Cotton Corporation inks pact with NTC to set up ginning mill in AP

The Cotton Corporation of India (CCI) has signed a memorandum of understanding with National Textile Corporation (NTC) to set up a ginning-cum-pressing mill in Andhra Pradesh. CCI plans to acquire 7.17 hectares (ha) of NTC’s land on lease.
 
B K Mishra, Chairman and Managing Director, CCI, said, “We procure around 1,00,000 tonnes of cotton in this area out of its total production of around 4,00,000 tonnes. Hence, cotton would be adequately supplied to our forward integration unit. Initially, we are looking at setting up a pressing and ginning plant with 60,000-tonne capacity. Besides, the company plans to set up a warehouse with a capacity of 100,000 tonnes for storage of cotton.”
 
The company has earmarked Rs 20 crore for these projects. The company, which also deals in commercial cotton trade, has sought expansion of area of activity to enable procurement of jute and other agricultural commodities.
 
The Cotton Corporation of India procured 441,000 tonnes of cotton so far this year of which around 90% was for commercial use. The remaining 10% to the tune of 40,000 tonne of cotton was procured under market intervention scheme.
 
"We get an opportunity to procure huge quantity of cotton at the minimum support price (MSP) once in four years. In the remaining period, therefore, we execute commercial cotton procurement. Forward integration would certainly help us test the market and set a benchmark for yarn and fabric industry in India," said Mishra.