Home / Knowledge / News / Textiles / SIMA again demands offloading CCI cotton to textile mills
SIMA again demands offloading CCI cotton to textile mills
15
Mar '13
The domestic cotton prices for the major variety of cotton viz., Sankar-6 has been stable from the beginning of the current cotton season (from October 2012) ruling at Rs.33, 500/- per candy of 355 kgs till the middle of February 2013.  The cotton prices suddenly and abruptly increased to Rs.35, 000 per candy from the second fortnight of February 2013 raising it to Rs.38, 500/- per candy now. 

The international prices which have been stable till the end of February 2013 (85 to 88 cents per lbs) have increased in the recent weeks and now ruling at 95 cents per candy.  The exchange rate has also increased marginally.  As a result, the cotton prices have been increasing abnormally in the recent past threatening the competitiveness of the Indian cotton textiles industry.

Mr. S. Dinakaran, Chairman of The Southern India Mills’ Association (SIMA), has stated that the main reason contributing the spurt in the cotton prices is due to the holding of inventory by government procurement agencies (viz., CCI and NAFED, etc) and major cotton traders.  He has stated that the cotton export registration also abruptly increased during the month of February 2012 which has been steadily increasing from the beginning of the cotton season, which today seems to have exceeded 80 lakh bales mark, fuelling the situation.

Mr. Dinakaran has stated that the Association had appealed to the Government during the end of February 2013 to direct CCI and other procurement agencies to announce the cotton prices and start selling the cotton only to the actual users to stabilize the cotton prices. However, he felt unfortunate that the government did not heed to the request of the user industry even after 15 days which resulted in increase of another Rs.2500/- per candy in the cotton prices.

SIMA Chief has stated that though the textile mills have the option of importing international cotton, it would take 45 days time for the mills to receive the cotton and therefore, all of a sudden artificial scarcity has been created by the traders and the government procurement agencies by holding the stocks and speculating the prices.  He has added that this sudden volatility in cotton prices would seriously affect the downstream sectors such as handlooms, power looms and garments, who normally quote the prices for three months’ period for their exports.   

Mr. Dinakaran has pointed out that such an increase would seriously affect the viability of the entire textile manufacturing units in the textile value chain and feared that the industry might face yet another crisis if the government does not act upon and instruct the cotton procurement agencies to sell the cotton to the actual industry users immediately. He has further pointed out by creating artificially scarcity in India, the multinational cotton traders are trying to jack up the prices globally, which has contributed to the increase in the international prices recently. 


Must ReadView All

Indian textile & apparel exports fall 13% in Jan 2018

Textiles | On 17th Feb 2018

Indian textile & apparel exports fall 13% in Jan 2018

A decline of 13 per cent year-on-year has been observed in the...

Brazilian cotton prices move up in first fortnight

Textiles | On 17th Feb 2018

Brazilian cotton prices move up in first fortnight

Cotton prices rose in Brazil in the first fortnight of February, as...

Courtesy: OrganoClick

Textiles | On 17th Feb 2018

OrganoClick introduces OrganoTex for water repellency

OrganoClick has introduced OrganoTex, a textile impregnation product...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

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

February 2018

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
70.3%
No
12.9%
Skip
16.8%

Total Votes: 101

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
63.4%
No
29.7%
Skip
6.9%

Total Votes: 101

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
88.1%
No
8.9%
Skip
3.0%

Total Votes: 101

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
83.2%
No
7.9%
Skip
8.9%

Total Votes: 101


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