Home / Knowledge / News / Textiles / Govt gears up for cotton procurement
Govt gears up for cotton procurement
21
Oct '15
In the wake of falling export demand from China for the second straight year, the Indian Government has geared up for large scale purchase of cotton to save farmers from distress selling, according to media reports.

Union Urban Development Minister Venkaiah Naidu has asked the Cotton Corporation of India (CCI) to open 58 large-scale procurement centres in Telangana and start purchasing cotton by October 23. Naidu said this after a review meeting on Monday with officials of CCI, which is expected to open 300 procurement centres in the country this season and 84 in Telangana alone.

According to industry sources, India spent almost Rs 160 billion ($2.5 billion) to buy 8.7 million bales of cotton at minimum support price (MSP) in the marketing year that ended on September 30 compared to just 400,000 bales in the previous year.

They expect the prices in the open market to fall below the MSP in view of the negligible demand from China.

Government buying, aimed at supporting farmers, will prevent the dumping of cotton in overseas markets by the world's biggest producer at a time when global prices are near six-year lows.

China, in the recent years, picked up more than half of India's cotton exports, propping up prices despite record output. But it began cutting import quotas last yearto stimulate demand for domestic cotton after discontinuing a stockpiling programme.

China's imports from India fell 42 per cent in the first nine months of the year to 1.16 million tonnes.

Indian farmers have begun the cotton harvest, but prices are already running below the MSP in some southern spot markets, forcing CCI to buying Cotton at an MSP of Rs 4,100 per 100 kg.

"So far we have opened 50 procurement centres. We could open 300 centres across the country like last year," said BK Mishra chairman and managing director of CCI.

"We haven't fixed any procurement target for the current year, but we will buy as much as farmers want to sell," he added.

At the meeting, Naidu directed that payments to farmers should be made transparently online and the CCI should buy cotton only from the farmers who had the necessary identity cards. He said that the Government was determined to solve cotton farmers' problems, and the CCI should take necessary steps to ensure that the farmers were not cheated by brokers.

According to the Cotton Association of India the export demand was subdued and carry forward stocks were at record high at an estimated 7.9 million bales.

CCI officials said this year's procurement was still likely to be lower than last year since production was set to drop by 1.5 per cent to 37.7 million bales while consumption by local textile units has been rising. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

India’s WPI inflation for textiles up 0.3% in Nov 2017

Textiles | On 14th Dec 2017

India’s WPI inflation for textiles up 0.3% in Nov 2017

India’s annual rate of inflation, based on monthly wholesale price...

Cambodia’s economic growth to remain strong in 2017 & 2018

Apparel/Garments | On 14th Dec 2017

Cambodia’s economic growth to remain strong in 2017 & 2018

Cambodia’s economy is expected to grow at 6.9 per cent and 6.8 per...

2 garment factories to be set up in Jordan’s Arjan, Souf

Apparel/Garments | On 14th Dec 2017

2 garment factories to be set up in Jordan’s Arjan, Souf

Jordanian Prime Minister Hani Mulki recently laid the foundation...

Interviews View All

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search