Cotton procurement in Telangana runs into rough weather with ginning mills boycotting tenders

The state government asked CCI to review some procedural norms, especially those related to lint percentage and the frequency of quality checks.

Published Oct 06, 2025 | 9:00 AMUpdated Oct 06, 2025 | 9:00 AM

Labourers stacking cotton bales on top of a truck

Synopsis: Telangana’s cotton procurement for the 2025–26 season has run into rough weather after ginning mills refused to take part in tenders floated by the Cotton Corporation of India. The mills stated that the new regulatory norms are impractical and cumbersome.

Telangana’s cotton procurement for the 2025–26 season has run into rough weather after ginning mills refused to take part in tenders floated by the Cotton Corporation of India (CCI). This boycott has brought procurement to a standstill. Lakhs of farmers are anxious as harvesting has already begun across the state.

While the CCI issued tenders twice, not a single ginning mill showed interest. The mills stated that the new regulatory norms, including those on lint percentage, L1 (lowest bidder) and L2 (second lowest bidder) allotments, slot booking, and area mapping, are impractical and cumbersome.

The deadlock has left small and marginal farmers vulnerable to distress sales. Market prices are around ₹6,700 per quintal, nearly ₹1,400 below the Minimum Support Price (MSP) of ₹8,110 per quintal for medium-staple cotton.

“There is no question of letting farmers suffer due to procedural delays,” said Agriculture Minister Thummala Nageswara Rao. “The government will not stay silent if anyone tries to exploit them,” he warned.

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Raises the issue with the Centre

In Telangana, cotton has been grown in around 43.29 lakh acres this year with an estimated output of 24.70 lakh quintals. However, heavy rains have already damaged parts of the crop, increasing farmers’ woes as they wait for procurement.

The minister has been closely tracking the issue. He raised the matter with the Union Government after mills refused CCI’s tenders. Acting on his request, state marketing officials met Union government authorities in Delhi on 1 October to discuss procurement hurdles.

“Officials clearly explained to the Centre that some new terms might hamper procurement,” Nageswara Rao said. “After reviewing the situation, the Centre agreed to relax one or two conditions this year while keeping the rest unchanged.”

Despite this relief, the mills are still unwilling to bid. To resolve the standoff, Nageswara Rao directed officials to hold another round of talks between the CCI Managing Director and representatives of ginning mills. The goal is to clear doubts and speed up purchases so procurement can begin without delay.

“I have ordered another meeting with CCI and the millers to sort out all issues,” the minister said. “Procurement must start next week without fail.” This follows multiple attempts to persuade the millers.

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To work in farmers’ interests

The Telangana Cotton Millers and Traders Welfare Association, in its letter dated 20 September, demanded that last season’s system be continued. Although 341 ginning mills operate in Telangana, none have joined the current tender process.

The state government asked CCI to review some procedural norms, especially those related to lint percentage and the frequency of quality checks. After discussions, the Union government reportedly agreed to revise lint percentages every 15 days during procurement to match market conditions.

Meanwhile, the Agriculture Department advised farmers not to sell their cotton to private traders or middlemen. Local committees have been formed to monitor payments, verify farmer details, and handle complaints when the procurement begins.

Nationally, the Textiles Ministry announced that 550 CCI procurement centres will function across 11 states, including Telangana, during the 2025–26 Kharif season. Officials said the ministry is reviewing operational hurdles and will issue clarifications soon.

The minister warned that the government would take strong action if anyone tried to block the process. “Farmers have already suffered from unseasonal rains,” he said. “No one, no matter how powerful, will be allowed to harm their interests.”

(Edited by Muhammed Fazil.)

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