Cotton Corp starts buying at MSP in Andhra, Telangana

With cotton prices ruling below the minimum support price (MSP), state-run Cotton Corporation of India (CCI) has started procuring cotton at the MSP in Andhra Pradesh and Telangana to protect farmers.
"CCI started MSP operation last month. 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," a senior Textile Ministry official told PTI.
About 55,000 bales of cotton was 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, the official added.
A similar price trend is prevailing in some parts of Maharashtra, the country's leading cotton growing state.
"Amid higher production in the country and the region, farmers in Vidarbha are facing trouble as prices are falling downwards due to leading supplies," a farm research and consulting body Agriwatch said in its weekly report.

Adding to the farmers' worries is cooperative firm NAFED, which has tied up with Maharashtra State Federation for cotton procurement, has decided to buy not more than 25 per cent of the total output in its area of operation, it said.

Asked if CCI will start MSP operations in Maharashtra, the Textile Ministry official said, "We are watching the price trend. If prices fall below MSP, we will definitely enter."
Currently, the pace of cotton arrival is slow in major growing states even as production is expected to be higher.
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.
Cotton Advisory Board has pegged the country's total cotton production at over 40 million bales in the 2014-15 crop year, as against 39.8 million bales in 2013-14. One bale contains 170 kg of cotton.