The Cotton Corporation of India (CCI) has begun commercial procurement in Madhya Pradesh, Karnataka and Odisha where prices have fallen following an increase in supplies. 

The National Spot Exchange (NSEL) has started procurement on behalf of National Agricultural Cooperative Marketing Federation of India (Nafed) in Andhra Pradesh. 

However, prices in Gujarat, the country's leading cotton producer, remain firm at Rs 4,100 to Rs 4,200 a quintal, above the minimum support prices of Rs 3,850 a quintal owing to low supplies. Till Wednesday, cotton arrivals across the country was 56.30 lakh bales (of 170 kg each) which was 17 per cent of the targeted arrival of 334 lakh bales for the 2012-13 marketing season. 

In the previous year, total arrival in the corresponding period was 62.81 lakh bales of the targeted 353 lakh bales. "We have started commercial procurement of cotton in Madhya Pradesh, Karnataka and Odisha in the past 10 days and ready to open across other major cotton producing states in the country," said RC Sarkar, chief general manager (marketing), CCI. 

Maharashtra State Cooperative Cotton Growers Marketing Federation and in Andhra Pradesh with NSEL to source cotton. "We have till date procured 13,000 bales cotton, in both states," says SK Verma, GM (cotton), Nafed. 

NSEL targets to procure 15,000 bales cotton worth Rs 500 crore by March 2013 from 18 centres in Andhra Pradesh. It will earn a 2 per cent commission for buying on behalf of Nafed. "Cotton quality is good and procurement is in progress across 7 centres in the state," said Anjani Sinha, MD, NSEL. 

Cotton sales to mill are expected to begin by January-February.