Govt to sell cotton stocks to stem shooting prices

Government today decided that the Cotton Corporation of India (CCI) will sell its existing stock purchased under minimum support price to MSME spinning mills on account of recent spurt in cotton prices.
The Textiles Ministry in a statement here said the recent jump in cotton prices has resulted in higher input costs for the spinning sector in India.
Cotton prices had reached a high of Rs 35,000 per candy (356 kgs) in May this year. The CCI, which buys cotton from farmers when rates go below the support prices, had said that it had procured 8,40,000 bales up to May this year.

According to Textiles Commissioner Kavita Gupta, the opening balance is expected to be 43 lakh bales as on September 30, 2016.
"In view of this situation, the government reviewed the situation and decided (that) CCI will sell its existing stock, purchased under MSP, to spinning mills in the MSME category only," it said.
This would be based on firm indents by such MSME spinning textile units registered with the Office of Textile Commissioner, it added.

On sowing, it said the representative from the Department of Agriculture has informed that 75.41 lakh hectare of sowing has taken place as on July 15 (October-September crop year)as against normal sowing of 78 lakh hectare in the corresponding period of the previous year.

It also said the Department of Agriculture is taking steps to manage whitefly attack on cotton in 2016-17, in the northern states.
A central team has been assigned to monitor whitefly infestation and management. Advisories have also been issued to states in this regard.