Home / Knowledge / News / Textiles / SIMA appeals for re-gig of CCI's e-auction policy
SIMA appeals for re-gig of CCI's e-auction policy
08
Jul '15
The Southern India Mills Association (SIMA) has appealed to textiles minister Santhosh Kumar Gangwar to look into the e-auction policy of Cotton Corporation of India and instruct them to offer at least 50,000 bales (with flexible lot sizes and in multiples of 100 bales) in each centre and in each variety of cotton, give priority to the SMEs and ensure the least difference in the cost of cotton procured by SMEs and the larger players.

In a representation to Gangwar, SIMA chairman T Rajkumar has requested him to instruct CCI to keep adequate stocks till the beginning of the new season to maintain price stability and also enable the SMEs to get continuous supply of cotton as they do not have access for imported cotton, according to a press statement by the association.

Rajkumar has pointed out that during the cotton season 2008-09, a similar situation occurred and CCI fully sold out its MSP cotton to the traders who increased the price by over Rs.3,000 per candy even after getting substantial bulk discount and free credit period up to six months. He has requested the government to ensure that such a situation is not repeated again and protect the interests of small and medium spinning mills and thereby the livelihoods of several lakhs of employees working in the spinning mills.

According to a statement by SIMA, spinning mills in South India especially the mills in Tamil Nadu are currently facing a crisis due to continuous fall in yarn exports during the last 13 months, glut in the domestic market due to oversupply, announcement of attractive industrial polices by various states enabling them to have cost advantage to the tune of Rs 20 per kg of yarn when compared to mills in Tamil Nadu and also undue delay in disbursing the TUF subsidies.

All the textile mills, particularly spinning mills maintain only one week to four weeks cotton stock as against the normal practice of three to six months stock due to financial crisis. In this scenario, the e-auction cotton policy of CCI is affecting the small and medium spinning mills very seriously, the statement said. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Eric Scholler
Groz-Beckert

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

Kevin Nelson
TissueGen

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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