The Cotton Corporation of India (CCI) has started purchase in Andhra Pradesh as market rates are below the minimum support price (MSP).
Chairman and Managing Director of CCI B.K. Mishra told The Hindu on Monday that the corporation had intervened, and was buying at MSP. The new cotton season started in October, and about eight lakh bales of cotton arrived in Andhra Pradesh during the last two months. The CCI had so far covered 40 to 45 per cent of the arrivals in Andhra Pradesh.
Mr. Mishra said cotton kappas had cotton seed and lint. In Andhra Pradesh, the low price for cotton seed brought down the kappa prices. The corporation was prepared for MSP operations this year. In Maharashtra, the prices had improved during the last one week. Another official of the CCI said that Andhra Pradesh normally produced about 60 lakh bales cotton a year, and most of it was long-staple cotton. It was expected to increase to 72 lakh bales this year. The daily arrivals were about 40,000 bales in Andhra Pradesh, and it was expected to go up this month. Thus, the supply was high from the State now.
K.N. Viswanathan, Vice-president of Indian Cotton Federation, said the price for cotton seed had declined by 10to 15 per cent in Andhra Pradesh, Karnataka and Gujarat, because of the fall in demand for cotton seed oil and oil cake.
“We understand this is the trend globally, too.” The rate for cotton seed used to be about Rs.1,900 a quintal, and it was Rs.1,500 now. The fall in cotton seed price would result in the rates increasing for cotton lint.
Published - December 04, 2012 09:48 pm IST
