Cotton Corporation Of India Urged To Prioritise MSME Textile Mills In Cotton Sales

ENA Sectors 2024-06-27 17:28:21 New Delhi, Jun 27 (KNN) The South India Spinners Association has called upon the Cotton Corporation of India (CCI) to give preference to textile mills in the Micro, Small, and Medium-scale Enterprises (MSME) sector when selling cotton, starting July 1. In a statement, Association Secretary S. Jagadesh Chandran highlighted the current challenges facing the textile industry, including financial stress, high operational costs, and market volatility. He noted that several mills in Tamil Nadu have suspended operations due to these issues, exacerbated by declining exports and increased import competition. The Association has requested that the CCI's stock of 24 lakh bales be exclusively sold to MSME spinning mills for a three-month period. Chandran argued that selling to traders often leads to speculative practices, which can negatively impact the industry. Chandran cited a recent example from four months ago when cotton prices surged from Rs 58,000 to Rs 63,000 per candy. Following industry requests, the Ministry of Textiles advised the CCI to halt sales to traders. This action reportedly resulted in cotton prices stabilising at Rs 57,000 per candy for the subsequent four months. The Association maintains that prioritising sales to MSME mills could help alleviate some of the financial pressures currently facing the textile sector. (KNN Bureau) 38380 https://knnindia.co.in/news/newsdetails/sectors/cotton-corporation-of-india-urged-to-prioritise-msme-textile-mills-in-cotton-sales 2024-06-27 17:28:21 knnindia.co.in Cotton Corporation Of India Urged To Prioritise MSME Textile Mills In Cotton Sales