Cotton Corp, Nafed may buy cotton at MSP

Cotton Corp of India and National Agricultural Cooperative Marketing Federation may buy cotton from farmers in Gujarat at minimum support price, officials in the state's agriculture department said.

"In the wake of the state being poised for a bumper cotton production this season (June-January) we have initiated detailed discussion with CCI and Nafed to lift the excess volumes from the market at Rs 2,005 per quintal MSP," Abhay Raval, spokesperson for the department said.

However, he clarified that fresh season cotton is already selling at a higher price band of Rs 2,135-2,275 per quintal in various markets in Saurashtra.

CCI and Nafed have identified 88 centres all over Gujarat to procure cotton at MSP, if the situation arises after Diwali, the official said. Huge volumes of fresh cotton are expected in markets after the festival, he said.

State Agriculture Minister Bhupendrasinh Chudasma held a detailed meeting with the officials of CCI and Nafed over a possible glut situation in the market in the event of an estimated 11 million bales production in Gujarat.