Domestic Cotton Production and CCI MSP Procurement (Last 6 Seasons)

After a significant pause, the Cotton Corporation of India (CCI) has made a significant return to procurement under the Minimum Support Price (MSP) mechanism for the 2024-25 cotton season.

According to official data, domestic cotton production is expected to decline to 294.25 lakh bales (each weighing 170 kg) in the current 2024-25 season, down from 325.22 lakh bales in 2023-24. Despite the fall in production, CCI has made substantial procurement of 99.93 lakh bales till March 28, 2025 – marking a sharp increase of 33.96% in procurement percentage.

This marks the return of significant procurement activity after two consecutive years of inactivity. In both the 2021-22 and 2022-23 seasons, despite domestic production being 311.17 lakh and 336.60 lakh bales, respectively, CCI did not make any procurement under MSP.

The last big procurement was witnessed during the 2020-21 season, when CCI had bought 99.33 lakh bales out of 352.48 lakh bales produced, with a procurement percentage of 28.18%. In 2019-20, the corporation had bought 124.61 lakh bales, which was 19.62% of the total production of 365 lakh bales.

The current procurement figure for 2024-25 is the second highest in the last six years, indicating a proactive approach by CCI in stabilising cotton prices and supporting farmers amid lower production forecasts.

Experts believe that this fresh procurement effort may help maintain balance in the market and ensure fair prices for cotton growers.

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