The Southern India Mills’ Association has appealed to the Cotton Corporation of India (CCI) to sell the cotton stocks with it at market price.
In a press release, SIMA chairman Ashwin Chandran said the CCI was covering almost 50 % of the stocks that were coming into the market as the government had increased Minimum Support Price for cotton by 26 % t0 28 % this season.
The CCI was said to have more than 35 lakh cotton stock with it. Though it started purchasing cotton in the market in November, it was releasing the stocks only now. The government this year allocated ₹ 2,017 crore in the Union Budget for the CCI to carry out MSP operations.
According to reports available, India has already exported 20 lakh bales cotton this season and is expected to export nearly 60 lakh bales as against the initial estimate of 50 lakh bales.
China is expected to import a lot of cotton from the US and India. If the exports increase, there may be panic in the market as the season advances.
The Association appealed to the Union Textile Minister to issue instructions to CCI to sell cotton at market prices as against the high prices it was quoting now.
The domestic textile industry should get cotton at competitive prices, Mr. Chandran said.
Only if cotton was made available at competitive prices would the domestic textile units be able to tap the opportunities in the international market, he added.