New Delhi: The Central government on Thursday directed CCI to buy 15,000 bales of the natural fibre from Gujarat on a daily basis.
Textiles Minister Anand Sharma asked the Cotton Corporation of India (CCI) to buy cotton from the state at Rs 4,400 per quintal, an official statement said.
One cotton bale is equal to 170 kilograms.
The move comes amid Gujarat Chief Minister Narendra Modi's reported comments that the Centre "is taxing export of cotton (but is offering) subsidies on meat exports".
Reacting on Modi's comments, Sharma in a late evening statement said it was "completely misleading as on date there is no tax on cotton exports and no subsidy whatsoever is given for meat exports."
"I wish Chief Minister had taken the factual position on board before making such a sensational statement," he added.
On Wednesday, the Textiles Ministry had said the arrivals of cotton and the price situation across major Mandis were being monitored on a "daily basis".
Cotton prices are averaging around Rs 4,000 per quintal and are way above the MSP prices of 3,100 per quintal.
"However, in order to secure the raw material supply lines for the domestic requirements of the textile sector, commercial operations by CCI have become imperative," the Textiles Ministry had said.
The Ministry had directed CCI to intervene in the market for commercial operations to build up reserves of 25 lakh bales till the cotton arrivals in the new cotton season 2012-13.
On April 3, CCI purchased about 11,000 bales at Rs 4,400 per quintal from major mandis across Gujarat.