The Southern India Mills' Association today thanked Union Textile Minister Smriti Irani for actively considering their plea to sell cotton only to the actual users.
In a communication to Irani and textile ministry officials, SIMA Chairman M Senthilkumar hailed the 'proactive decision', which, he said, would bring stability in the cotton price during the off season.
Moreover, the decision of selling balance quantity of cotton available with Cotton Corporation of India only to the MSME category spinning mills would bring some stability in prices and also meet raw material needs of smaller mills.
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The spot price of benchmark cotton variety Sankar-6 has increased over 45 per cent from Rs 33,000 per candy in April and is ruling now at Rs 48,000 resulting in an increase of Rs 60 per kg of clean cotton used for combed count yarns, he said.
In view of the textile industry's pleas, Irani today directed CCI to sell the entire balance quantity of cotton available with it only to MSME category spinning mills registered with the office of the Textile Commissioner.
Senthilkumar said it appeared the Ministry might also direct CCI to sell its cotton only to spinning mills in the future.
