The Textile Ministry’s direction to CCI to sell the entire balance quantity of cotton only to MSME category spinning mills was also leading to speculation of prices and availability, an industry body has said.
Since the directive will give a boost to “Make in India”, a fresh study should be carried out to know how the domestic textile industry can use CCI for its benefit and bring in reforms to suit today’s changing global environment, Secretary of Indian Texpreneurs Federation (ITF) Prabhu Dhamodaran said.
The body has suggested that there is a need to bring in reforms in Cotton Corporation India (CCI) in the wake of the Textiles Ministry direction.
Stating that many in the industry strongly believed that CCI selling cotton to traders was also leading to speculation of prices and availability, Prabhu said.
However, he lauded the decision saying, the ministry has taken a right direction to support millions of farmers and also industry, which is giving employment to millions of workers.
India, being the leading producer of cotton in the world, should use the homegrown cotton in its favour of manufacture and export value added products, he added.
But being a seasonal commodity, many in the trade are creating speculation, which leads to artificial price rise in middle and end of the cotton season on a yearly basis.
There has been a rise of 35 per cent in cotton prices in the last 80 days in India, whereas world cotton was available 23 per cent cheaper, Prabhu said urging the ministry to take steps to strengthen domestic textile sector.