CCI picked up 41 lakh cotton bales from key growing state at MSP this year

State-run Cotton Corporation of India (CCI) to protect farmers from sharp decline in domestic prices has picked up 41 lakh bales of 170 kg each so far this year at the minimum support price ( MSP) from key growing states like Andhra Pradesh, Telangana, Gujarat, Punjab, Haryana, Rajasthan and Maharashtra.

Of which 27 lakh bales of cotton have been purchased from Andhra Pradesh and Telangana, 7,00,000 bales from Maharashtra, 2,20,000 bales from Gujarat and around 2,00,000 bales from Punjab, Haryana and Rajasthan. The procurement operations was started by CCI from October 2014

Cotton prices in domestic market are ruling below support price of Rs 4,050 per quintal for last few months.

The sluggish trend is expected to continue due to poor export demand, especially from China, amid higher local production.

In global markets, cotton prices have fallen substantially since last spring (March-May), when they were above 90 cents per pound to fewer than 70 cents per pound in December, according to the US-based International Cotton Advisory Committee (ICAC).

The contraction in China’s demand for cotton yarn imports is expected to cause India’s cotton consumption growth to slow to 4 percent, reaching 5.3 million tonnes (24.34 million bales).

As per ICAC latest report, it is down from 5 percent in 2013-14 and 14 percent in 2012-13 when demand for Indian yarn exports was much stronger.

India’s production is expected to remain stable at 6.8 million tonnes (31.23 trillion bales) but will surpassing China by over 3,00,000 tonnes (1.37 million bales) making it the largest cotton producer in 2014-14 despite an expansion in the cotton area by 5 percent to 12. 3 million with less favourable monsoon weathe as per ICAC estimates.

While, the government’ Cotton Advisory Board has pegged the total cotton production at over 40 million bales in 2014-15 marketing year. 2013-14.