The Southern India Mills’ Association has appealed to the Textiles Minister Santosh Kumar Gangwar to direct Cotton Corporation of India to offload cotton and avoid rate speculation.
The association has, in a communication, pointed out that the Corporation had, in the interest of farmers, procured 86 lakh bales (1 bale is 170 kg) of cotton (under MSP operations) mainly from Andhra Pradesh and Telangana, but sold only 3 lakh bales. This suspension of sale by the CCI is causing concern among the mills as quality cotton is not available in the open market.
Further, the rate quoted by CCI has resulted in speculation as the market price is far below the CCI prices.
While appealing to the Minister to direct CCI to commence selling of cotton by e-auction directly to the actual users, SIMA Chairman T Rajkumar also requested for considering liberal credit norms as the spinning sector is facing a cash crunch situation.