E-auction of balance unsold stock of Cotton Corp of India to SSIs commences

New Delhi, Aug 5 (KNN) The online auction of the balance unsold stock of the Cotton Corporation of India (CCI) has commenced from August 2 to the Small Scale Industries (SSI) registered with the office of Textile Commissioner and the Government Co-operative mills which are fully dependent on them for their cotton requirements, the Parliament was informed.

The recent spurt in cotton prices has resulted in higher input costs for the spinning sector in the country leading to some financial stress.

Accordingly, Ministry of Textiles has decided and directed Cotton Corporation of India CCI to sell its existing stock purchased under Minimum Support Price (MSP) to Spinning Mills in the Micro, Small & Medium Enterprises (MSME) category only.

The financial assistance provided to Textile units under Technology Upgradation Fund Scheme (TUFS) by way of Interest Reimbursement/Capital Subsidy is marginal as compared to the loan amount received by them from Banks, said the Minister of State for Textiles, Ajay Tamta in a written reply to a Lok Sabha question.

Under Modified Technology Upgradation Fund Scheme (M-TUFS), subsidy has been released upto the quarter ending March, 2016. Under Revised Technology Upgradation Fund Scheme (R-TUFS) and Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS) subsidy has been released upto the quarter ending December, 2015.

In order to ease the situation, CCI has started to sell its stock to SSI spinning mills. (KNN Bureau)