Cotton Procurement & Pricing
Cotton Corporation of India (CCI) procured 100 lakh bales since October 1, 2024.
December 2024 (peak arrival season): CCI purchased 60% of daily arrivals at MSP.
Shankar 6 Cotton Price (March 2025): ₹52,500 per quintal.
Farmer Concerns
Low Yields: Farmers in Telangana report lower cotton yield this season.
High Production Cost vs. Low MSP:
Cost of Production: ₹9,000 per quintal.
MSP: ₹7,235 per quintal.
Market Price (via brokers): ₹5,000 - ₹5,500 per quintal.
Government Intervention
Cotton Mission announced in the February 2025 Union Budget to enhance productivity.
Impact on Textile Industry
Weak International Cotton Prices: Mills find imported cotton cheaper than Indian cotton.
Garment & Textile Exports: Over 60% of India’s garment exports are cotton-based.
Import Benefits for Mills:
Duty-free imports of Extra Long Staple (ELS) cotton.
Exporters can import cotton without duty under Advance Authorisation Scheme.
Cotton Productivity Comparison
India: 450 kg/ha.
Brazil: 1,800 - 2,000 kg/ha.
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