No procurement yet for new season

While Maharastra will review the incentive proposal for cotton growers after civic polls, the Cotton Corporation of India (CCI) has not yet started procurement for this season. With November already over, it is now in a a wait and watch mode on prices, which could delay procurement further.

“Both international and domestic prices are falling everyday. But, the domestic price is ruling over the minimum support price (MSP). Last year we procured cotton at record prices and it was to benefit farmers. This year as well, we would wait for market prices to stabilise for procurement to start, which will never be below the MSP. There is no reason for us to procure at high prices,” said an official source.

 

“Growers are also not liquidating their positions and are artificially holding their stock, expecting hectare-wise incentive. Also, exporters are not selling till they get a firm order from a buyer, as international demand is not very encouraging. Thus, the supply is piling up and there is no reason why CCI should procure at higher prices,” said the source.

Cotton procurement usually starts in November when the moisture level in the crop subsides.