With CCI having already procured around 5 lakh bales, the target is to procure another 5 lakh bales, officials said. CCI already has some buyers on its list with whom it has reached agreements to sell cotton.
Cotton Corporation of India (CCI) has procured around 5 lakh bales this season of which 4 lakh bales have been procured at Minimum Support Price (MSP) and the remaining 1 lakh bales as part of its commercial operations, senior officials at the CCI said. With cotton prices firming up to around Rs 5,300 per quintal, farmers are finding it more lucrative to sell cotton in the open market. Officials at CCI therefore feel that the intervention of the corporation may not be required for a better part of the season unless arrivals increase and prices fall below MSP.
CCI, however, is likely to continue with its commercial operations during the ongoing season for some of its existing buyers.
With CCI having already procured around 5 lakh bales, the target is to procure another 5 lakh bales, officials said.
CCI already has some buyers on its list with whom it has reached agreements to sell cotton. Cotton prices have firmed up on lesser availability of the commodity owing to the pink bollworm attack.
According to Cotton Association of India (CAI), the crop arrivals in the country up to December 31 have crossed 147.75 lakh bales in this season. By the same time last year, arrivals were about 108 lakh bales.
Since cotton rates have gone up in the country by 10% in the last one month, the earlier set target of cotton export of 63 lakh bales looks difficult now. Hence, cotton export figures have been reduced and revised from the earlier 63 lakh bales to 55 lakh bales, said CAI president Atul Ganatra.
Since cotton price has increased in India, parity to import of cotton has increased so CAI has revised import figures from 17 lakh bales to 20 lakh bales this season.
CAI has estimated the total consumption of cotton during October 1, 2017 to September 30, 2018 of around 320 lakh bales. Due to reduction in export and increase in import, CAI’s carry forward has increased from 39 lakh bales to 50 lakh bales on September 30, 2018, which is a very comfortable position for Indian spinning mills, he said.
Officials at CCI said some one-third of the arrivals have been completed and another two-thirds remain. Farmers are holding on to their crop in anticipation of a better price. Mills are also stocking up on cotton in anticipation of shortage, industry people said.
The Cotton Advisory Board (CAB) has estimated the fibre’s output to increase by 9% to 377 lakh bales (of 170 kg each) despite lower production in Maharashtra and Madhya Pradesh. The output in the northern region is expected to increase 28% to 59 lakh bales from 46 lakh bales earlier on the back of a bumper crop in Rajasthan and Punjab, which is pegged at 22 lakh bales from 16 lakh bales previously and 12 lakh bales from 9 lakh bales earlier.
On the demand side, mill consumption is estimated to be higher at 288 lakh bales from 263 lakh bales earlier — consumption by the small-scale and non-textile industry may increase to 27 lakh bales from 26 lakh bales previously and 19 lakh bales from 17 lakh bales earlier.
Exports are slated to increase to 67 lakh (58 lb) as Pakistan is expected to import from India, Textile Commissioner Kavita Gupta had said. Maharashtra suffered the worst pest attack of Pink Bollworm, especially in Yavatmal and Jalgaon. Other States that were hit are Karnataka, Telangana and Madhya Pradesh During the current cotton season, CCI has opened 348 procurement centres to ensure remunerative prices to farmers.

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