CCI gears up for record purchase of 45 lakh quintal cotton

BATHINDA : With a bumper crop likely in Punjab this year, the Cotton Corporation of India (CCI) is gearing up to procure a record 45 lakh quintal cotton, more than double its purchase in the last kharif season.

Sources in the administration and industry say the move will benefit the cotton growers amid the coronavirus outbreak as the central agency will buy the produce on MSP (minimum support price).

CCI assistant general manager and Punjab in-charge Neeraj Kumar said they are in talks with the state government for logistical support for procuring voluminous raw cotton.

“Not only the area under cotton has increased this year but production is also expected to go up. Owing to the pandemic outbreak, private buyers may have a reservation in buying cotton due to the market constraints. Therefore, we are gearing up to buy the entire produce in Punjab this season,” said Kumar.

Of nearly 43 lakh quintal cotton production in Punjab in 2019,, the CCI had purchased 3.5 lakh bales or 17.5 lakh quintal. Rest of the cotton was purchased by private buyers below MSP.

Last year, MSP of ₹5,450 was fixed for per quintal for medium staple varieties in Punjab. Though the central government has announced to enhance MSP by Rs 260 per quintal, a formal notification is likely to be issued before cotton picking begins by the end of September, officials said. Under the direct payment mode to farmers initiated for the first time by the CCI last year, an estimated ₹1,000 crore was paid to cotton growers while bypassing arthiyas or commission agents. There was no major complaint of delayed or insufficient payment by the agency.

Neeraj Kumar said this year too, the agency will continue with direct payment to farmers.

“Our purchase will begin from October 1 and farmers should not rush to the market before that. The farmers should ensure moisture level remains between 8 and 12%. We will follow the strict norms on moisture content for MSP rates,” added Kumar.

Punjab State Agricultural Marketing Board secretary Ravi Bhagat said the state authorities will ensure declaration of any number of places as temporary mandis to facilitate the Cotton Corporation of India in smooth purchase of cotton.