CCI cuts floor prices by ₹600 per candy, third time in past 10 days

CCI, which procured one crore bales at MSP during the 2024-25 marketing season, is still having around 27 lakh bales
| Photo Credit:
REUTERS

Cotton Corporation of India (CCI) on Thursday reduced its floor price by ₹600 per candy (356 kg) after the government announced the extension of the duty-free imports till the year-end. This is the third time that CCI has reduced its prices over the past 10 days.

Trade sources said the State-run entity may be forced to lower the prices further to make its stocks attractive to the mills, which are eyeing to source the cheaper imported fibre crop.

On August 19, when the government removed the import duty on cotton till September end, CCI had announced a correction of prices of ₹600 per candy, followed by another correction of ₹500 the next day. Totally, CCI has reduced its floor price by ₹1,700 per candy over the past 10 days.

Still pricey

“CCI prices are still higher than what the mills are looking for. Also their quality is now from the left out stocks as good cotton is already sold. Looking to the quality what they have they, CCI has to further reduce their price by a minimum of ₹2000 per candy,” said Atul Ganatra, President, Cotton Association of India (CAI), the apex trade body. On Thursday, CCI could sell only 6,000 bales to the mills, an another 2,600 bales were sold to the traders.

CCI, which procured one crore bales at MSP during the 2024-25 marketing season, is still having around 27 lakh bales. Also, they have around 18 lakh bales that are sold but not lifted, Ganatra said.

“CCI may find it difficult to sell their stocks unless they reduce the price. They have to match their price with the imported cotton” said Ramanuj Das Boob, a sourcing agent in Raichur and vice president of All India Cotton Brokers Association. Also, the resellers, who had bought earlier, are selling around ₹500 less than the CCI price, Boob said.

Last week CCI chairman, Lalit Kumar Gupta had told businessline that the state run entity was all geared up for the market intervention for the new season starting October, amidst concerns that domestic prices come under pressure following the removal of import duty. “We are there. We are geared up completely to meet any eventuality of higher operations,” Gupta had said.

Farmers and farmer groups have voiced concerns over the removal of duty, which will hurt their realisations.

Published on August 28, 2025