Cotton Corporation of India (CCI) is likely to acquire no more than 3 million bales in 2021/2022 compared to 9.2 million bales acquired in 2020/2021 as Indian seed cotton prices are likely to be above the minimum support price for most of the next year, the head of CCI said recently.

According to an analysis by CCI, strong domestic cotton demand, depleted cotton stocks and the imposition of 10 percent import duty on cotton have caused cotton prices to rise in the early part of the year. Although the cotton planting area in India decreased by 6-8 percent in 2020, cotton production remained high at 35-36 million bales (170 kg each) due to good rainfall.

 

The data showed that India started 2020/2021 with 12 million bales in stock, 37.1 million bales in production, 1.1 million bales in imports and 50.2 million bales in total supply. The initial inventory for 2021/2022 is likely to be 6 million to 7 million bales. The head of CCI said that companies would enter the market in 2021-2022 to ensure farmers are not affected, but intervention may only be required in December when peak harvest prices are likely to fall below the minimum purchase price of cotton, possibly for a short period of 15 to 20 days with purchases of no more than 3 million bales.