The Cotton Corporation of India (CCI), a central agency, will start purchasing the produce on minimum support price (MSP) at 14 locations in five districts of the semi-arid region from Wednesday onwards. Bathinda and Muktsar will have a maximum of four centres each, with three in Mansa, while Fazilka will have centres. CCI will open one mandi in Barnala.
CCI only enters the market when the private buyers pay less than the MSP. According to the Punjab Mandi Board data, around 30,000 quintals of cotton had arrived across the south Malwa districts till Tuesday.
Stakeholders said that with the advent of the CCI, the cotton prices may stabilise as the farmers are being paid ₹6,800-7,000 per quintal, which is ₹1,000-1,200 per quintal, less than this season’s MSP.
For the current rabi marketing season, the Centre has fixed ₹7,710 per quintal for medium staple length and ₹8,110 per quintal for the superior quality.
Officials of the state and CCI have attributed the lower rates for unginned cotton (raw crop that still contains seeds) brought to the market by the farmers and high moisture content.
Experts say a decline in the demand by the textile sector in the Indian and global market has destabilised the market, and the entry of the CCI is expected to improve rates in the market.
{{/usCountry}}Experts say a decline in the demand by the textile sector in the Indian and global market has destabilised the market, and the entry of the CCI is expected to improve rates in the market.
{{/usCountry}}New app for seamless procurement
Official sources said the ‘Kapas Kisan’ app, a new mobile application developed by the CCI, has been launched for transparent and seamless procurement of the cash crop. The CCI has extended the registration opportunity till October 31.
The new mobile app empowers farmers with self-registration, slot booking, and payment tracking. “This app provides the facility of payment tracking by farmers - bringing greater transparency, convenience, and speed to the cotton procurement process,” the officials said.
The mandi board data reveals that of the total cotton crop, 46% or 13,000 quintals has been purchased below the MSP.
This year, cotton was sown on 1.19 lakh hectares, and the state agriculture department estimates the produce to be 2.80 lakh bales or 12.45 lakh quintals, said the CCI officials.
However, Indian Cotton Association Limited (ICAL) president Mukul Tayal said that unseasonal rains severely affected the cotton crop.
“As per our estimation, Punjab will produce 1.50 lakh bales or 6.67 quintals of cotton as the rains damaged prospects of a good yield. Cotton is being paid less in the initial stage as the crop brought to market has a moisture content due to untimely rains. We expect that CCI will play an important role in stabilising the downward trend of rates by the private players,” said Tayal.
GFX
Procurement factfile
Cotton arrival (till Sept 29): 30,000 quintals
Purchased by pvt players: 28,000 quintals
Below MSP: 13,000 quintals
District-wise arrivals
Fazilka 16,000 quintals
Bathinda 6,000 quintals
Mansa 5,000 quintals
Muktsar 3,000 quintals
CCI centres
Bathinda 4
Muktsar 4
Mansa 3
Fazilka 2
Barnala 1