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CCI Steps Up MSP Procurement as Cotton Output Declines in 2024-25

Domestic Cotton Output Falls, CCI Revives MSP Procurement in 2024-25 SeasonAfter a prolonged lull, the Cotton Corporation of India (CCI) has made a strong comeback in procuring cotton under the Minimum Support Price (MSP) mechanism in the 2024-25 season.As per official estimates, domestic cotton production is expected to decline to 294.25 lakh bales (170 kg each), compared to 325.22 lakh bales in the previous 2023-24 season. Despite the drop in output, CCI has procured 99.93 lakh bales as of March 28, 2025, reflecting a significant rise in procurement activity, with the share reaching 33.96%.This marks a notable shift after two consecutive seasons (2021-22 and 2022-23) when no MSP procurement was carried out, even though production remained relatively high at 311.17 lakh and 336.60 lakh bales, respectively.The last major procurement drive was seen in the 2020-21 season, when CCI purchased 99.33 lakh bales out of a total production of 352.48 lakh bales, accounting for 28.18% procurement. In 2019-20, CCI had procured 124.61 lakh bales, which was 19.62% of the total output of 365 lakh bales.With nearly 100 lakh bales procured so far, the 2024-25 season records the second-highest procurement in the last six years. This reflects CCI’s proactive approach to stabilise market prices and provide support to farmers amid declining production.Market experts believe that increased MSP procurement by CCI could help balance supply-demand dynamics and ensure better price realisation for cotton growers.Read More :- Rupee Opens 4 Paise Lower at 85.88 Against Dollar

CCI Cotton Production and Purchases: Last 6 Years

According to data compiled from the cotton seasons 2019-20 to 2024-25, cotton production in the north Indian states of Punjab, Haryana and Rajasthan has seen a significant decline in the last six years.The total cotton production in India is projected to decline from 365 lakh bales in 2019-20 to an estimated 294.25 lakh bales in 2024-25. This represents a decline of about 70.75 lakh bales, underlining the growing concerns in the agriculture sector, especially in the northern region.Northern states hit hardCotton production in Punjab, Haryana and Rajasthan has seen a steep decline:Punjab's production fell from 9.50 lakh bales in 2019-20 to only 2.72 lakh bales in 2024-25.Haryana's production fell from 26.50 lakh bales to 12.44 lakh bales.In Rajasthan, traditionally the leading producer in north India, the procurement declined from 29 lakh bales to 18.45 lakh bales.Various factors such as pest infestation, climatic uncertainties and change in cropping pattern by farmers looking for more profitable or stable options are responsible for this decline.Significant drop in CCI procurementThe Cotton Corporation of India (CCI), which procures cotton under various categories (A, B and C), has also reduced its procurement drastically. In the 2019-20 and 2020-21 seasons, CCI procured significant quantities (up to 10.57 lakh bales in category B in 2020-21), but in the latest season, procurement declined to:0.02 lakh bales (A)0.62 lakh bales (B)0.50 lakh bales (C)No procurement was made by CCI in the 2021-22 and 2022-23 seasons as market prices were higher than MSP.OutlookExperts suggest that unless substantial efforts are made to support cotton growers through improved seeds, pest control and support pricing, this declining trend could threaten the livelihoods of farmers and the textile industry.The government and agricultural bodies are expected to review these trends and introduce policy measures aimed at reviving cotton cultivation in the affected northern states.read more :- Described: An emergency with cotton

