CITI Welcomes CCI’s Move to Introduce Bulk Quantity Discount Scheme for Cotton Sale
New Delhi, Tuesday, 03 March 2020: Shri T. Rajkumar, Chairman, Confederation of Indian Textile Industry (CITI), an apex industry chamber of the Textile & Clothing Industry of India welcomed the move of The Cotton Corporation of India Ltd. (CCI) for introducing today the Bulk Quantity Discount Scheme for the sale of Cotton procured during 2018-19. He further stated that the decision will give a much-needed boost to the already raw cotton starved Indian Cotton Industry which has been reeling under severe pressure due to the high raw cotton prices and declining export of cotton yarn. CITI Chairman also stated that this move will really give an impetus to Indian cotton Industry to regain and increase its share of exports in international trade.
Mr. T Rajkumar thanked the Hon’ble Union Minister of Textiles, Smt Smriti Zubin Irani for her intervention for enabling CCI to offer volume based bulk discounts for its 2018-19 cotton and protecting the interests of MSME spinning mills by offering the discounts. He appreciated the attractive scheme, which offers an attractive discount of Rs 4400 per candy on purchase of 10000 bales a day and also Rs 3200 per candy even for a small quantity of 500 bales. Whereas, MSME, KVIC and Cooperative Mills would be entitled to a minimum discount of Rs 3200 per candy even purchase of one lot a day.
Shri T. Rajkumar further pointed out that during the current financial year 2019-20, the export of cotton yarn declined by more than 30% due to which there was a very limited demand of raw cotton in the cotton industry which discouraged not only the cotton spinners but also CCI, which could not sell the cotton procured in the 2018-19 season to the tune of nine lakh bales due to drop in cotton prices.
He further stated that in the current season, CCI has already procured over 60 lakh bales of cotton under MSP, the cost of which is much higher than the market price. Hence, CCI has been quoting higher prices than the market price and practically there was no off-take of cotton from the already cash-starved cotton yarn industry due to the low demand in domestic as well as global market.
Mr. Rajkumar also stated that the cotton industry has been continuously pleading with the Ministry of Textiles to sell the CCI procured cotton at market driven prices so as to have stability in the cotton market and protect the interests of the spinning mills as well and its downstream powerloom and handloom sectors who are largely dependent on the domestically manufactured cotton yarn.
Mr. Rajkumar hoped that the CCI move will not only increase the cotton yarn exports to the world but at the same time will also stimulate the demand for the Indian cotton in domestic as well as global market. He also opined that this would support the Government to reduce the losses on account of MSP as CCI is all set to procure around 90-110 lakh bales of cotton during the current cotton season.