The Cotton Corporation of India (CCI) has asked the Tamilnadu Spinning Mills Association (TASMA) members to cover their stock requirements immediately.
“... in case mills require stock for a longer period, they may cover it by availing (of) lock-in period facility by paying nominal lock-in charges for the period to carry stocks,” CCI Chief General Manager (Marketing) SK Panigrahi said in a letter to TASMA President AP Appukutti.
He was responding to TASMA’s plea to not divert unsold cotton stocks to traders.
Revival in sector
The lock-in facility will mitigate any risk of price rise in the last quarter of the cotton season which ends on September 30. Panigrahi sought from TASMA mill-wise commitment of cotton required by the first half of next month.
“CCI will keep in mind the said requirement while selling the stocks in the market in July,” the CCI official said.
Panigrahi said the corporation began selling stocks on March 14 this year and offtake by the mills was poor. TASMA, in its letter earlier this week, said there is a revival in the spinning sector and it would help clear stocks.