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Cotton Corp of India starts MSP operation in Andhra, Telangana

YarnsandFibers News Bureau 2014-11-07 10:00:00 – Mumbai

The State-run Cotton Corporation of India (CCI) has started procuring cotton at the minimum support price (MSP) in Andhra Pradesh and Telangana to protect farmers. So far, 58,000 bales of cotton have been procured from Andhra Pradesh and Telangana as the market price in these two states have fallen below the MSP rate of Rs 4,050 per quintal

CCI started MSP operation last month. About 55,000 bales of cotton were procured from Adilabad and Warangal region of Telangana, while the rest 3,000 bales from Guntur in Andhra Pradesh, the official said.

The private buyers for long staple cotton in these markets are quoting Rs 3,850-3,950 per quintal as against the MSP of Rs 4,050 a quintal.

A similar price trend is prevailing in some parts of Maharashtra, the country's leading cotton growing state.

Vidarbha farmers are also facing trouble as prices are falling downwards due to leading supplies, amid higher production in the country and the region.

The farmers are worried over the cooperative firm NAFED’s tie up with Maharashtra State Federation for cotton procurement, has decided to buy not more than 25 percent of the total output in its area of operation.

At present, the pace of cotton arrival is slow in major growing states even as production is expected to be higher. The price trend is being closely watched, they would be definitely entering the MSP operations in Maharashtra if prices fall below MSP, according to the Textile Ministry official.

So far this marketing year (October-September) the total arrival were 12 lakh bales so far this marketing year (October-September), much lower than 20 lakh bales in the same period last year, the official data showed.

However, the Cotton Advisory Board has estimated total cotton production at over 40 million bales in the 2014-15 crop year for India. One bale contains 170 kg of cotton.

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