The Tamilnadu Spinning Mills Association (TASMA) has urged Union Textile Minister Giriraj Singh to ensure that the Cotton Corporation of India (CCI) sells cotton procured through the minimum support price (MSP) programme to actual user mills only till the season’s end.
TASMA Chief Advisor K Venkatachalam stated in a letter to the minister that the cotton textile value chain will be able to maintain its performance, particularly in export markets, if CCI’s stocks are sold in a calibrated manner.
According to Venkatachalam, there are signs that the industry is expanding because of the upcoming festival season.
He expressed gratitude to the Centre for recommending the CCI to sell cotton it has purchased only to user mills starting on 13th March 2024, calling it “the pathbreaking policy initiative” that has stabilised cotton prices and allowed the sector to fulfil its export obligations. Additionally, it supported the cotton textile value chain’s export performance to the greatest extent feasible.
Of the total cotton it procured, the CCI is currently holding around 20 lakh bales (170 kg each), which is only around 22 days’ consumption. “We have another three months for the new cotton to arrive in the market. To ensure the stability of cotton prices, fulfil export commitments and sustain their current performance, it is essential to ensure the availability of home-grown cotton to the cotton spinning mills in India,” said the TASMA advisor.
