Cotton News: Good news for cotton farmers! Improvement in cotton prices CCI's big decision
Cotton Prices Rise: CCI’s Big Decision Benefits FarmersCotton News:- Cotton Corporation of India (CCI) has purchased cotton in large quantities as cotton prices have been under pressure since the beginning of this year. CCI has so far purchased 1 crore (100 lakh) bales of cotton from across the country, with the highest purchases being made from Telangana.In Telangana alone, 40 lakh bales of cotton, i.e. 40 per cent of the total purchases, have been purchased. After this, 29 lakh bales have been purchased in Maharashtra, 13 lakh bales in Gujarat, 6 lakh bales in Karnataka and 4 lakh bales in Madhya Pradesh. CCI is also involved in purchasing in other states.The central government has announced a guaranteed price of Rs 7,121 per quintal for medium staple cotton and Rs 7,521 per quintal for long staple cotton this year. But the price of cotton in the real market remains lower than the guaranteed price.Cotton rates remain between Rs 6,700 and Rs 7,000 per quintal. Cotton prices have improved by Rs 100 to Rs 200 in the last two-three days, but they are still below the guaranteed price.While many farmers have decided to hold their goods due to low prices in the market, some farmers have preferred to sell cotton to CCI.Bulk purchase from CCIThe market has got support from CCI's heavy purchases. CCI has bought 44 per cent of the total cotton that came to the market this year. Despite the slowdown in international markets, CCI's active purchases did not lead to a major decline in rates in the domestic market. Due to this, the current level of cotton price in the country is stable between Rs 6,700 and Rs 7,000 per quintal.CCI, the country's largest cotton stockist, has now started selling cotton. But cotton prices in CCI auctions are higher than open market rates.Currently, the open market prices of cotton bales are between Rs 52,000 and Rs 54,000 depending on the quality. However, in the CCI auction on March 17, cotton sold between Rs 54,000 and Rs 55,500 per quintal. So far, CCI has sold 2 lakh 8 thousand bales of cotton, out of which mills have bought 94,500 bales and traders have bought 1 lakh 13 thousand bales.Cotton prices in the open market also get support as cotton traders and mills buy at higher rates in CCI auctions. This is likely to provide some relief to farmers, although market prices have still not reached the guaranteed price level. This purchase and sale policy of CCI has helped stabilize the cotton market and prevent a fall in prices.read more :-Indian rupee opens 4 paise higher at 86.40 against US dollar
