CCI Extends MSP Procurement Till February-End Amid Delayed Arrivals

• Telangana push leads to extension; arrivals still active in key belts
  
  
• Higher MSP buying lifts CCI stocks; sales pace crucial for ginners and spinning millers
  
  

The Cotton Corporation of India (CCI) has decided to continue cotton procurement at Minimum Support Price (MSP) till the end of February following requests from Telangana, where arrivals were delayed due to staggered picking and extended harvest activity. With kapas still reaching mandis in parts of Telangana and Maharashtra, the extension provides relief to farmers who were concerned about selling below MSP if procurement operations closed earlier.

For the 2025-26 season, MSP is fixed at INR 7,710 per quintal for medium staple and INR 8,110 per quintal for long staple cotton. As open market prices in several centres traded near or below MSP during peak arrivals, CCI procurement remained strong across major producing states including Telangana, Maharashtra, Gujarat, and Karnataka. Till early February, CCI has reportedly procured close to 90 lakh bales this season, approaching last year's level of over 100 lakh bales. This indicates aggressive MSP operations amid comfortable crop arrivals.

On the sales side, CCI has sold around 3.9 lakh bales of the 2025-26 crop through online auctions so far, mainly to mills and traders in Maharashtra and Gujarat, reflecting a relatively slow liquidation pace compared to procurement volumes.

The extension comes at a time when arrivals in some belts were initially delayed due to uneven rainfall and staggered sowing. In Telangana and adjoining regions, picking continued into January and February, leading to continued inflows even after earlier procurement timelines. Farmers had also raised concerns regarding quality-related rejections, particularly for last-picking cotton with slightly higher moisture or contamination levels. The extension ensures MSP support covers these late arrivals and prevents distress sales.

For ginners, sustained CCI buying has absorbed a large share of market arrivals, offering price support during peak supply pressure. However, the relatively modest sales pace means significant stocks are accumulating with CCI. For spinning millers, the availability and pricing of cotton in coming months will largely depend on how aggressively CCI releases stocks through e-auctions. If liquidation remains gradual, open market supply could tighten post-procurement, supporting prices. Conversely, faster stock releases may cap any sharp rally.

Going ahead, once procurement closes after February, the market will transition from farmer-held stocks to CCI-held inventories. Demand from domestic spinning millers and export orders will determine the next price direction. Overall, while the procurement extension provides short-term stability and farmer support, CCI's stock management and auction strategy will be the key driver of cotton price trends in the coming months.