SIMA hails Textiles Ministry's Move on Cotton Purchase

SIMA hails Textiles Ministry’s Move on Cotton Purchase

Textile industry in southern part of India has welcomed textiles minister Smriti Irani’s announcement of unique terms and conditions for procuring cotton from Cotton Corporation of India (CCI) for the benefit of MSME textile units.

“Under the new terms and conditions for fully pressed bales of CCI facilitates, the registered MSME textile units can procure cotton by paying only 10 per cent deposit money as against 20 per cent, which was applicable only for the sale quantity of 30,000 bales and above,” M Senthilkumar, chairman of Southern India Mills’ Association (SIMA) said.

He added that the deposit money upto 2,999 bales is only 15 per cent, this would greatly help the MSME units that are starving for working capital fund in the post-demonetization regime.

Earlier there was a difference in the free period, ranging from 30-75 days and 75 days free period was available for procurement of 15,000 bales and above, depriving MSME textile the benefit. Now the free period has been made uniform and fixed at 45 days, which will add to the benefits of actual users and the MSME units. In order to benefit the mills, SIMA has also requested CCI to opt for the coastal movement of bales between Gujarat and Tamil Nadu.

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