Up to 63 lakh bales of cotton will be purchased at MSP through early January.
CCI procured 46% of market arrivals in 2024-25 season; prices remain below MSP levels
The State-run Cotton Corporation of India (CCI) has procured about 46 per cent of the total market arrivals of the fibre crop in the 2024-25 marketing season till now. As per the latest data, CCI has procured over 63 lakh bales of kapas (raw cotton), which is close to half of the estimated market arrivals of around 136 lakh bales (170 kg each).
According to data from the trade body Cotton Association of India (CAI), the market arrivals as of Tuesday reached nearly 136 lakh bales.
Regional procurement
According to Lalit Kumar Gupta, Chairman and Managing director of CCI, about 32 lakh bales have been procured in Telangana and 16 lakh bales in Maharashtra so far. In Gujarat, 5 lakh bales have been procured, while in Andhra and Karnataka, the procurement was at 3 lakh bales each.
In Madhya Pradesh, about 2.25 lakh bales have been procured, while in Odisha the cotton purchases stood at 1.25 lakh bales. In Rajasthan, 0.5 lakh bales have been procured, 0.30 lakh bales in Haryana and 0.01 lakh bales in Punjab.
CCI’s purchases have been aggressive over the past few weeks. Till mid-December, CCI purchased 31 lakh bales.
Pricing concerns
Despite the aggressive purchases by CCI, the market prices of raw cotton remain below the minimum support price levels. The kapas prices are in the range of ₹7,100-₹7,200 per quintal in various markets of key producing regions. The Centre had set the MSP of ₹7,121 per quintal for the medium staple and ₹7,521 per quintal for the longer variety for the 2024-25 marketing season.
“Prices of pressed cotton have firmed up by about ₹1,000-1,250 per candy (356 kg) in the past one week. Cotton prices are ruling steady and firm in the range of ₹53,500-54,500 per candy,” said Ramanuj Das Boob, a sourcing agent in Raichur. Also, the firming trend in cottonseed prices is providing support to the cotton prices.
Cottonseed prices have increased by about 10-15 per cent over the past few days to ₹3,400-3,500 range, Das Boob said. This is mainly due to tight supplies.
Das Boob said mills buying of cotton is still slow. “There is no bulk buying from mills,” he said.
Daily arrivals top 2 lakh bales
As per CAI data, daily cotton arrivals are exceeding 2 lakh bales, with the majority coming from Maharashtra and Telangana. Arrivals will likely pick up in Maharashtra, where the marketing season was delayed due to a late harvest and the recent assembly elections, sources said.
In Telangana, a total of over 34.45 lakh bales have arrived so far, of which CCI has procured over 32 lakh bales. In Maharashtra, of the 26.91 lakh bales that have arrived in the market, CCI has procured 16 lakh bales.
Close to half of the estimated crop size of around 300 lakh bales have arrived in the market till the first week of January. The Committee on Cotton Production and Consumption has estimated the 2024-25 crop size to be lower at 299.26 lakh bales of 170 kg each, while the Cotton Association of India has pegged the crop size at 302.25 lakh bales, primarily due to a drop in acreage this kharif season.
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