>>
Home / Knowledge / News / Textiles / CAI opposes creation of cotton buffer stock
CAI opposes creation of cotton buffer stock
02
Nov '16
The Cotton Association of India (CAI) has opposed the creation of a cotton buffer stock and urged the Central government to snub textile industry's request of directing Cotton Corporation of India (CCI) to retain the buffer stock. This move will take the country back to the pre-liberalised era of late 1980s and early 1990s, according to the CAI.

The textile industry wants CCI to procure about 70 to 80 lakh bales cotton during the peak season and keep it as buffer stock, to be sold to actual users during the months of May to September.

“The idea of creating a buffer stock for exclusive use by a certain sector is wrong as it will not only distort the market but will also unsettle other sectors of the cotton value chain,” said Dhiren N. Sheth, president of CAI, in an official statement.

“Apart from this, creation of a buffer stock system would require a total investment of about Rs 16,000 crore for procuring the desired 80 lakh bales of cotton which in turn will involve a total recurring expenditure of hundreds of crore a year by way of carrying cost including interest and warehousing cost. In addition to this, CCI will have to bear the loss that may arise due to fluctuation in prices,” he added.

A similar reserve policy was also implemented in China. A huge stockpile of cotton was created in the country which was eventually liquidated. The country's cotton economy continues to suffer due to this debacle.

Additionally, China is a huge cotton deficit country while India is a huge cotton surplus country and cotton is available to Indian mills at their doorstep. This is another good reason why India should not follow suit and create any buffer stock, says the statement.

“India should also learn a lesson from mistake that China made by creating a buffer stock, which created inefficiencies in their system for which China continues to pay a heavy price even now.  If the problem sought to be addressed by creating a buffer stock scheme is non-availability of funds with the textile mills to buy and stock cotton, it would be appropriate to address this through banking channels, Reserve Bank of India and the finance ministry rather than creating this scheme,” continued Sheth.

The Indian government had earlier rejected a similar proposal for creating a strategic cotton reserve for exclusive sales to mills. (KD)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock.com

Apparel/Garments | On 26th May 2022

US apparel import from India jump 44% in March compared to Oct ’21

Apparel imports of the United States from India stood at $625.830...

Pic: Shutterstock

Textiles | On 25th May 2022

New York senate passes bill to ban harmful PFAS in apparel

The New York State senate recently passed a bill that prohibits the...

Pic: craig hastings | Dreamstime.com

Textiles | On 25th May 2022

German GDP rises by 0.2% in Q1 2022 over Q4 2021: Destatis

Germany’s GDP rose by 0.2 per cent in the first quarter (Q1) of 2022...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Fabric selection & recommendation based on client's brief

Textile Industry, Head Honchos

Textile Industry
Head Honchos

Increase foreign exchange and create jobs

Textile Industry, Head honchos

Textile Industry
Head honchos

Delay in adopting water sustainability both financially & environmentally...

Stan Jewell,

Stan Jewell

Founded in 1921, Renfro Brands is a leading designer, manufacturer, and...

Mohammad Ali Khokon,

Mohammad Ali Khokon

<div>The Bangladesh Textile Mills Association (BTMA) is the national trade ...

Hugo De Boon & Koen Meerkerk,

Hugo De Boon & Koen Meerkerk

Using discarded mangoes that are no longer consumable and usually have...

Sven Ghyselinck, Devan Chemical

Sven Ghyselinck
Devan Chemical

Headquartered in Belgium and with offices in the United Kingdom, Portugal...

Sachin Pendharkar, Dieffenbacher India Pvt Ltd

Sachin Pendharkar
Dieffenbacher India Pvt Ltd

Germany-based Dieffenbacher Group is a producer of high-quality composites ...

Steve McCullough & Marco Weichert, Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Steve McCullough & Marco Weichert
Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Functional Fabric Fair is a trade-exclusive event showcasing the latest...

Frederick Anderson, Brand - Frederick Anderson

Frederick Anderson
Brand - Frederick Anderson

New York-based designer Frederick Anderson has been in the fashion...

Gauri Verma, Label - The Jodi Life

Gauri Verma
Label - The Jodi Life

THE JODI LIFE is an Indian fashion label that creates ready-to-wear for...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali
Kalaneca

