Being world’s second biggest cotton producer and exporter, India has asked the Cotton Corporation of India (CCI) to open more centres in order to raise its procurement operation. As cotton prices have crashed by around a quarter in the last one year, the government has asked CCI to step up cotton purchases from farmers at the benchmark prices.
State-run CCI, under the Textile Ministry, has about 300 procurement centres across the country. It has already started buying cotton at the minimum support price rate in Andhra Pradesh and Telangana.
The CCI has so far procured 250,000 bales, of 170 kg each, in the current marketing year that started on October 1. Most of the purchases were from the southern state of Andhra Pradesh.
Since there have been bulk supplies this year, the country is heading for a big procurement operation at minimum support prices this season. It is expected to harvest a record 40 million bales in the crop year that started on Oct. 1.
