Don't push govt to intervene on cotton bale pricing issue: Piyush Goyal

Textiles minister Piyush Goyal on Thursday cautioned cotton bale traders to refrain from price manipulation or resort to hoarding to make unfair profits, and said that no one should force the government to intervene.

Addressing textile industry in a meeting, he also told them to "resolve cotton pricing issue in the spirit of collaboration rather than competition".

"Too much dependence of state support is not healthy for the robust growth of the sector," the textiles ministry said in a statement. In the meeting held to resolve issues regarding cotton yarn prices between cotton yarn manufacturers and downstream textile industry, he said that farmers' interests are being taken care of for the first time as they are now getting better cotton prices supported by good base MSP.


Goyal insisted that pricing issue of cotton bales and yarn for the industry should not be allowed in any way to impact the better prices that farmers are getting. He said the idea of short-term supernormal profits by a section of players in textile value chain is not sustainable.

Emphasising that the entire value chain gets adversely impacted even if one section gets weak, he said no one should force the government to intervene.

"Let free and fair market forces play out. Supernormal profits should not be booked for short-term goals," he said.

India's cotton production is estimated at 362.18 lakh bales. The cotton season 2021-22 commenced from October with an estimated carryover stock of 73.20 lakh bales. Opening stock in the country is adequate to meet about two and a half month's mills consumption.