MUMBAI: The Cotton Corporation of India (CCI) has made a record procurement of 94.5 lakh bales of cotton across the country despite the disruption caused by the ongoing lockdown. The figure is higher than last year’s procurement of 10.7 lakh bales and the previous high of 90 lakh bales in 2008. The bulk of the purchase or 86 lakh bales was made before the lockdown began. “The procurement this year is at an all-time high. We have procured 31% of the arrivals of 303 lakh bales worth over Rs 25,000 crore,” said CCI chairperson P Alli Rani.
While government purchase for cotton is alifeline, majority of the farmers depend on the private market, where prices have plunged.The pandemic has shrank both domestic and global demand for India’s cotton. Market prices have plummeted, pushing farmers to sell to the government. The government’s minimum support price for cotton is Rs 5,500 per quintal but market prices range from Rs 2,800 to Rs 4,000 per quintal.
The Cotton Association of India (CAI), which represents the industry, has estimated that domestic demand will drop by 51 lakh bales this year owing to various disruptions.
While government purchase for cotton is alifeline, majority of the farmers depend on the private market, where prices have plunged.The pandemic has shrank both domestic and global demand for India’s cotton. Market prices have plummeted, pushing farmers to sell to the government. The government’s minimum support price for cotton is Rs 5,500 per quintal but market prices range from Rs 2,800 to Rs 4,000 per quintal.
The Cotton Association of India (CAI), which represents the industry, has estimated that domestic demand will drop by 51 lakh bales this year owing to various disruptions.
