Production of Cotton has picked up in large scale in all the major cultivation centres, and the Cotton Corporation of India (CCI) has started purchasing where the market price has equalled the minimum support price (MSP).
In the 2014-2015, CCI had purchased 8.6 million bales, and its involvement in the market was not much as prices were high. This year, it has got the approval of the government to go up to 10 million bales. If prices stabilise and the need for MSP operations decline, CCI might purchase less than 10 million bales.
At present CCI is purchasing 15,000 bales every day, “The plan is to buy 10 million bales this year at both MSP and through commercial purchase.” said CCI director M.M. Chokkalingam.
Currently the arrival are 0.1 million bales every day, prices are already down and may drop further when the arrival reach 0.25 million per day.