CCI–Ginning Mills Deadlock Leaves Cotton Farmers in Limbo in Guntur
Guntur: Cotton farmers in Guntur are facing uncertainty as the Cotton Corporation of India (CCI) has failed to reach an agreement with ginning mills to operationalize procurement centres for the upcoming season.
Despite extending the tender deadline twice, CCI has not been able to finalize bids, as ginning mill operators have boycotted the process, demanding changes in tender conditions. This ongoing deadlock has created confusion and anxiety among farmers.
Falling Prices Add to Farmer Concerns
With fears of further price decline during the peak arrival season, many farmers are rushing to sell their existing stocks. Cotton prices have already dropped to around ₹6,500–₹7,000 per quintal, even in the off-season, intensifying concerns.
The situation has been further impacted by the government’s temporary removal of import duty, which has weakened domestic market sentiment.
MSP Announced, But Procurement Stalled
Although the government has increased the Minimum Support Price (MSP) to ₹8,110 per quintal and directed CCI to begin procurement, the process remains stalled due to the ongoing disagreement with ginning mills.
CCI had initially planned to finalize tenders by September 1, later extending the deadline to September 25 following protests. However, no mills have participated so far.
Key Demands by Ginning Mills
Ginning mill operators have placed several demands, including:
Region-wise tender allocation
Removal of minimum bid requirements
Equal participation opportunity for all mills
No fixed deadline for farmers to bring cotton stocks
While mills prefer flexible procurement timing for farmers, CCI insists on a structured schedule to ensure proper monitoring and transparency in procurement.
Awaiting Government Intervention
According to sources, CCI has forwarded these demands to the Union Ministry of Commerce and is awaiting further direction. A CCI official stated that allowing unrestricted stock arrivals without a schedule could make monitoring difficult and affect accurate farmer identification.
