Home / Knowledge / News / Textiles / Govt gears up for cotton procurement
Govt gears up for cotton procurement
21
Oct '15
In the wake of falling export demand from China for the second straight year, the Indian Government has geared up for large scale purchase of cotton to save farmers from distress selling, according to media reports.

Union Urban Development Minister Venkaiah Naidu has asked the Cotton Corporation of India (CCI) to open 58 large-scale procurement centres in Telangana and start purchasing cotton by October 23. Naidu said this after a review meeting on Monday with officials of CCI, which is expected to open 300 procurement centres in the country this season and 84 in Telangana alone.

According to industry sources, India spent almost Rs 160 billion ($2.5 billion) to buy 8.7 million bales of cotton at minimum support price (MSP) in the marketing year that ended on September 30 compared to just 400,000 bales in the previous year.

They expect the prices in the open market to fall below the MSP in view of the negligible demand from China.

Government buying, aimed at supporting farmers, will prevent the dumping of cotton in overseas markets by the world's biggest producer at a time when global prices are near six-year lows.

China, in the recent years, picked up more than half of India's cotton exports, propping up prices despite record output. But it began cutting import quotas last yearto stimulate demand for domestic cotton after discontinuing a stockpiling programme.

China's imports from India fell 42 per cent in the first nine months of the year to 1.16 million tonnes.

Indian farmers have begun the cotton harvest, but prices are already running below the MSP in some southern spot markets, forcing CCI to buying Cotton at an MSP of Rs 4,100 per 100 kg.

"So far we have opened 50 procurement centres. We could open 300 centres across the country like last year," said BK Mishra chairman and managing director of CCI.

"We haven't fixed any procurement target for the current year, but we will buy as much as farmers want to sell," he added.

At the meeting, Naidu directed that payments to farmers should be made transparently online and the CCI should buy cotton only from the farmers who had the necessary identity cards. He said that the Government was determined to solve cotton farmers' problems, and the CCI should take necessary steps to ensure that the farmers were not cheated by brokers.

According to the Cotton Association of India the export demand was subdued and carry forward stocks were at record high at an estimated 7.9 million bales.

CCI officials said this year's procurement was still likely to be lower than last year since production was set to drop by 1.5 per cent to 37.7 million bales while consumption by local textile units has been rising. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Plan under way to revive Egypt's state-run textile firms

Textiles | On 20th Oct 2018

Plan under way to revive Egypt's state-run textile firms

Egyptian minister for the public enterprise sector Hisham Tawfiq...

Myanmar asks garment units to set up skill testing centres

Apparel/Garments | On 20th Oct 2018

Myanmar asks garment units to set up skill testing centres

Myanmar’s ministry of labour, immigration and population has asked...

Results of Cameroon transgenic cotton trials by 2018 end

Textiles | On 20th Oct 2018

Results of Cameroon transgenic cotton trials by 2018 end

Cameroon’s national cotton development company Sodecoton will...

Interviews View All

Top executives, Indian retail players

Top executives
Indian retail players

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

Subhashini Srinivasan, The S Studio

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Top executives, Textile industry

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Hardik Sanghvi,

Hardik Sanghvi

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

Nitesh Mittal,

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Suresh P Bagrecha,

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Ashok Desai, Bombay Textile Research Association

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Prof Seokheun (Sean) Choi, Binghamton University, State University of New York (SUNY)

Prof Seokheun (Sean) Choi
Binghamton University, State University of New York (SUNY)

A team of researchers from the State University of New York (SUNY),...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

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

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

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 2018

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

news category


Related Categories:

Advanced Search