The Cotton Corporation of India (CCI) has received a strong request from the Tamil Nadu Spinning Mills Association (TASMA) to hold onto its unsold cotton inventories instead of selling them to merchants. This action is being taken as the spinning industry is seeing a rise in demand due to an increase in orders for clothing.
TASMA President AP Appukutti, in a letter addressed to the CCI, emphasised the critical nature of this request. “The spinning mills are witnessing a positive revival, with normal activities picking up once again. This upturn necessitates an increased cotton supply to meet the growing demand,” Appukutti stated, said reports.
The association has emphasised the significance of keeping a stable supply chain by expressing confidence that its members will be able to obtain the CCI’s cotton stocks by the end of August.
Appukutti further warned of potential repercussions if the CCI were to sell its stocks to traders. “Such a move could trigger a cascading effect throughout the value chain,” he cautioned.
He contended that merchants could raise prices due to profit-driven behaviour, which could upset the recent upward trend in the spinning industry.
