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Related Keywords: 41 lakh cotton bales, Cotton Advisory Board, cotton corporation of India, decline in domestic price, ICAC, MSP

State-run Cotton Corporation of India (CCI) to protect farmers from sharp decline in domestic prices has picked up 41 lakh bales of 170 kg each so far this year at the minimum support price ( MSP) from key growing states like Andhra Pradesh, Telangana, Gujarat, Punjab, Haryana, Rajasthan and Maharashtra.

Of which 27 lakh bales of cotton have been purchased from Andhra Pradesh and Telangana, 7,00,000 bales from Maharashtra, 2,20,000 bales from Gujarat and around 2,00,000 bales from Punjab, Haryana and Rajasthan. The procurement operations was started by CCI from October 2014

Related Keywords: cotton farmers, cotton prices, cotton trading activity, demand for export, domestic mill, Ginners, Gujarat Sankar-6 cotton, Indian cotton market, kapas, MSP, Rajkot

Weak cotton trading activity was witnessed at Rajkot, Gujarat as cotton prices remained unchanged and domestic mills were buying only as per their requirements as demand for export was seen dull.

Kapas or raw cotton declined marginally on lower buying from ginners. Gujarat Sankar-6 cotton was traded at ₹33,100-200 per candy of 356 kg.

About 45,000-50,000 bales (of 170 kg) arrived in Gujarat and 2.10-2.15 lakh bales arrived in India. Kapas lost ₹5 to ₹830-850 for a maund of 20 kg. Gin delivery kapas stood at ₹855-860. Cottonseed went for ₹355-370.

Related Keywords: Cotton Association of India, cotton corporation of India, Cotton Yield, Gujarat state cotton, India cotton output, MSP, MSP operation, procurment, total cotton crop

India’s cotton yield has recorded a drop in output at 40.2 million bales (170 kgs each in 1 bale) in November during 2014-15, while during the same period last year, total cotton crop stood at 40.7 million bales according the Cotton Association of India (CAI).

The projected balance sheet drawn for the year 2014-15 estimates total cotton supply at 47.39 million bales while domestic consumption is estimated at 30.60 million bales thus leaving an available surplus of 16.79 million bales, said CAI.

Related Keywords: bumper harvest, cotton, cotton corporation of India, cotton farmers, cotton prices plunge, Gujarat and Maharashtra, increase purchase, long staple cotton, medium staple cotton, MSP, procurement operation, Textiles Minister Santosh Gangwar

The government on Wednesday has directed the Cotton Corporation of India to increase its purchase from the major producers, including Gujarat and Maharashtra as cotton prices have plunged below the minimum support price fixed by the Centre due to an expected bumper harvest.
Prices have also slumped below the MSP in many places because of weak global markets , which has stopped exports.

Related Keywords: cotton production, cotton textile sector, MSP

India having good monsoon this year, marginal improvement in acreage as well as the yield, coupled with an announced hike in the Minimum Support Purchase Price (MSP), research firm CARE Research expects to see improvement in the India's cotton production.

A good monsoon accelerates sowing which is conducive for the overall increase in cotton production as majority of India's cotton area is rain-fed, the report said.

The country's cotton production is expected to be around 378.75 lakh bales, while consumption is likely to be around 300 lakh bales this year.