SIMA seeks PMO intervention to check cotton prices

AHMEDABAD: The Southern India Mills' Association has sought intervention of the PMO to maintain prices of the cotton-dependant textile value chain in the country. SIMA on Monday sought intervention of the Prime Minister, Finance Minister and Textile Minister to offload cotton held by CCI to domestic mills " to stabilize the yarn prices in the country."

SIMA said CCI and NAFED purchased over 25 lakh bales of cotton as part of MSP operation at prices 15-20% lower than current market prices. Shankar-6, the most popular variety of cotton costs Rs 39,000 per candy against Rs 33,000 at the beginning of the crop year.

SIMA said 50 to 60 lakh bales are still held by large treaders and CCI has created an artificial shortage in the market. "The textile industry has been pleading the CCI to offload the cotton stock held by it and also requested the government to direct CCI to sell cotton to domestic mills. Since the government is delaying the decision, the cotton prices continue to increase," SIIMA stated a press statement.