Described: An emergency with cotton

Explained: A cotton emergencyThe pink bollworm has brought down India’s cotton production by a quarter in the last decade. While a few seed companies have developed new genetically modified hybrids resistant to the dreaded insect pest, regulatory barriers are coming in the way of their commercialisation.India’s cotton economy isn’t in great shape.This, despite the advantage the country has as a producer of the natural fibre and its textile exports facing only 27% duty – as against China’s 54%, Vietnam’s 46%, Bangladesh’s 37%, Indonesia’s 32% and Sri Lanka’s 44% – under US President Donald Trump’s “reciprocal tariff” policy.The cause for concern is production.India’s cotton output in the 2024-25 marketing year (October-September) is projected at just over 294 lakh bales (lb; 1 lb=170 kg), the lowest since the 290 lb of 2008-09. Production has been on a declining path since the peak of 398 lb in 2013-14 (see chart 1). A fall from almost 400 lb to under 300 lb can even be termed catastrophic.The cultivation of genetically modified (GM) cotton hybrids – incorporating alien genes isolated from a soil bacterium, Bacillus thuringiensis or Bt – had led to not only a near-trebling of production (from 136 lb to 398 lb), but also a 139-fold jump in exports (from 0.8 lb to 117 lb), between 2002-03 and 2013-14.A different bollwormThe above production slide, and India turning from a large cotton exporter to a net importer, is mainly courtesy of the pink bollworm (PBW). This is an insect pest, whose larvae bore into the bolls (fruits) of the cotton plant. The bolls contain seeds from which the white fluffy cotton fibres or lint grow. The PBW caterpillars feed on the developing seeds and the lint, causing yield loss as well as lint discolouration.The GM cotton now grown in India have two Bt genes, ‘cry1Ac’ and ‘cry2Ab’, coding for proteins toxic to the American bollworm, spotted bollworm and cotton leafworm pests. The double-gene hybrids initially provided some protection against the PBW too, but that effectiveness has dissipated over time.The reason for it is that the PBW is a monophagous pest, which feeds exclusively on cotton. This is unlike the other three pests that are polyphagous and survive on multiple host crops: The American bollworm larvae infest even maize, jowar (sorghum), tomato, bhindi (okra), chana (chickpea) and lobia (cowpea).Being monophagous enabled the PBW larvae to gradually build resistance to the toxins from the existing Bt cotton hybrids. The PBW population that became resistant from continuously feeding on these plants eventually overtook and replaced the ones that were susceptible. The pest’s short life cycle (25-35 days from egg laying to adult moth stage), allowing it to complete at least 3-4 generations in a single crop season of 180-270 days, further accelerated the resistance breakdown process.A recent article in the Nature scientific journal showed the PBW developing resistance to both cry1Ac and cry2Ab toxins by 2014, about 12 years after Indian farmers began cultivating Bt cotton.The incidence of the pest crossing the “economic threshold level” – where the value of crop damage exceeds the cost of control – was recorded from 2014 in the central (Maharashtra, Gujarat and Madhya Pradesh), 2017 in south (Telangana, Karnataka, Andhra Pradesh and Tamil Nadu) and 2021 in north (Rajasthan, Haryana and Punjab) growing zones.Not for nothing that all-India per-hectare cotton lint yields, which increased from an average of 302 kg in 2002-03 to 566 kg in 2013-14, have plunged to 436-437 kg during the last two years.Deploying new genesLeading Indian seed companies have developed GM cotton hybrids deploying new genes from Bt, which they claim confer resistance to PBW.The Hyderabad-based Bioseed Research India, a division of DCM Shriram Ltd, is conducting confined field trials of hybrids based on its proprietary ‘BioCotX24A1’ transgenic technology/event expressing the ‘cry8Ea1’ gene found in Bt.The Ministry of Environment’s Genetic Engineering Approval Committee (GEAC) had, in late-July 2024, permitted Bioseed to undertake Biosafety Research Level-1 (BRL-1) trials of its event at six locations in MP, Karnataka and AP. The trials, in isolated plots of not more than one-acre size each, are meant to evaluate the expression of the new alien genes and the agronomic performance of the hybrids/lines into which they are introduced. BRL trials also entail generation of data on food and feed toxicity and environmental safety (residue analysis, pollen flow studies, etc).read more :-Rupee opens 51 paise lower at 85.74 against US dollar

Declining Cotton Production and Procurement by CCI in Punjab, Haryana, and 10 Other States

