Cotton Corporation of India (CCI), the nodal government agency for procuring cotton in the country, has procured a record 4 million bales so far this year. CCI's cotton procurement in 2008-09 is four times higher than that seen last year. The aggressive buying by CCI has already sent shivers down the spines of exporters, ginners and textile industry players.
The increased buying of cotton by CCI at the Minimum Support Price, raised by 40 per cent this year, has ensured cotton prices did not fall. The industry, already resisting high support prices, are now feeling the heat as CCI's aggressive buying is affecting their plans to procure cotton from the market. Farmers are not offloading their holding in the markets as they expect the prices to surge further. This has further added to the woes of textile, ginning and other allied industries.Around 11.8 million cotton bales (1 bale=170 kg) have arrived in various markets across the country as on December 24.
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