New Delhi, Mar 14 (KNN) The Khadi and Village Industries Commission’s (KVIC) has ensured that Khadi institutions across the country remain unaffected by the price rise with the help of Products Price Adjustment Account (PPA), a Reserve Fund for its 5 Central Sliver Plants (CSPs), to meet market-driven eventualities.

CSPs purchase cotton and convert them it into sliver and roving for the supply of Khadi Institutions, which converts it into yarn and fabric. 

The PPA fund was created by transferring just 50 paise to it fr0m each kilogram of the total sliver/roving soldby these CSPs.

The entire textile sector is facing the brunt of short-supply and a steep hike in the price of raw cotton, while KVIC has decided not to increase the cost of sliver/roving being supplied to the Khadi institutions by its sliver plants across the country despite the cotton prices surging by over 110 percent. 

Instead, KVIC will bear the excess cost of Rs 4.06 crore on procurement of raw cotton bales at the increased rates fr0m the PPA Fund.

KVIC largely purchases cotton bales fr0m Cotton Corporation of India (CCI) for its 5 CSPs located at Kuttur, Chitradurga, Sehore, Raebareli and Hajipur, that convert various varieties of cotton into sliver and roving. 

KVIC will require 6370 cotton bales of different varieties by 31st of March 2022 which, as per the current rate, will cost Rs 13.25 crores as against Rs 9.20 crores as per the old rates.

The price difference of Rs 4.05 crores will be met fr0m the PPA reserve created by KVIC in these days.

KVIC Chairman Vinai Kumar Saxena said that this decision would save both the Khadi institutions as well as the Khadi buyers fr0m any adverse impact of price rise.”

The price of raw cotton has increased fr0m Rs 36,000 per candy to Rs 78,000 per candy (each candy weighs 365 KG) in the last 16 months. 

This has put a direct impact on production of cotton apparels by major textile companies across the country,that have also reduced the production by 30 to 35 percent in the recent months. (KNN Bureau)