SIMA's Plea to Sell Cotton in Small Lots

Published: 09th July 2015 03:48 AM  |   Last Updated: 09th July 2015 03:48 AM   |  A+A-

COIMBATORE:The Southern India Mills’ Association (SIMA) has urged the Centre to advise the Cotton Corporation of India (CCI), to sell cotton in smaller lots, to help small and medium mills to meet their demand.

Small and medium spinning mills are now finding it difficult to buy cotton from CCI and complaints are ‘pouring in’ to the association, SIMA Chairman T Rajkumar said in a release on Wednesday.

Between June 24 and July 1, CCI offered 10.21 lakh bales, of which only around 20,000 were of lot size 500 and below, less than two percent of the total. This prevents small and medium mills from participating in the e-auction. Of the 3,100 spinning mills in the country, 1,325 are in the SSI category. Even in the non-SSI category, the average number of spindles is only 25,000 per mill. Such a mill would need less than 75 bales per day. The CCI should offer more lots in smaller sizes and give priority to the small and medium mills.

Rajkumar said, the association has sent a representation to Union Minister of State for Textiles Santosh Kumar Gangwar, to look into the CCI’s e-auction policy and instruct it to offer at least 50,000 bales, keeping lot sizes flexible in multiples of 100 bales, at each centre and in each cotton variety.

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