SIMA urges CCI to announce cotton prices

He has further said that textile mills in Tamil Nadu continue to suffer due to acute power shortage and expected to revive only from June 2013 when the power supply position improves. He has pointed out that the reason for the improvement of the textile industry’s performance is the stability in cotton prices and the availability of quality cotton. He has expressed his satisfaction over the global cotton position and the performance the stakeholders of entire textile value chain. 

SIMA Chairman has feared that the domestic cotton prices have started increasing abruptly during the last ten days while the international prices are firm for more than a month mainly because certain leading traders are hoarding the cotton and started speculating the prices.  He has added that Cotton Corporation of India has also been delaying in announcing the prices for varieties like MCU-5 and selling the cotton to the domestic industry, adding fuel to the situation. 

In a representation sent to the Hon’ble Union Textile Minister, Mr. Anand Sharma, SIMA Chairman, Mr. Dinakaran has said that while thanking the Hon’ble Minister for helping to revive from the crisis by announcing debt restructuring package of Rs.35, 000 crores and the various incentives offered by the Government, he requested the Hon’ble Minister to intervene CCI cotton selling policy to sustain the market conditions. 

Mr.Dinakaran has said that the comfortable cotton position and the stability in prices during the cotton season 2012-13 are the major reasons for the improved performance of the domestic textile mills.  He has pointed out that around 55 lakhs bales of cotton have already been registered and around 33 lakh bales of cotton have already been shipped out of the country. 

In the representation, SIMA Chairman has brought the attention of the Union Textile Minister on the abrupt increase in the domestic cotton prices during the last ten days, while the international cotton price is stable for almost a month.  He has stated that the Cotlook A Index price per pound has been varying between 85 to 89 cents during the last one month whereas Sankar-6 cotton price which was around Rs.34,000/- per candy of 355 kgs during the beginning of  February, now ruling at Rs.36,500/-. 

He has pointed out that the main reason for the abnormal hike in price is due to the hoarding of cotton by certain major traders.  Mr.Dinakaran has remarked that the Cotton Corporation of India has been delaying the announcement of the prices for varieties like MCU-5 and delaying its trade in the domestic market in full swing, which has added fuel to the situation.