CCI cotton procurement reaches 1 lakh bales daily amid rising arrivals

Cotton procurement by the Cotton Corporation of India (CCI) has gained momentum, with daily purchases crossing one lakh bales of 170 kg as market arrivals gather pace across major cotton-growing States. Total procurement so far has reached roughly eight lakh bales, even though arrivals began later than usual in the current season, which officially started on October 1.

CCI’s buying activity has accelerated in recent days as kapas prices in the private market continue to rule below the minimum support price (MSP). Seed cotton (kapas) is currently trading at nearly ₹7,250–7,500 per quintal in Gujarat, significantly lower than the MSP of ₹8,110 (long staple), widening the gap and increasing the scope for government intervention through MSP operations.

CCI has accelerated procurement as kapas prices remain below the MSP, with daily purchases crossing 1 lakh bales and total procurement reaching around 8 lakh bales.
Arrivals are improving across most states, but quality issues persist due to unseasonal rain, deterring mills from buying.
Weak yarn demand and cautious private trade mean CCI may carry most of this season’s procurement burden.

According to industry sources, arrivals will reach to two lakh bales, and CCI has been procuring across all cotton-growing states except Odisha. Official sources said CCI’s daily procurement has crossed one lakh bales, and the Corporation has purchased approximately eight lakh bales in total this season. Officials expect procurement to surpass last year’s levels, given the persistent price gap and weak demand.

Last year, CCI procured over one crore bales of 170 kg each. For the current season, the Corporation has opened around 570 procurement centres, of which nearly 400 are operational, ensuring wider access for farmers selling cotton below MSP.

However, CCI remained very slow and cautious during the initial days of the current season, as it wanted to avoid lower-quality arrivals. According to market sources, good quality (fair average quality—FAQ) cotton accounts for only about 30 per cent in many states, while the remaining 70 per cent does not meet quality standards. Traders added that CCI took a long time to establish procurement centres as it was waiting for farmers to sell lower-quality kapas in the open market.

Excess and unseasonal rainfall in several states has affected fibre quality, with greater variation reported across regions. Industry veteran and president of the Cotton Association of India (CAI), Vinay N Kotak, noted that while quantity damage is lower, quality damage is significantly higher compared with last year. Good-quality cotton is scarce this season.

Market participants echoed this concern. Traders said weak yarn demand has further reduced mill buying. Buyers are willing to procure quality cotton at reasonable prices, while larger mills have already covered their positions through imported cotton. With private trade remaining subdued and domestic mills buying conservatively, CCI is expected to carry out the bulk of procurement to support farmers against falling market prices.

Fibre2Fashion News Desk (KUL)