Home / Knowledge / News / Textiles / Cotton value chain welcomes CCI cotton supply scheme
Cotton value chain welcomes CCI cotton supply scheme
28
Dec '16
The cotton industry of India has welcomed Union textiles minister Smriti Irani’s decision to implement the Cotton Corporation of India (CCI) cotton supply scheme, a unique initiative on cotton. The minister approved the scheme that directs CCI to procure cotton on a commercial basis and supply to the mills as opposed to procuring only when prices crash.

The CCI has now announced unique terms and conditions to benefit the MSME textile units. This decision has come after the Southern India Mills’ Association (SIMA) and 25 other textile associations of India representing the entire textile value chain submitted a memorandum to Irani under the leadership of Vanathi Srinivasan, state general secretary, BJP, Tamil Nadu. They demanded cotton fibre security by implementing CCI cotton supply scheme that benefits both farmers and the industry.

In a joint letter sent to the textiles minister by the 26 textile associations, the industry has thanked her for announcing the unique scheme.

On behalf of the industry, M Senthilkumar, chairman of SIMA, stated that the new terms and conditions of fully pressed bales of CCI facilitates the registered MSME textile units to procure cotton by paying only 10 per cent deposit money as against 20 per cent, which is applicable only for the sale quantity of 30,000 bales and above.

He stated that the deposit money up to 2,999 bales is only 15 per cent and this would greatly help the MSME units that are starving for working capital fund in the post-demonetisation regime.

The predominantly cotton based Indian textile industry has been facing repeated recessions since 2008 due to high volatility in cotton prices. This was caused by the large traders and multinational cotton traders taking advantage of hedging facility and cheaper funds, while the mills could not build adequate inventory and have been paying higher price for the cotton during the off season.

More than 75 per cent of the cotton arrives in the market during December to March and around Rs 60,000 crore is required to procure the seed cotton during this period. Since the ginning and spinning mills do not have such funds, the farmers invariably get lower price.

“Earlier there was a difference in the free period ranging from 30 to 75 days and 75 days free period was available for the procurement of 15,000 bales and above and therefore, the MSME textile units could not derive much benefit out of CCI. Now the free period has been made uniform and fixed at 45 days, which would again help the actual users and the MSME units,” said Senthilkumar. (KD)

Click here for terms and conditions of CCI commercial operations.

Fibre2Fashion News Desk – India


Must ReadView All

Pic: UNCTAD

Textiles | On 22nd Oct 2020

Trade rebounds marginally in Q3, stays negative: UNCTAD

The United Nations Conference on Trade and Trade and Development...

Pic: Shutterstock

Apparel/Garments | On 22nd Oct 2020

APAC garment units suffer as COVID hits supply chain: ILO

The COVID-19 crisis has badly hit the garment sector in the...

Pic: Shutterstock

Textiles | On 22nd Oct 2020

RCEP pact likely to be signed at 4th RCEP Summit in Nov

The Regional Comprehensive Economic Partnership (RCEP) is likely to...

Interviews View All

Sachin Sharma, Gem Enviro Management Pvt Ltd

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Top executives, Indian retail players

Top executives
Indian retail players

Walmart's acquisition of Flipkart endorses the humongous opportunities in...

Sunil Rathore, Lacoste India

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Liz Manning,

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Ashish M Amin,

Ashish M Amin

Premier Looms is a leading provider of cutting-edge machinery and...

Oliver Schmitz,

Oliver Schmitz

Germany-based Gmöhling is a leading manufacturer of aluminium containers...

Madison Maxey, Loomia

Madison Maxey
Loomia

Loomia designs and manufactures soft circuit systems that can be produced...

Sachin Pendharkar, Dieffenbacher India Pvt Ltd

Sachin Pendharkar
Dieffenbacher India Pvt Ltd

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

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

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

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant &amp; Nandita are known for being inspired by...

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


October 2020

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


Advanced Search