As the Cotton Corporation of India (CCI) increases its cotton purchases this year due to low market prices, spinning mills in Gujarat are urging the corporation to launch a depot sale scheme starting March 2025. Spinners believe this scheme is crucial for price stability, and will help small and medium-sized enterprises (MSMEs) operate smoothly.

Jayesh Patel, Senior Vice President, Spinners Association Gujarat says, Indian cotton is currently the most expensive compared to global benchmarks like Brazilian, American, and African cotton. These high prices have been preventing spinners from stocking Indian cotton for the past 28 months. While CCI's MSP purchases support farmers, the Corporation needs to implement a depot sale scheme to stabilize the market, he adds.

In recent years, higher cotton prices have driven spinners towards open market purchases, notes Patel. However, with CCI expected to stock 35-50 per cent of Gujarat's cotton crop this year, the the depot sale scheme will help stabilize market prizes and support MSME mills facing stock shortages, he explains.

Further emphasizing on the importance of transparent communication regarding CCI's stock levels and any strategic decisions that may impact the depot sale scheme's implementation, Patel says, timely access to this information will prevent market speculation and foster a more transparent business environment for members of the association.