issue soon.” According to Ajay Dalal, secretary of the GujCot Association, “It is being said that CCI will stop buying cotton at MSP after March 31 to increase arrivals of cotton. Cotton rates at market yards are currently around Rs 1,650-1,700 per 20kg, and the MSP is around Rs 1,260. Cotton prices will not reach MSP levels, in our opinion. Gujarat has received 45 lakh bales, while the national figure is around 1.50 million bales. crore bales. Gujarat receives 45,000 bales per day, while India receives 1.50 lakh bales per day. Cotton prices have remained stable and reasonable.”