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

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

Leave your Comments

ESTEEMED CLIENTS

Walmart
Marzoli Machines Textile s.r.l.
ZAITEX spa
Splash
Kornit Digital Asia Pacific Ltd
Asos
K AND D ITMACH EXPOSITIONS LLP
Newtech Textile Technology Development (Shanghai) Company Limited
The LYCRA Company Singapore  Pte. Ltd
John Varvatos
Shanghai  Aige Exhibition Service Co., Ltd
Lenzing Aktiengesellschaft
UBM China (Shanghai)
Italian Trade Commission
IFF Media Ag - International Media Services
Recron Polyester from Reliance Industries Limited
Nandan Denim Limited
LC Waikiki
Sateri (Jiujiang) Fiber Co.,Ltd
Midas Clothing Limited
Varner AS Retail
Landmark Group
Chico’ FAS
Performance Days
Gloria Jeans
MAS Active / MAS Kreeda / MAS Bodyline
Color Service s.r.l.
Dow Silicones Corporation
Nihalani Events Management
China World International Exhibition Company Limited
JES MEDIA, INC
Lacoste (Wanchai)
Tory Burch Hong Kong Ltd
IDH – The Sustainable Trade Initiative
EPCH
Infor (Hong Kong) Limited
Huntsman (Singapore) Pte Ltd
Thai Trade Center
Coats Digital Limited
CGS Inc.
J ;& P Coats
GHCL LIMITED
Centric Software
Saurer Textile Solutions Pvt. Ltd.
Shima Seiki Mfg. Ltd.
Indofil Industries Limited - Specialty & Performance Chemicals Division
Flainox S.r.l.
Kern – Liebers Textile
Haelixa AG
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Messe Frankfurt Exhibition GmbH
Lectra Technologies India Pvt Ltd.
NV Michel Van de Wiele
Truetzschler India Private Limited
Datacolor AG Europe
Alix Partners
Bluestem Global Sourcing Limited
N9 World Technologies Private Limited
Tchibo GmbH
NITI Aayog
Permoda(Koaj/Armi/Pronto/Bkul)
Thai Acrylic Fibre Company Limited
Istanbul Fuarcilik A.S.
HYOSUNG CORPORATION INDIA PRIVATE LIMITED
USTER
SYNERGIES HONG KONG LIMITED
COTTON COUNCIL INTERNATIONAL
DuPont de Nemours, Inc.,
G-Star Raw C.V.
Gap International Sourcing Limited
Meera Dyestuff Industries
Karl Mayer Textilmaschinenfabrik GmbH
Sportmaster Ltd.
THE BOMBAY DYEING ;& MFG.CO. LTD
Woolmark Services India Pvt. Ltd.
BIANCA
Groz-Beckert East Asia LLP
DyStar India Pvt. Ltd
T.T. Limited
ITMA Services Pte Ltd
VNU Exhibitions Asia
Brückner Trockentechnik GmbH & Co. KG
Reiter India Private Limited
Vardhman Textile Ltd
Lenzing Aktiengesellschaft - India
Brandix Lanka Limited
Chori Company Limited
Loris Bellini S.r.l.
X-Rite Asia Pacific Limited (HK)
Vianney Textil Hogar S.A. De C.V.
PVH Corporation
Savio Macchine Tessili S.P.A.
Cat Tuong Real Estate Group Joint Stock Company
Mesdan SPA
Lottmann Communications
Bluesign Technologies Ag
Lisa S.P.A.
Aquarelle Clothing Limited
Arvind Limited
H. Stoll AG & Company KG
Copenhagen Fashion Summit
Guess Europe Sagl,
Hirdaramani International Export Private Limited
Alison Hayes Romania
KAS Direct Sourcing
Officina Meccanica Dora Enrico Srl
Datatex Consulting Srl
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
C;&A Sourcing International Ltd
TÜYAP IHTISAS FUARLARI A.S.
Aleph Srl
Green Fibre
BRINKMANN GMBH
Lululemon Athletica Inc
Page Industries Limited (Bangalore)
Sainsbury's Argos Asia Limited
Zünd Systemtechnik AG
G.A.S. unternehmenskommunikation gmbh
Decathlon
Deckers Outdoor (Guangzhou) Consultant Co., LTD.
Palexpo SA
Target Corporation (MN)
EMBEE CORPORATION
The LYCRA Company Singapore  Pte. Ltd
Gokaldas Exports Limited
Aramark Uniform ;& Career Apparel, LLC
Rayonese Textile Inc., Division de Culp Inc.
Applied DNA Sciences Inc
Restoque S.A.
Hela Clothing Pvt Ltd
Lifestyle
EUROVET ASIA LTD
Abit
Itema Weaving (India) Private Limited
Rieter India Private Limited
Taiwan Textile Federation (TTF)
Mayer & Cie. GmbH & Co. KG
BIRLA CENTURY A DIVISION OF CENTURY TEXTILES AND INDUSTRIES
CSGIA(China Screen Printing & Graphic Imaging Association)
International Textile Manufacturers Federation
Eurofins BLC Leather Technology Centre Ltd
Seasalt Limited
IIGM Private Limited
Boardriders Asia Sourcing Limited
Desigual - ABASIC, S.A.
Jindal Worldwide Limited
Maceton Limited
Pt. Peraga Nusantara Jaya Sakti
TESTEX AG, Swiss Textile Testing Institute
Comasia Limited
Calvin Klein
SHAHI Exports Pvt Ltd
Stahl Holdings B.V.,
Thermore (Far East) Ltd.
BTSR International S.P.A.
Messe Duesseldorf
FESPA (Reigate)
H;&M Hennes ;& Mauritz (Far East) Ltd
GERBER TECHNOLOGY LTD.
Eastman Chemical Company
OVS Hong Kong Sourcing Ltd.
TESCO INTERNATIONAL SOURCING LIMITED
Equinox Impex India
Amazon China
Jiangsu Yingyang Nonwoven Machinery Company Limited
Zydex Industries
BIMBA ;& LOLA SL
Rosset ;& Cia Limited
Gatsby Africa
Esprit Europe Services GmbH
Etam Group Strategy Hong Kong Limited
Phong Phu international JSC (PPJ)
Recron Polyester from Reliance Industries Limited
Indo Tex
KIABI
Tommy Hilfiger
Tradewind International Servicing
FULGAR SpA
BTC Textiles LLC
The Top Form Brassiere Manufacturing Company Limited
TEXVALLEY MARKET LIMITED
Under Armour Global Sourcing Ltd
Tuyap Tum Fuarcilik Yapim A.S.
Weitmann & Konrad GmbH & Co. KG
APLF Limited
Grasim Industries Limited
Groz-Beckert KG
IKEA of Sweden AB
GIOVANNI BOZZETTO S.p.A.
Puma
Inter Expo Center Ltd.
International Sourcing Expo Australia
Babyshop
Colours India Inc
Xtema - Thomas Lebherz Textilmaschinen
Helly Hansen Far East Ltd
Sportswear Company Spa
Benetton Group

May 2022

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


Advanced Search