Buying has now slowed as cotton prices have risen above support prices

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Mumbai, Ta. Saturday, January 16, 2021

The Cotton Corporation of India (CCI) has almost stopped buying quality raw cotton as the price of cotton is quoted above the support price. Whatever little buying is going on is happening in rural areas, CCI sources said.

The price of cotton is currently hovering around Rs 2,000 per quintal while the support price has been fixed at Rs 4 for good quality.

So far, 210 lakh bales have been collected and it is estimated that farmers have 15-150 lakh bales. CCI has so far completed the procurement of 3 lakh bales in the current season and plans to procure another 8 to 10 lakh bales, CCI sources said.

At the beginning of the season, the target was to buy 100 to 15 lakh bales. As the economy emerges from the effects of the corona, so does the demand for cotton.

Textile mills have also started functioning as per the norms. India's cotton is in high demand in countries like Bangladesh, China and Vietnam.


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