CCI gives a prop to V-797 cotton, buys 22,000 quintal

Even as the prices of the V-797 variety of cotton crashed below the level of minimum support price, the Gujarat branch of the Cotton Corporation of India (CCI) has stepped in to give a prop to the commodity.

Sources in the CCI said that the corporation has so far picked up over 22,000 quintal of the V-797 variety of cotton from farmers in Gujarat, who were being forced to sell cotton at lower prices because of a bumper crop.

CCI started the purchase since the last week of April and bought around 5000 quintals last week alone. The CCI has fixed the minimum support price level of V-797 variety of cotton at Rs 1,640 per quintal.

"We have been opening up new purchasing centres as and when the need arises. CCI will continue to purchase cotton at support price levels from farmers in a bid to ensure that they get a fair price. I believe the operations could last for at least a fortnight more," said S K Suri, branch manager, Gujarat, Cotton Corporation of India. He added that eight purchasing centres have been opened up so far.

Till April last week, the prices of the V-797 variety of cotton were above the minimum support price.

V-797 is one of the major cotton varieties grown in Gujarat with the Shankar-6 being the other variety grown on a large scale. Although the V-797 variety started arriving in the market from February, its prices fell below the support price level on April 27, Suri said.

He added at present purchase operations were on at Lakhtar, Dhrangadhra and Dhandhuka.

"As and when the prices of this variety goes lower than the minimum support prices at any centre in the state, CCI will set up purchasing centres," Suri stated.

Earlier, the Gujarat branch of the CCI had also intervened and carried out purchasing operations for the Shankar-6 variety of cotton, when its price fell below the minimum support price.