Cotton Corporation of India (CCI), which made a record procurement in excess of 107 lakh bales of the fibre crop during 2019-20 season, has managed to liquidate about half its stocks in the past couple of months. The state-run entity, which has rationalised the price beginning September, after its discount scheme ended on August 31, expects sales to pick up ahead of the new harvest season.
Discount structure
“We have sold over 55 lakh bales in the past couple of months. The average discounts have been rationalised in the price itself so that every category of buyer can take advantage of the price, irrespective of the quantity bought,” said CCI Chairman PK Agarwal.
In the earlier scheme, the bulk buyers benefited the most from the discount structure. The rationalised cotton prices are lower by ₹400-1,000 per candy of 356 kg, depending on the quality, length and the location from where it is sold. The prices for September ranged from ₹35,300-37,200 per candy.
“Demand is coming up and we want more mills to participate in the tender process,” Agarwal said. CCI has offered an additional discount of ₹300 per candy for MSME mills. CCI, which has stocks of about 60 lakh bales, expects the carry forward stock to be not more than 10 lakh bales for the next season. “We expect good mills to cover the dry cotton at least up to December,” he said. The monthly consumption by spinning mills is 26-27 lakh bales.