India's CCI buys 2 lakh cotton bales, Kapas nears MSP

India's cotton trading company, Cotton Corporation of India (CCI), has bought two hundred thousand bales of 170 kg cotton at the minimum support price (MSP) so far this season. Due to a global slowdown in the textile sector, cotton prices are close to the MSP in most mandis across various producing states. The cotton marketing season in India runs from October to September. 

According to industry sources, CCI is active in nine states, purchasing raw cotton from farmers. The corporation is buying unginned cotton (Kapas) at ₹6,620 per quintal for medium staple and ₹7,020 per quintal for long staple. In many states, prices for unginned cotton have dropped to ₹6,500-7,000 per quintal for medium staple and ₹7,000-7,300 per quintal for long staple. 

Traders note that CCI is selectively buying cotton, resulting in minimal purchases during the first two months of the season. However, this modest quantity sends a strong message to the market, helping to prevent prices from falling below the MSP. 

India's daily cotton arrivals have surpassed 1 lakh bales. In Gujarat, Shankar-6 cotton prices are around ₹55,800-56,200 per candy of 356 kg, while medium staple cotton is priced at ₹5,400-5,500 per maund of 37.2 kg in north India. Spinning mills are cautious about new purchases due to uncertainties in demand from the downstream industry. 

Fibre2Fashion News Desk (KUL)