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Govt stops cotton procurement after 8 lakh bales
16 Feb '16
2 min read
The Cotton Corporation of India (CCI) which has purchased 8 lakh bales of cotton so far in the 2015-16 marketing year, has decided that it won't to buy any more as domestic prices have firmed up slightly after demand from Pakistan.
Last year, the state-run CCI had procured 87 lakh bales of cotton. The cotton marketing year runs from October to September.
"We have procured 8 lakh bales at the minimum support price (MSP) so far in 2015-16. No further procurement would take place as prices have started increasing," CCI Chairman and Managing Director B K Mishra told PTI.
The cotton has been purchased mainly from Andhra Pradesh, Telangana. A smaller quantity was purchased from Maharasthra, he said.
The government's cotton procurement was expected to be higher than 8 lakh bales due to sluggish demand from China. But increase in shipments to Pakistan as well as announcement of bonus, over and above MSP, to cotton growers in Gujarat have supported domestic prices to rise.
Mishra said India has already exported 40 lakh bales of cotton so far this year, of which 20 lakh bales were shipped to Pakistan. India had exported 67 lakh bales in the entire 2014-15 marketing year.
India's cotton output is expected to fall this year on back of a pest attack and drought.
The government's Cotton Advisory Board has pegged the country's total cotton production to decline to 352 lakh bales in 2015-16 from 380 lakh bales last year. (SH)
Last year, the state-run CCI had procured 87 lakh bales of cotton. The cotton marketing year runs from October to September.
"We have procured 8 lakh bales at the minimum support price (MSP) so far in 2015-16. No further procurement would take place as prices have started increasing," CCI Chairman and Managing Director B K Mishra told PTI.
The cotton has been purchased mainly from Andhra Pradesh, Telangana. A smaller quantity was purchased from Maharasthra, he said.
The government's cotton procurement was expected to be higher than 8 lakh bales due to sluggish demand from China. But increase in shipments to Pakistan as well as announcement of bonus, over and above MSP, to cotton growers in Gujarat have supported domestic prices to rise.
Mishra said India has already exported 40 lakh bales of cotton so far this year, of which 20 lakh bales were shipped to Pakistan. India had exported 67 lakh bales in the entire 2014-15 marketing year.
India's cotton output is expected to fall this year on back of a pest attack and drought.
The government's Cotton Advisory Board has pegged the country's total cotton production to decline to 352 lakh bales in 2015-16 from 380 lakh bales last year. (SH)
Fibre2Fashion News Desk – India
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