Home / Knowledge / News / Textiles / SIMA demands CCI revamp for fair cotton trading policy
SIMA demands CCI revamp for fair cotton trading policy
15
Oct '15
The Southern India Mills' Association (SIMA) has appealed to Textiles Minister Santosh Gangwar to direct the Cotton Corporation of India (CCI) to adopt a transparent and fair cotton trading policy which would ensure win-win strategy both for the farming and cotton textile manufacturing communities.

In a press release, SIMA Chairman M Senthilkumar has proposed restructuring the Board of CCI by inducting major stakeholders particularly, the industry representatives, which consumes over 80 per cent of the cotton produced in the country. He has said that any short sighted policy would only aggravate the ailing textile industry resulting in serious financial stress.

Senthilkumar pointed out that during the season 2014-15, CCI procured the entire volume of good quality cotton grown in Telangana, Andhra Pradesh and parts of Maharashtra and did not release this cotton for more than two months making the actual users suffer seriously. He said that CCI has always been quoting much higher bench mark price than the actual market price thus resulting in speculation.

“During the cotton season 2008-09, CCI offered bulk discount benefiting few traders and making the industry pay Rs.2000 to Rs.4000 more for the home grown cotton,” he said. He also that during the season 2014-15 also, CCI adopted the same policy of offering bulk lots and forcing small and medium size mills pay Rs.500 to Rs.1000 to the traders for procuring the required cotton. “CCI should offer cotton in smaller lots so that all the size of textile mills could directly procure cotton from CCI and avoid middlemen,” he said.

Senthilkumar pointed out that the CCI plays a major role in seed sales and often sells the seeds at lower price, which affect the price of cotton and its procurement by the regular ginners. The SIMA Chairman appealed to the Textiles Minister to direct the CCI to commence cotton sales immediately and sell the cotton in a phased manner throughout the season and ensure stability in the cotton price and also see that domestic mills are able to purchase the CCI cotton at international price or slightly lower than the same to take advantage of the home grown cotton and mitigate the challenges currently being faced by the industry.

CCI should avoid quoting higher bench mark price which results in speculation and e-auction should be left to the market forces, he said.

Senthilkumar also said CCI should also sell the cotton seeds by e-auction and follow fair cotton seed trading policy.

The SIMA chief also appealed for the merger of the Cotton Consultative Committee and Cotton Advisory Board as it was functioning earlier as there is no transparency in the estimates. He has also suggested reviving the stakeholders Sub-Committee which has been estimating the ginning and pressing figures and also the closing stock of cotton in a transparent manner. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Pressure on  Indian textiles exporters to ease by Q3: ICRA

Textiles | On 17th Oct 2017

Pressure on Indian textiles exporters to ease by Q3: ICRA

Pressures on the profit and debt levels of textiles exporters is...

S Korean fashion brands expand overseas amid slump at home

Fashion | On 17th Oct 2017

S Korean fashion brands expand overseas amid slump at home

South Korean fashion firms are keen on tapping into overseas markets...

GMAC urges Cambodia to push fabric-forward rule in RCEP

Apparel/Garments | On 17th Oct 2017

GMAC urges Cambodia to push fabric-forward rule in RCEP

Representatives from the Garment Manufacturers Association of...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Johan Berlin
InvestKonsult Sweden AB

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

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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

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
76.9%
No
13.8%
Skip
9.2%

Total Votes: 65

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
61.5%
No
27.7%
Skip
10.8%

Total Votes: 65

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
84.6%
No
10.8%
Skip
4.6%

Total Votes: 65

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
73.8%
No
12.3%
Skip
13.8%

Total Votes: 65


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