Home / Knowledge / News / Textiles / CCI sitting on large stocks of high priced cotton
CCI sitting on large stocks of high priced cotton
Mar '09
The Cotton Corporation of India (CCI), a government owned buying and selling trading house for cotton in India, has in the new cotton season purchased cotton amounting to 10 million bales (1 bale =170 kg) against just 1 million bales purchased in the previous cotton season.

This has invariably pushed up its borrowings and will touch Rs 90 billion in the new cotton season against just Rs 5 billion in the last season. The outgo in comparison to the increase in volumes is high due to the new Minimum Support Prices (MSP) introduced in the new cotton season.

These new MSP had been increased by nearly 25-40 percent, dependent on the cotton variety and this in turn has increased the borrowings of CCI. But the real problem for CCI is getting remunerative prices for the cotton it has purchased amounting to 10 million bales.

Cotton prices, since the new season began late last year had been ruling at four year lows for quite a period of time. But since the procurement price of CCI is very much higher, it is not able to dispose off the high stocks of cotton lying in it's various warehouses.

Experts aver that incase the slowdown does not do a complete 'U' and trade as a well as prices in the white gold do not improve, the financial position of CCI could turn very precarious and there are chances of the entire procurement process getting disrupted due to the same.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Alibaba Group

Apparel/Garments | On 18th Jan 2017

Alibaba forges global alliance to fight counterfeiting

Jack Ma led Alibaba Group has forged an alliance with various global...

Apparel/Garments | On 18th Jan 2017

HanesBrands earns above average scores in CDP 2016

Global apparel and innerwear retailer HanesBrands said it has...

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Karan Toshniwal
Orange O Tec

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

Johan Berlin
InvestKonsult Sweden AB

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search