The Southern India Mills’ Association (SIMA) has written to the Indian Government, including the Prime Minister, Finance Minister, Minister of Textiles and Minister for PMO Office, requesting offloading of cotton parked with the Cotton Corporation of India (CCI) to domestic textile mills and not to the cotton traders.
SIMA has urged the Government to interfere in offloading CCI cotton to stabilize the yarn prices in the country.
The appeal says that the CCI and National Agricultural Cooperative Marketing Federation of India Limited (NAFED) purchased over 2.5 million bales of cotton of 170 kg each, as part of minimum support price (MSP) operation at prices 15 to 20 percent lower than today’s prices.
According to SIMA, large traders and the CCI still hold about 5 to 6 million bales of cotton, which has created an artificial scarcity and increased the prices by 15 percent in a month, eroding the export competitiveness of textile mills. As a result, the export growth has started turning negative.
The association appealed the Government to immediately intervene and direct the CCI to offload its stock only to domestic textile mills, in order to sustain the viability of the country’s textiles and clothing sector.
Source:
http://www.fibre2fashion.com/news/Association-news/sima/newsdetails.aspx?news_id=122426
