SIMA asks CCI to commence MSP operations in Tamil Nadu

With Tamil Nadu likely to produce six lakh bales of cotton this season, Southern India Mills' Association (SIMA) has asked the Centre to direct Cotton Corporation of India to get ready for MSP operations in the state.
CCI has not undertaken any commercial or MSP operations in Tamil Nadu in last 20 years as the state was one of the lowest cotton producing states, SIMA said in a statement here.
Against the background of current market prices of kapas (seed cotton) ruling much lower than MSP and arrivals likely to pick up soon, CCI can begin MSP operations in Tamil Nadu, SIMA Chairman T Rajkumar was quoted as saying in the statement.

The Tamil Nadu government has allocated Rs 50 crore to set up a Cotton Cultivation Mission to increase production from six lakh bales to 30 lakh bales and the government has involved SIMA in implementing the programme jointly across the state, he said.
Though India is likely to export around 90 lakh bales this season and consume around 300 lakh bales, leaving a safer closing stock, the international cotton scenario and Chinese cotton policy are worrying factors for the cotton community, he added.
Rajkumar said both central and state governments should take steps and make CCI intervene and commence MSP operations to sustain the confidence of farmers and help the state make substantial progress in Cotton Cultivation Mission.

SIMA has sent a representation to the Chief Minister of Tamil Nadu appealing to insist the Centre to direct CCI to undertake MSP operations in the state.

Since MSP of Indian cotton is much higher than New York Futures, the international price and its poor offtake has seriously affected Indian farmers this cotton season, he said.
The Centre has already directed CCI to allocate necessary funds to procure over 100 lakh bales in the current season under MSP operations.
Of around 170 lakh bales which arrived in market, CCI has covered around 50 lakh bales, predominantly from Telangana, Rajkumar added.