According to statistics, as of December 8, 2020, CCI has purchased 4,152,628 bales of cotton (equivalent to 706,000 tons), accounting for approximately 11.66% of India’s total cotton production in 2020/21 (CAI’s latest forecast of India’s cotton production this year Still 35.6 million bales) with an amount of Rs. 121,508.4 crore.
Currently, CCI’s acquisitions are concentrated in Punjab, Haryana, Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Telangana, Andhra Pradesh, Odisha and Karachi. Nataka and other 10 main producing areas. However, according to feedback from cotton processing companies and cotton exporters in Maharashtra, Gujarat and other places, since late November, Indian cotton farmers’ enthusiasm for selling seed cotton to CCI has shown signs of continued decline and cooling, and the growth rate of CCI purchases has also increased. However, the purchase and processing of cotton by private cotton companies has gradually and effectively started, and the operation of “stealing food from the tiger’s mouth” by CCI has increased. Some private cotton companies have gone to cotton fields and farmers’ homes to purchase, so as to solve the farmers’ worries about transportation and payment collection.
There are several reasons for the slowdown in CCI’s MSP price acquisition:
First, the Indian Union House has passed three new agricultural bills, which has caused trouble, and farmers in northern states have been particularly fierce in their resistance. The Modi government hopes to pass the new agricultural bill to improve the marketization level of agricultural production and sales, so that the state will fade out of its role as the main channel for purchasing agricultural products and instead allow farmers to trade directly with companies. However, once the government’s “bottom cover” operating model is cancelled, and the “minimum purchase price” is broken, farmers will be at an obvious disadvantage in transactions with private companies, traders, supermarkets, etc.;
Second, with the sales of ICE, MCX and CCI The floor price continues to rise, and the spot prices of domestic seed cotton and lint cotton in India have also risen again and again. Private ginners and cotton companies have also had to continuously increase the purchase price of seed cotton, and the price difference with MSP has narrowed significantly; coupled with the private The company’s acquisition, pricing, and inspection are relatively flexible and provide farmers with benefits as much as possible. Therefore, the diversion of Indian cotton resources has intensified;
Third, in addition to relaxing the acquisition standards for Telangana (mainly due to frequent rainfall in October), the CCI As a result, the moisture content of seed cotton mostly exceeds 12%I), and the procurement standards for seed cotton in Gujarat, Punjab, Maharashtra and other places have not been relaxed accordingly, causing strong dissatisfaction among farmers and planters;
Fourth, India in December The volume of new cotton on the market continues to increase significantly, but CCI has to actively “press the brakes” due to the spread of the epidemic, the slowdown in lint exports, the appreciation of the rupee against the US dollar, and capital flow issues. Farmers have limited storage conditions and greater cash flow pressure. Under the premise, seed cotton can only be sold to private companies to reduce risks. </p
