Jan 19, 2025,
Indore: Cotton procurement in Madhya Pradesh by the Cotton Corporation of India (CCI), a nodal agency established under the Ministry of Textile for the procurement of cotton, has reached 12 lakh quintals, already double the previous year's procurement. In the preceding year, the nodal agency procured 6.35 lakh quintals of cotton from Madhya Pradesh. CCI started the procurement of cotton from farmers in Madhya Pradesh at the Minimum Support Price (MSP) from October 2024.
The nodal agency has set up 21 procurement centres in the state. "So far, around 12 lakh quintals of cotton are procured in MP by CCI. Almost every centre is operational because arrivals were high in the initial months. Though initial supplies had higher moisture content, gradually the quality improved, and supplies are sufficient," said an official from CCI requesting anonymity.
The 2024-2025 MSP for cotton stands at Rs 7,121 per quintal and Rs 7,521 per quintal for medium and long-staple cotton varieties, respectively. The CCI has established procurement centres at Khargone, Dhamnod, Bikangaon, Badwah, Khandwa, and other locations. In the Indore division, Khargone, Khandwa, Barwani, Manawar, Dhar, Ratlam, and Dewas are the prominent cotton-growing belts.
Kailash Agrawal, a cotton trader and farmer, said, "Cotton procurement is high this season because production and per hectare yield was very good. Unlike previous years, farmers were interested in releasing the stocks early to get better remuneration, so most of them sold their supplies at the start of the season." Traders said almost 80 per cent of cotton supplies reaching the markets were procured by CCI this season because prices were lower than the MSP.
Another trader, Hari Kishore, said cotton prices have not gone above Rs 8,000 per quintal in the past three years, and looking at past years' experience, it was wiser to clear the stocks as early as possible to get at least the MSP. The daily arrival of cotton in the Khargone market is estimated at 10,000-15,000 quintals compared to 8,000- 10,000 quintals in the preceding year during the same period, said cotton traders. (Source: Times of India)