Andhra Pradesh Agriculture Minister K. Lakshminarayana said here on Thursday that cotton production in the State could touch the 70-lakh bale mark this year against 65 lakh bales last year.
He was speaking here after inaugurating the Cotton Corporation of India's tenth purchase centre at the agricultural market yard.
He said the CCI had so far procured 2,40,118 quintals, with Piduguralla recording the highest quantity of 99,199 quintals.
He assured farmers that they would be paid the minimum support price at the CCI centres and they should not resort to distress sale.
He said the CCI would buy the cotton, even if the quality was damaged in the November rains, and there was no need for any panic.
As distress sales are appearing to be imminent, in view of the falling prices, the CCI has issued advertisements in the local papers assuring farmers that it will remain in the market and procure the crop.
“The CCI is ready to procure 50 per cent of the crop in the State and farmers need not worry,” said CCI General Manager S.K Panigrahi.
The CCI, however, was facing the problem of storage space in the ginning mills. “We have started operations in 120 ginning mills, but the storage space is not adequate,” he said.
The average price of cotton is Rs 3,700 a quintal in the open market.
However, there is expected to be some improvement in prices with the late arrivals, as the quality will improve.
The sowing was delayed in Guntur district, particularly in the uplands.
When the crop was ready for harvesting in the first week of November, Nilam cyclone struck, resulting in heavy rains and damage to the crop.