July 13, 2024

High Price Bids For CCI Cotton Irks South Indian Textile Mills

The President of the AP Textile Mills Association Koti Rao has alleged that the price of cotton sold by the Cotton Corporation of India (CCI) went up to Rs 62,000 a candy of 356 kg each.

“A few people have hiked the prices when they bid for cotton sold by the CCI. But the viable price of cotton for mills should be about Rs 58,000 a candy,” Koti Rao told the Hindu.

The recent hike in cotton prices in the international market and of cotton sold by CCI in the domestic market has become a matter of concern to textile mills, especially small-scale units.

“Current Indian cotton prices are lower than international prices by almost Rs 4,000 a candy,” Atul Ganatra, President of the Cotton Association of India (CAI) refuted by saying.

Ganatra also expects cotton exports this season to be almost two million bales of 170 kg each.

He added that about 65 percent of the Indian cotton crop or 20 million bales have arrived in the market and the domestic demand is very good.

According to Koti Rao, there is hardly any sign of revival of the textile industry and if the current situation persists, more textile mills will close down.

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