Increase in cotton supply in the spot markets amid decline in buying from textile mills has pushed down the prices of new season cotton, leading to increased buying by the Cotton Corporation of India (CCI).
Cotton traders said the daily arrival of cotton in the spot markets of Madhya Pradesh is estimated at 40,000 quintals, of which more than 60 percent is procured by CCI.
Kailash Aggarwal, a cotton farmer and owner of ginning units in Khargone, said, “This is the peak season when mills buy cotton in bulk, but this time the demand has gone down and this has left ginners with huge stocks. “Supply is abundant in spot markets but buyers are few.”
Traders said, CCI has started procurement since last one month, but it has increased in last one week amid surge in arrival of farmers.
Most of the quality produce is purchased by CCI from farmers at minimum support price, he said. Traders said the decline in demand for cotton has increased the concerns of farmers and ginners. Traders said cotton was trading at Rs 54,000 per candy in the spot markets of MP, while in October it was Rs 62,000 to Rs 63,000 per candy.
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