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CCI to ramp up cotton procurement at MSP, prices may rise above last year's

By yash chouhan 2025-11-25 11:44:19
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CCI's cotton procurement at MSP accelerates; prices may exceed last year's levels due to lower prices.

CAI recently estimated the 2025-26 crop at 30.5 million bales (each bale weighing 170 kg), down 2% from last year's 31.24 million bales. 


As cotton arrivals increase, the state-owned Cotton Corporation of India (CCI) has accelerated its procurement of the natural fiber crop at the Minimum Support Price (MSP), with daily purchases surpassing one lakh bales (170 kg). According to trade, arrivals surpassed two lakh bales on Monday.

"Procurement has begun in all cotton-growing states except Odisha. Last Friday, we crossed 1 lakh bales in a day and this season we have crossed nearly 8 lakh in total," said CCI Chairman and Managing Director Lalit Kumar Gupta.


As prices continue to remain bearish - below MSP levels - influenced by the global price trend amidst weak demand, the expectation is that CCI will have to do the heavy lifting through its market intervention buying at MSP. The raw cotton (kapas) prices in the private trade are ruling between ₹6.500 and ₹7,500 per quintal, lower than the the MSP of ₹8,100. 


“The expectation is that our procurement will likely cross last year’s levels because the price gap is wide open,” Gupta said, while adding that the quality issue is more this year. Last year, CCI had procured over 1 crore bales of 170 kg each.

CCI has opened around 570 centres, of which 400 are operational. Every day 15 centres are coming up, he said.

Unseasonal and excess rains had impacted the quality of the cotton crop this year, while the acreages were lower as a section of farmers had switched over to other crops like maize and oilseeds.

“The arrivals are increasing day-by-day and CCI has also started buying in bulk quantity. The prices will stabilise as CCI has started aggressive buying,” said Vinay N Kotak, President, Cotton Association of India (CAI), the apex trade body.

Kotak said the good quality cotton is getting scarce compared to last year because of the unseasonal rains, there is a huge damage to quality. “The quantity damage is smaller, but the quality damage is bigger and because of that the difference between the lower quality and quality will keep widening,” he said.

CAI had recently estimated the 2025-26 crop at 305 lakh bales of 170 kg each, down 2 per cent from previous year’s 312.40 lakh bales.

“Quality is a big issue this year as there’s a lot variation in all the States,” said Ramanuj Das Boob, a sourcing agent from Raichur. “Weak yarn demand has reduced mill buying. Buyers are willing to buy quality cotton at reasonable price, while the big mills have covered their positions opting for imported cotton,” he said. Quality cotton is hovering in the range of ₹50,500-52,000 per candy of 356 kg, while the lower quality produce is around ₹47,500-49,000 levels, he said. 


read more :- Cotton farmers' problems were placed before the Governor.





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