Lok Sabha Question No. 78 (UNSTARRED), answered on 2022-02-02
Subject: Price Manipulation by Cotton Corporation of India
Ministry: TEXTILES
Asked by: Chandra Sekhar Bellana, Geetha Viswanath Vanga, Kuruva Gorantla Madhav, Goddeti Madhavi, M V V Satyanarayana

## LOK SABHA UNSTARRED QUESTION NO. 78 TO BE ANSWERED ON 02.02.2022

## PRICE MANIPULATION BY COTTON CORPORATION OF INDIA

78.  SHRI CHANDRA SEKHAR BELLANA: SHRIMATI VANGA GEETHA VISWANATH: SHRI KURUVA GORANTLA MADHAV: SHRIMATI GODDETI MADHAVI: SHRI M.V.V. SATYANARAYANA:

Will the Minister of TEXTILES वस्त्र मंत्री be pleased to state :

- (a) the steps taken by the Government to address concerns regarding the role of Cotton Corporation of India (CCI) in manipulating cotton prices in favour of MNCs, if so, the details of Kapas procurement done by CCI from the State of Andhra Pradesh for the year 2021- 22;
- (b)  whether  purchase  centres  were  set  up  by  CCI  in  the  State  of  Andhra  Pradesh  for  procurement operations of cotton for the year 2021-22; if so, the details thereof and if not, the reasons therefor; and
- (c) whether the Government has taken steps to regulate soaring prices of cotton in the year 2021-22; if so, the details thereof and if not, the reasons therefor?

## उत्तर

## ANSWER

## वस्त्र राज् य मंत्री ( श्रीमती दर्शना जरदोर् )

## THE MINISTER OF STATE FOR TEXTILES (SMT. DARSHANA JARDOSH)

- (a): Cotton Corporation of India (CCI) sells pressed cotton bales only through a robust independent e-auction  portal  managed  by  a  Public  Sector  Undertaking.    The  present  e-auction  system  for  sale  of cotton  by  CCI  is  fool-proof,  transparent  and  buyers'  friendly  and  there  is  no  scope  of  manipulating cotton prices in favour of any buyer segment including MNCs. CCI undertakes cotton procurement, if market  price  falls  below  Minimum  Support  Price  (MSP).  Since,  right  from  the  beginning  of  cotton season 2021-22, the ruling price of raw cotton is above MSP, there has been no requirement for CCI to undertake MSP operation.
- (b): During current cotton season 2021-22 (1.10.2021 to 30.09.2022), CCI has setup 33 procurement centres in 10 districts under its branch office at Guntur in the state of Andhra Pradesh. List of districtwise procurement centres is at annexure-I.
- (c): Ministry is constantly engaged with various stakeholders across the entire cotton value chain in respect of the prices of cotton and cotton yarn to harmonize their interest. Prices are affected by market forces of demand and supply. In addition, cotton being an internationally traded commodity, its price is also affected by the price in the international market.

## List of procurement centres under CCI Branch office Guntur in the state of Andhra Pradesh

|   Sr.No. | Name of District   | Name of centre   |
|----------|--------------------|------------------|
|        1 |                    | Tadikonda        |
|        2 |                    | Guntur           |
|        3 |                    | Guntur-A         |
|        4 |                    | Narasaraopet     |
|        5 |                    | Chilakaluripet   |
|        6 |                    | Pedanandipadu    |
|        7 | Guntur             | Krosur           |
|        8 |                    | Mancherla        |
|        9 |                    | Sattenapalli     |
|       10 |                    | Nadikudi         |
|       11 |                    | Piduguralla      |
|       12 |                    | Phirangipuram    |
|       13 |                    | Adoni            |
|       14 |                    | Nandyal          |
|       15 | Kurnool            | Yemmiganur       |
|       16 |                    | Penchikalpadu    |
|       17 |                    | Parchur          |
|       18 | Prakasam           | Inkollu          |
|       19 |                    | Markapuram       |
|       20 |                    | Nandigama        |
|       21 |                    | Jaggaiahpet      |
|       22 |                    | Kanchikacharla   |
|       23 | Krishna            | Mylavaram        |
|       24 |                    | Gampalagudem     |
|       25 |                    | A.Kondur         |
|       26 |                    | Pittapuram       |
|       27 | East Godavari      | Kirlampudi       |
|       28 | West Godavari      | Jangareddygudem  |
|       29 | Srikakulam         | Rajam            |
|       30 | Vijayanagaram      | Sulur            |
|       31 |                    | Gooty            |
|       32 | Ananthapur         | Tadipatri        |
|       33 | Kadappa            | Proddutur        |