Government-owned Cotton Corporation of India (CCI) has so far sold 30 lakh bales of cotton this season, top officials said. -
July 04, 2015 Government-owned Cotton Corporation of India (CCI) has so far sold 30 lakh bales of cotton this season, top officials said. This includes 1 lakh bales exported to Bangladesh. So far, Bangladesh has emerged as the top importer. Next month, a delegation will be visiting Thailand to promote Indian cotton.
Sales have picked up in the last 10 days and CCI has been putting up 2 lakh bales for sales on a daily basis in addition to uploading a daily tender on its website for possible exporters, said BK Mishra, the chairman and managing director of CCI. Of the total procurement of 86.9 lakh bales, CCI has sold 29 lakh bales to domestic traders and mills and around 1 lakh bales to Bangladesh, he said.
India has been exporting directly to Bangladesh which is the third largest importer of cotton in the world, he added. CCI had earlier placed advertisements in light of criticism from mills which alleged they were not getting cotton from the body.
Earlier, industry body Ficci had sought the textiles ministry’s intervention for adequate and timely release of cotton by CCI saying it is required to ensure that the commodity is available to mills and industry at competitive rates.
“The role of CCI is primarily to ensure MSP (Minimum Support Price) operation for the farmers so that they get a remunerative price for their products. However, if the procured cotton is not released on time for the industry and is retained as a stock by CCI, it distorts the market and leads to artificial increase in prices, thereby making the user segment noncompetitive,” Ficci had said.
Without disclosing details, Mishra maintains that CCI has been getting attractive prices in the international markets. Market sources reveal that CCI has sold cotton at approximately 74 cents per lbs from its stocks. Prevailign domestic prices are currently at Rs 34,000 to Rs 36,000 per candy.
Mishra says CCI has made arrangements for exports from ports such as Benapur, Kolkata, Chennai and Mumbai and so far the response from traders reveals that Bangladesh has been the only buyer. Mishra had earlier said that the earlier advertisement by CCI inviting buyers to register themselves for export to Bangladesh had garnered a good response and 8-10 exporters had registered themselves with CCI in addition to some of the domestic buyers who exports as well. Bangladesh usually purchases around 55-60 lakh bales of cotton from India.
CCI choses Bangladesh since the logistics are better and are easier to manage either by the sea or roadways.China, the world’s biggest buyer, is importing less of the fibre from this year which has affected Indian export. China has been the largest importer of Indian cotton over the last three years.