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SIMA hails CCI initiative to protect MSME sector interests

Mar '20
Pic: Shutterstock
Pic: Shutterstock
The Southern India Mills Association has praised the state-run Cotton Corporation of India (CCI) for offering volume-based bulk discounts for its 2018-19 season cotton and protecting the interests of spinning mills in the micro, small and medium enterprises (MSME) sector by offering discounts from 500 bales and restricting the same at 10,000 bales.

The discount ranges from ₹3,200 to ₹4,400 per candy of 355 kg and CCI has quoted ₹46,400 per candy for 30-mm cotton of fair average quality while the current market price is around ₹40,500.

In a press release issued here yesterday, SIMA chairman Ashwin Chandran said considering the free lifting period and quality claimed by CCI for its cotton, the prices would come closer to the market prices and mills might commence procurement from CCI.

He hoped CCI would soon offer its current year minimum support price (MSP) cotton at market prices at constant intervals till the season end and facilitate stability in cotton prices.

CCI had earlier offered attractive bulk discounts and free period up to 120 days facilitating multinational cotton traders to garner the cotton and speculate the prices during off-season, he said.

He appreciated the decision of textile minister Smriti Irani to abolish such discounts in 2017 to stabilise cotton prices and protect the interests of the cotton users, especially the MSME spinning segment and its downstream sectors.

The SIMA chief also appealed to the government to include cotton yarn under various export benefits to make Indian cotton yarn globally competitive and thereby boost exports. Cotton yarn export from India has dropped around 30 per cent during 2019-20 compared to the previous year.

He said increased yarn exports will stimulate demand for cotton, which in turn would also help the government reduce the losses on account of MSP as CCI is on track to procure up to 100 lakh bales of cotton during the current cotton season.

Fibre2Fashion News Desk (DS)

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