By Our Staff Reporter MUMBAI, FEB. 25
The Southern India Mills’ Association (SIMA) today urged Union Textile Minister, Mr. Anand Sharma, to intervene in cotton selling policy of Cotton Corporation of India (CCI) to sustain the market conditions. In a representation to the Textile Minister, Mr. S. Dinakaran, Chairman, SIMA, sought the attention of the Union Textile Minister on the abrupt increase in the domestic cotton prices during the last ten days, while the international cotton price is stable for almost a month.
He stated that the Cotlook A Index price per pound has been varying between 85 to 89 cents during the last one month whereas Sankar-6 cotton price which was around Rs. 34,000 per candy of 355 kgs during the beginning of February, now ruling at Rs. 36,500.
He pointed out that the main reason for the abnormal hike in price is due to the hoarding of cotton by certain major traders. Mr. Dinakaran remarked that the Cotton Corporation of India has been delaying the announcement of the prices for varieties like MCU-5 and delaying its trade in the domestic market in full swing, which has added fuel to the situation.
SIMA Chairman pointed out that the abrupt increase in cotton prices has sent wrong signals to the international market and the pace of demand for Indian cotton yarn and fabrics have started declining in the recent days. He expressed his concern that the upward trend in domestic cotton price has already made many textile mills to resort for imports which might affect the Indian farmers.
Mr. Dinakaran stated that CCI has procured large volume of cotton in Andhra Pradesh to the tune of 20 lakh bales, particularly the long staple varieties including MCU-5. He pointed out that since these varieties are available only in limited quantity, it should be ensured that these cotton varieties reach the domestic mills and particularly the woven garment and made-up sectors specifically need this cotton to meet their export commitments.
Therefore, SIMA Chief appealed to Union Textile Minister to direct the CCI to announce the prices for the AP cotton varieties particularly MCU5 immediately to avoid panic in the minds of spinners and the downstream sectors.
Mr. Dinakaran has also requested the Minister to ensure that CCI cotton is made available to the domestic sector and avoid exports or selling to the traders in order to sustain the global competitiveness of the textile industry. (Source: Tecoya Trend)