Spinning mills hail Centre’s direction to CCI to sell stocks directly to SMEs

Coimbatore, July 18 (KNN) Thanking the new Textile Minister Smriti Irani for her pro-active step to check cotton prices in the country, the Southern India Mills' Association (SIMA) has said that the spur in cotton prices has resulted into higher input costs for spinning mills.

The Textile Ministry’s intervention of directing the Cotton Corporation of India (CCI) to sell the stocks with it directly to the small and medium spinning units has been hailed by the industry.

Talking to KNN, General Secretary, SIMA, Dr.K. Selvaraju said, “They have just started to check the cotton prices, but I think it would not have any immediate effect.”

The move would enable small spinners to procure cotton from CCI at rates lower than the prevailing market rate. The association earlier advised the SMEs to avoid “panic” saying that the prices would soften.

Last week, the Textiles Commissioner assured the government about the cotton stock available in the country and said that opening balance is expected to be 43 lakh bales on 30th September, 2016.

SIMA General Secretary said  that currently the mills have adequate cotton. He pointed that the mills would be importing cotton for the next 2-3 months to avoid buying at higher prices.

SIMA was optimistic that the issue is likely to get addressed by next month or in next 2-3 months.(KNN/ AR)