SIMA Chief Advises Mills To Rely Only On Govt Agencies Forecast
The Southern India Mills Association (SIMA) has urged its member mills to plan their cotton purchase according to reports issued by the Committee on Cotton Production and Consumption (COCPC).
Dr SK Sundararaman, Chairman of SIMA has advised cotton textile mills to rely only on the estimates published by the Office of the Textile Commissioner, Ministry of Textiles.
“These estimates are based on the recommendations made by the Committee on Cotton Production and Consumption (COCPC) periodically,” he added.
Dr Sundararaman advised SIMA members and other cotton textile mills to ignore press statements or information given by any other body.
He pointed out that the International Cotton Advisory Committee (ICAC) has also stated that higher cotton prices are being driven by speculation and not based on fundamentals.
The SIMA Chairman stated that COCPC at its second meeting for the cotton season 2023-24 held on March 14, 2024 has projected cotton opening stock as 61 lakh bales.
Cotton crop has been forecast at 323 lakh bales, imports at 12 lakh bales, mill consumption at 301 lakh bales, non-mill consumption at 16 lakh bales, export at 27 lakh bales and closing stock of 52 lakh bales.
He further stated that these estimates are more scientific and advised all the stakeholders in the textile value chain to rely on COCPC data relating to cotton.
Earlier, he had advised mills to avoid panic buying when cotton price suddenly increased from Rs 55,300 to Rs 61,500 per candy of 355 kg each in February as the cotton supply position was very comfortable.
He again advised mills to be cautious while procuring cotton for inventory purposes.
