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SIMA petitions Textile Minister to stop cotton price escalation

Published
today Jan 14, 2020
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The Southern India Mills’ Association requested that Minister for Textiles Smriti Zubin Irani review the Cotton Corporation of India’s trading policies to stop swiftly increasing cotton prices.

The SIMA hopes that the Textiles Minister will put a stop to rising cotton prices - Textile Sector Skill Council- Facebook

 
The SIMA asked Union Government Minister Irani to direct the CCI to sell its cotton at the market rate instead of higher as it is currently doing in order to halt rising cotton prices, ET Bureau reported. The SIMA stated that the CCI charges exorbitantly high rates for cotton compared to the market price which means that spinning mills cannot buy cotton from the organisation. 
 
The SIMA’s chairperson Ashwin Chandran opined that there is a great trade opportunity due to the likely end of the US-China trade war which could see China ready to import a large quantity of cotton from countries including India. The Union Government is working to increase exports in numerous sectors including textiles and related raw materials as part of its “Make in India” campaign. 

Chandran also told Irani that making the CCI’s cotton trading policy more suited to businesses would help to address current industry concerns and to capitalise on trading opportunities. The SIMA also warned that, if prices continue to rise, it could result in a panic situation in the domestic cotton industry.
 
 
 

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