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CCI's selling strategy worries textile value chain – SIMA
Mar '13
The textile industry has been pleading to the Government to direct Cotton Corporation of India (CCI) to offload the cotton to the domestic textile mills to maintain the stability in cotton prices.  Unfortunately, it has been reported that CCI and NAFED plan to launch e-auctioning to export 10 lakh bales of the 22 lakh bales it has procured from Andhra Pradesh, Karnataka, Odisha and Maharashtra at minimum support price.

Mr.S.Dinkaran, Chairman, The Southern India Mills’ Association (SIMA) said that already cotton export registration crossed the mark of 80 lakh bales and the proposal of government procurement agencies to export 10 lakh bales would ruin the cotton textile industry which has now limping back to normalcy after huge suffering.   

The role of cotton procurement agencies is to protect the interests of farmers when they are in stress and help the ultimate user industry.  Mr.Dinkaran has felt the decision of CCI and NAFED as unfortunate and would lead the industry to yet turmoil. When the cotton manufacturing counties across the globe are holding back their stock to look after the domestic industry needs, the policy of the Indian government has been the just opposite where the interests of domestic industry are not considered while taking any export policy decisions. 

SIMA chief, therefore, pleaded to the Government to stop the proposed export by CCI/ NAFED and avoid cotton scarcity at the end of the cotton season and stabilize the prices in the overall interests of the textiles and clothing industry in the country.

Southern India Mills' Association (SIMA)

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