The Cotton Corporation of India (CCI) has lined up funds worth Rs 9,000 crore for procuring cotton in the current season (October 2008-September 2009). The government-owned procurement agency is set to procure over 10 million bales in the current season – becoming the world’s first agency to do so.
Last season, the corporation borrowed only Rs 500 crore for procuring 1 million bales (1 bale = 170 kg).
CCI had initiated negotiations with a host of banks and has received sanction for the said amount as cash credit limit. The state-owned trading entity has already borrowed Rs 8,500 crore and is expected to borrow an additional Rs 500 crore in the near future, against the cash credit limit of Rs 15,000 crore.