CCI cuts cotton price on low demand 3 days

Cotton Corporation of India (CCI), the government cotton procurement agency, has reduced the sale price of the Sankar-6 variety of cotton.

The corporation has brought down the price of this variety by around Rs 400 per candy in the past two-three days. Of this, it reduced prices by Rs 200 today itself.

Currently, it is selling this variety at Rs 23,100 per candy from Rs 23,500 a week back. However, it may be mentioned here that CCI also gives discounts on cotton purchases.

“We have reduced prices as the demand from domestic mills has gone down. Further, cotton merchants have also cut prices,” said Subhash Grover, MD, Cotton Corporation of India.

“Currently, cotton mills have stocks to last up to four months. As a result, they have slowed down purchases, forcing CCI to reduce prices,” said Arun Dalal, owner of an Ahmedabad-based cotton trading firm.

Out of the total 88 lakh bales procured, CCI had sold 61 lakh bales by the first week of April. The government agency has purchased large amount of the Sankar-6 variety from farmers.