Domestic Cotton Output Falls, CCI Revives MSP Procurement in 2024-25 Season

After 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.

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