The Cotton Corporation of India (CCI) has made significant strides in its cotton procurement efforts for the 2024-25 marketing season, surpassing expectations and bolstering support for the domestic textile industry. As of mid-December, CCI had already acquired over 31 lakh bales of cotton at the Minimum Support Price (MSP), representing a substantial portion of the market arrivals.
This robust procurement drive, spearheaded by CCI across all cotton-producing states, has been particularly strong in Telangana and Maharashtra. Telangana, in particular, has witnessed a substantial influx of cotton into CCI’s procurement centres, exceeding 19.94 lakh bales.
Supporting Farmers Amidst Market Challenges
The strong procurement by CCI comes at a crucial time for cotton farmers. Raw cotton prices have been hovering below MSP levels due to weak demand from yarn mills and a bearish trend in cottonseed prices. This intervention by CCI provides much-needed support to farmers, ensuring they receive a fair price for their produce.
CCI Poised to Exceed Last Year’s Procurement
With the current pace of procurement, CCI is poised to significantly surpass its previous year’s figures. In the 2023-24 season, CCI procured 33 lakh bales. However, for the current season, CCI anticipates procurement to range between 50-70 lakh bales, a substantial increase driven by the strong market support and the need to stabilize cotton prices.
Impact on the Textile Industry
CCI’s proactive procurement efforts have significant implications for the Indian textile industry. By ensuring a steady supply of cotton at a fair price, CCI strengthens the raw material base for domestic textile manufacturers. This can enhance the competitiveness of the Indian textile industry both domestically and in the global market.
Looking Ahead
As the 2024-25 cotton season progresses, CCI will continue to play a crucial role in supporting cotton farmers and stabilizing the market. The strong early procurement figures indicate a robust commitment to the Indian cotton sector and bode well for the future of the domestic textile industry.
Key Takeaways:
- CCI’s cotton procurement for the 2024-25 season has exceeded expectations.
- Strong procurement in Telangana and Maharashtra has been a key driver.
- CCI’s intervention provides crucial support to farmers facing price challenges.
- The robust procurement is expected to benefit the Indian textile industry by ensuring a steady supply of raw materials.
