CCI intervention gives fillip to cotton prices

A proactive approach by the state government in ensuring the purchase of cotton through the Cotton Corporation of India (CCI) has stemmed the fall in prices at which the “white gold” was being sold by the growers.

Ever since the cotton crop started arriving in the mandis earlier this year, its prices remained below the minimum support price in case of both narma (MSP Rs 7,710) and desi cotton (MSP Rs 8,110). Of the 2,30,423 quintal cotton that has been purchased in the mandis till December 1, 60 per cent (1,40,446 quintals) was sold at below-MSP prices.

In October, when farmers cried foul over the lack of government intervention in the wake of low market prices, the state pressured the CCI to intervene. After it started purchasing cotton, the prices have gone up. The data procured by The Tribune from the Punjab Mandi Board shows that the CCI has procured 35,348 quintal cotton, against 170 quintal procured during the corresponding period last year.

“Till mid-October, the cotton crop was selling at Rs 3,000 to Rs 6,800 per quintal (including desi and narma). After the CCI entry, the prices have started going up. The average price at which narma is selling is above Rs 7,500 per quintal now,” confirmed Rajnish Jain, a commission agent at Maur mandi.

Information obtained from the Punjab Mandi Board confirms that narma is now selling at Rs 7,860 per quintal (MSP of Rs 7,710 per quintal). The prices of desi kapas have also gone up to Rs 7,670 per quintal (MSP Rs 7,710 per quintal). Earlier, the variety was selling at Rs 5,700 a quintal.

Officials in the Agriculture Department said cotton was cultivated on 1.20 lakh hectares this year. “However, the floods and incessant rains damaged the crop on 6,500 hectares. Till date, the market arrivals are almost 1 lakh quintal more than the last year’s figure of 1,20,450 quintal. Since the area under cotton is higher this year than in 2024 (99,600 hectares), the production is also more this year,” said a senior official.

More production despite floods

Officials in the Agriculture Department said cotton was cultivated on 1.20 lakh hectares this year, but floods and rain damaged the crop on 6,500 hectares

To date, the market arrivals are over 1 lakh quintal more than the last year's figure of 1,23,118 quintal

“Since the area under cotton is higher this year than in 2024 (99,600 hectares), the production is also more this year,” said an official