The South India Spinners Association (SISA) has advised the Cotton Corporation of India (CCI) to sell cotton primarily to cotton textile mills in the MSME sector from July 01.
Currently at a critical juncture, the textile industry in India is grappling with several financial struggles, says SJagadeshChandran, Secretary, SISA. This has led to several textile mills in Tamil Nadu ceasing operations due to financial crisis, high operational costs, and market volatility. Compounding these challenges is a notable decline in yarn and textile exports, as well as increased pressure from imports, he claims.
To mitigate this situation, the CCI needs to sell its stock of 24 lakh bales only to the MSME spinning mills for three months, opines Chandran.
Four months ago, as the cotton prices increased from Rs 58,000 to Rs 63,000 a candy, the industry requested the Ministry of Textiles and the CCI to abstain from selling cotton to traders. The ministry too advised the CCI to stop selling cotton to traders, leading to prices dropping to Rs 57,000 a candy and remaining stable for four months, he adds.
