Cotton Association of India (CAI) has urged the Cotton Corporation of India (CCI) not to use its inventory to control prices in the market.
“The CCI should not support the private textile industry alone. It should sell cotton to any entity – be it a mill, trader, exporter or foreign buyer, whoever offers the highest price for its cotton on a given day,” said Dhiren N. Sheth, President, CAI.
“Government bodies have sold extremely few bales in the last few months resulting in an artificial shortage of cotton supply,” he explained.
“Despite surplus cotton production estimates, India has been forced to look to other countries to meet its demand,” Sheth said, adding that CCI should reduce the loss to the exchequer and, therefore, sell cotton to the highest bidder. “It needs to decide on a sales policy keeping in mind the massive loss suffered due to the defaults committed by several of its clients a few years ago,” he added.
According to a CAI press release, cotton prices in the domestic markets have risen 10 to 12% since the season started in October, while international prices have gone up by 20%in the same period.