CCI Should Sell Cotton By E-Auction

CCISouthern India Mills’ Association (SIMA) has said Textiles minister, Santosh Kumar Gangwar should direct Cotton Corporation of India (CCI) to immediately commence selling the commodity directly to the actual users by e-auction, with liberal credit norms.

Due to fall in cotton prices and also to safeguard the interests of farmers, CCI procured 86 lakh bales of cotton under MSP operations, mainly from Andhra Pradesh and Telangana, and sold only three lakh bales, holding the balance of 83 lakh bales, SIMA chairman, T Rajkumar said in a representation sent to Gangwar.

CCI had temporarily suspended sale of cotton and as a result, a large number of textile mills were running short of quality cotton as it was not available in the open market, he said.

Though CCI covered major volume of good quality cotton from Telangana and Andhra Pradesh, the rates quoted by it resulted in speculation as the market prices ruled much below CCI prices, he said and asked the minister to advise CCI to avoid quoting prices which are higher than market rates.

Considering the current financial crisis faced by spinning mills due to continuing glut in the yarn markets and delay in getting Technology Upgradation Fund subsidies and other government dues, CCI should be directed to commence selling of cotton immediately, Rajkumar said.

Tamil Nadu accounts for one-third of the total textile business in India and the textile mills account for 44 per cent of the total spinning capacity of the country and 60 per cent of its yarn exports.

The textile mills in the state earn the country a total foreign exchange of over Rs 75,000 crore, Rajkumar said.

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