The Cotton Corporation of India (CCI) has asked farmers not to resort to any distress sale of their produce even as prices are ruling around Minimum Support Price (MSP) levels. It assured that it will purchase all of the produce that is brought to the designated CCI yards.
Trade sources said the bulk of purchases, up to 80 per cent, are being handled by the CCI, with traders involving in purchase of smaller lots. For example, traders purchased 630 quintals of cotton, while the CCI purchased 6,837 quintals at the Warangal Market Yard on Monday.
“CCI assures all the cotton farmers of the States that it will continue to procure all fair grade cotton till last arrival. The farmers need not make any distress sale of their produce,” the Chief General Manager (Marketing) of CCI, said in a communication to farmers.
Increase in MSP
L K Gupta, Chairman and Managing Director of CCI, told businesline that the corporation has so far procured 86 lakh bales of cotton across the country.
The 86 lakh bales procured this season are significantly higher than the 32.84 lakh bales procured during the entire last season. The farmer’s MSP was increased by 7.5 per cent. Prices for lint cotton were at or even below last year’s levels but seed cotton prices have increased by 7.5 per cent compared to last year. “This increase in MSP has increased our role in supporting the country’s cotton farmers,” Gupta said.
