The recent spurt in cotton prices has resulted in higher input costs for the spinning sector in the country leading to some financial stress. In order to ease the situation, Cotton Corporation of India (CCI) has started to sell its stock to Small Scale Industries (SSI) spinning mills.
The online auction of the balance unsold stock of the CCI has commenced from 2nd August to the SSI registered with the office of textile commissioner and the government co-operative mills which are fully dependent on them for their cotton requirements.
The decision came from textile ministry to direct CCI to sell its existing stock purchased under Minimum Support Price (MSP) to spinning mills in the Micro, Small and Medium Enterprises (MSME) category only.
“The financial assistance provided to textile units under Technology Upgradation Fund Scheme (TUFS) by way of interest reimbursement/capital subsidy is marginal as compared to the loan amount received by them from banks,” Ajay Tamta, textile minister of the state said.