Indore: The Cotton Corporation of India (CCI), a government entity operating under the Ministry of Textile, has successfully secured approximately 6.35 lakh quintals of cotton from various markets in Madhya Pradesh during the ongoing season. This significant procurement marks a strategic move by CCI to stabilise cotton prices and provide support to the local farmers in the region.
According to an official from CCI speaking on the condition of anonymity, the procurement process continued until February when market conditions showed signs of improvement. The decision to discontinue further procurement was a response to the evolving market dynamics and favourable price trends.
To facilitate the procurement process, CCI established 21 procurement centres across Madhya Pradesh in response to the declining prices observed across different markets nationwide. The government had set the Minimum Support Price (MSP) for medium staple cotton at Rs 6,620 per quintal and long-staple cotton at Rs 7,020 per quintal, incentivizing farmers to engage in cotton cultivation.
Last season, CCI refrained from procurement activities as cotton prices exceeded the MSP, signalling a healthy market scenario. However, the current season saw a reversal of this trend with cotton arrivals witnessing a decline in spot markets. Industry experts predict a further decrease in cotton arrivals in the upcoming weeks, attributing the shift to changing demand dynamics and global trends.
The demand for cotton from textile mills has surged, leading to increased production capacity utilisation in the sector. As a result, the Cotton Association of India has projected a decline in cotton output in Madhya Pradesh, estimating a production of 18 lakh bales compared to 19 lakh bales in the previous year.
Looking ahead, the trade body aims to boost cotton exports for the fiscal year 2023-24, setting a target of 14 lakh bales. This strategic focus on exports aligns with the broader goal of enhancing the competitiveness of Indian cotton in the global market and fostering sustainable growth in the textile industry.
In conclusion, the proactive measures taken by CCI to procure cotton in Madhya Pradesh reflect a strategic approach to support farmers, stabilise market prices, and promote sustainable cotton cultivation practices in the region. As the industry adapts to changing market dynamics, collaborations between government agencies, trade bodies, and industry stakeholders will play a crucial role in shaping the future of the cotton sector in India.
