Appeal to procure/block MSP procured cotton available with Cotton Corporation of India – reg.

To maintain the price stability in cotton, CITI, SIMA and other regional associations made concentrated efforts to avoid selling of MSP procured cotton to traders by the Cotton Corporation of India (CCI) and prioritize sale to the actual users i.e. the consuming textile mills. As a result of the concentrated efforts, CCI updated its terms and conditions for sale of FP cotton through e-auction by debarring the traders from sales made on or after 14th March 2024. This historic policy initiative had stabilized the cotton prices and enabled the industry to sustain its performance and meet export commitments.

In a recent review meeting held by the Ministry of Textiles, it was informed that out of about 33 lakh bales of cotton procured by CCI under MSP operations this year, only 9 lakh bales could be sold by CCI so far and about 24 lakh bales are still available with CCI for further sales. To minimize its losses, CCI is now constrained to re-open sales of MSP procured cotton to traders from 1st July 2024.

Ministry of Textiles in the meeting advised CITI, SIMA, TEXPROCIL to ask their member mills to procure maximum volume of cotton from CCI before 30th June 2024 for fulfilling their requirement. Alternatively, the mills having working capital constraints may give a commitment for the July and August months’ requirements and lock the volume at the current price (excluding applicable carrying charges) immediately.

CCI has supported the industry by supplying better quality cotton and relative price stability. Members are requested to avail of this opportunity and support CCI in the early disbursement by placing their specific commitments for July and August months, delivery at the earliest.

Placed for your information and necessary action.

Thanking you,

Best regards,

Rakesh Mehra