Home / Knowledge / News / Textiles / FICCI seeks adequate release of cotton procured by CCI
FICCI seeks adequate release of cotton procured by CCI
10
Jun '15
The Federation of Indian Chambers of Commerce and Industry (FICCI) has sought urgent intervention of the Ministry of Textiles in adequate release of cotton procured by the Cotton Corporation of India (CCI).
 
In a letter to textiles minister Santosh Kumar Gangwar, FICCI secretary general A Didar Singh said there has been a perceptible rise in cotton prices in India during the last few weeks and the availability of cotton in the market has also reduced for the textiles industry.
 
“The role of CCI is primarily to ensure Minimum Support Price (MSP) operation for the farmers so that they get a remunerative price for their products. However, at the same time if the procured cotton is not released in time for the industry and is retained as a stock by CCI, it distorts the market and leads to artificial increase in prices thereby making the user segment uncompetitive,” Singh said in the letter.
 
According to FICCI the arrival of cotton in the Indian market has dropped considerably in the last few days to 20,000 bales. The total requirement of mills is close to 85,000-90,000 bales per day whereas CCI has been offering only 40,000 bales per day, which also has largely remained unsold because of excessively high prices.
 
Of the 85.8 lakh bales of cotton procured by CCI in the current season, it has till date sold only 10.8 lakh bales, and hence it is carrying stocks of 75 lakh bales.
 
In some of the states like Andhra Pradesh, Telangana and Maharashtra, CCI has bought large quantities through MSP operations, creating a shortage of cotton in these states. The local mills are forced to buy cotton from distant places, incurring additional transportation and other costs. CCI’s huge stocks are pushing up cotton prices all over the country. Taking advantage of this situation, private traders are hoarding cotton because of the perception that non-disposal of cotton by CCI would push up cotton prices further. If CCI disposes off procured cotton in large quantities at reasonable prices, hoarding by private traders would also stop and they would be forced to sell the cotton at market prices, Singh explained in his letter.
 
Indian cotton was cheaper than international cotton from the beginning of the current cotton year. But the situation has changed significantly now and the prices are substantially above the international prices mainly because of low cotton arrival in the market, FICCI said and insisted that adequate release of cotton is required to ensure that cotton is available to the mills and industry at a competitive rate and at the earliest. (RKS)
 

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Abhishek Pachauri

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

Eric Scholler
Groz-Beckert

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Eamonn Tighe
Nature Works LLC

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

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

October 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
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

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
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

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
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

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
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


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