Cotton production and procurement by CCI is continuously declining in 12 states including Punjab, Haryana and 12 other statesChandigarh: Cotton production and procurement by the Cotton Corporation of India (CCI) is continuously declining in 12 states, including major North Indian states Punjab, Haryana and Rajasthan.From 365 lakh bales (1 bale = 170 kg) in the 2019-20 season, production is expected to decline to 325 lakh bales in 2023-24 and provisionally to 294 lakh bales in the 2024-25 season by March 24, 2025. CCI's cotton procurement also witnessed a sharp decline, dropping from 124.61 lakh bales in 2019-20 to only 32.84 lakh bales in 2023-24, while the provisional figures for 2024-25 are expected to reach only 99.93 lakh bales by March 26, 2025.According to Union Minister of State for Textiles Pabitra Margherita, the reason for CCI's inability to make some procurement is due to cotton prices often being higher than the minimum support price (MSP), as explained in the Rajya Sabha in a written reply to a question by Punjab MP Sandeep Kumar Pathak.According to the minister, the country has produced 365 lakh bales in 2019-20, 352.48 lakh bales in 2020-21, 311.17 lakh bales in 2021-22, 336.60 lakh bales in 2022-23, 325.22 lakh bales in 2023-24 and 294.25 lakh bales in 2024-25 season up to 24th March 2025. Punjab, Haryana and Rajasthan have produced 9.50 lakh bales, 26.50 lakh bales and 29 lakh bales respectively in 2019-20; while it was 10.23 lakh bales, 18.23 lakh bales and 32.07 lakh bales in 2020-21; 6.46 lakh bales, 13.16 lakh bales and 24.81 lakh bales in 2021-22; 4.44 lakh bales, 10.01 lakh bales and 27.74 lakh bales in 2022-23; 6.29 lakh bales, 15.09 lakh bales and 26.22 lakh bales in 2023-24; and 2.72 lakh bales, 12.44 lakh bales and 18.45 lakh bales in 2024-25 season till 24th March. With regard to procurement by CCI, 124.61 lakh bales were procured in 2019-20, 99.33 lakh bales in 2020-21 while no procurement was made in the years 2021-22 and 2022-23. 32.84 lakh bales were procured in 2023-24 while 99.93 lakh bales have been procured in 2024-25 season till 26th March. Specifically, 3.56 lakh bales, 6.22 lakh bales and 3.76 lakh bales were procured by CCI from Punjab, Haryana and Rajasthan, respectively, in 2019-20; 5.36 lakh bales, 10.57 lakh bales and 9.11 lakh bales in 2020-21; no procurement in 2021-22 and 2022-23; 0.38 lakh bales, 0.43 lakh bales and 0.52 lakh bales in 2023-24; and 0.02 lakh bales, 0.62 lakh bales and 0.50 lakh bales in 2024-25 season till March 26.read more :-Farmers Run Out of Cotton, Prices Spike

Farmers Run Out of Cotton, Prices Spike

Cotton Price: Prices rise after farmers run out of cottonWardha News: The prices of cotton have risen across the country due to the decrease in moisture content in the cotton currently coming to the market as compared to the beginning of the season as well as the increase in the price of silk. At present, cotton is trading at Rs 7,000 to Rs 8,000 per quintal.The central government had declared a price of Rs 7121 per quintal for medium-staple cotton and Rs 7521 per quintal for long-staple cotton. However, cotton was not purchased from farmers at this rate throughout the season. On the one hand, the productivity of cotton has declined and it has stabilized at four to five quintals per acre. Cotton producers were in a situation where productivity costs were rising and prices were falling.This does not even include the productivity cost of cotton. This has also affected the cotton cultivation area. Now that the cotton season is in its final stages and farmers have very little stock left, the price of cotton has gone up by Rs 1,000 per quintal. At the beginning of the season, the moisture content in cotton ranges between 10 to 14 per cent. Now it has come down to 6 to 7 per cent. Experts in the field said that the price of sugar has also increased.The market price of sugarcane was Rs 3200 to Rs 3300 per quintal. Now it has increased and it is trading at Rs 3,700 per quintal. As a result of all this, the prices of cotton have gone up. Vinegar is used for oil and it also provides a base during the process. These value-added products are used in food and animal feed. As a result of this boom in the market, the prices of cotton have gone up.Hinganghat (Wardha) Market Committee is famous for cotton. At present, a huge amount of cotton is arriving in this mandi. Ginning traders have to buy cotton by participating in the auction process of the market. Market Committee Secretary Tukaram Chambhare said that farmers come here to sell cotton because the entire transaction is transparent.Currently, 10 to 15 percent of cotton stock is left. The percentage of good quality cotton does not exceed 10. That is why prices have increased. Rates have increased from Rs 7,000 to Rs 8,000.The arrival of good quality cotton in the market has reduced. The price has been revised accordingly. Cotton producers can get good profits only when the area of cotton sowing and productivity decrease in the coming time. Because according to economic theory, demand and supply affect prices.read more :-Weekly Sales Report - Cotton Corporation of India (CCI)

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