Cotton Procurement Resumes in Telangana Following Government Mediation with CCI
In an effort to prevent unrest among cotton farmers and industry stakeholders, the Telangana State government successfully mediated between the Cotton Corporation of India (CCI) and the state’s ginning mills. After days of stalled cotton procurement and growing discontent among farmers, the CCI agreed on Monday to ease its recent regulatory measures, allowing purchases to resume across the state.
The standoff began as ginning mills, burdened by new CCI regulations, halted purchases, leading farmers to protest the sudden stoppage at procurement centers. The situation reached a tipping point when farmers voiced concerns over being offered rates far below the Minimum Support Price (MSP) of ₹7,521 per quintal, despite Telangana cotton being among the finest quality in the country. The discrepancy, amounting to a reduction of ₹1,000–₹1,500 per quintal, further strained relations between the CCI, ginning mills, and the farming community.
On Monday, the Telangana government convened a meeting between CCI Managing Director Lalit Kumar Gupta, representatives from the Telangana Cotton Association, and the Telangana Ginning Mills Association. The talks addressed key issues, including pricing disputes and regulatory changes that introduced stricter grading measures. The CCI had categorized mills into three tiers—L-1, L-2, and L-3—based on performance, with each category facing different purchasing restrictions, particularly related to moisture content levels. The CCI’s stringent measures were perceived as financially burdensome by the mills, with CCI initially offering ₹1,345 per cotton bale against the requested ₹1,495, citing excess moisture content as the reason for the lower price.
Thanks to government intervention, an agreement was reached wherein the CCI committed to temporarily relax these purchasing criteria, allowing for an immediate resumption of cotton procurement. In return, the ginning mills agreed to resume operations, ensuring farmers could sell their produce without further delay. The Telangana Cotton Association and the Ginning Mills Association, while satisfied with the immediate outcome, urged the CCI to continue to evaluate and adjust their policies to better accommodate the needs of Telangana’s cotton industry.
The government’s quick response and mediation have brought temporary relief to the industry, and detailed guidelines on the new terms are expected from CCI in the coming days. This resolution reflects the state’s commitment to safeguarding both farmers’ interests and the viability of the cotton processing industry in Telangana.
