The Confederation of Indian Textile Industry (CITI) has welcomed the move by the Cotton Corporation of India (CCI) for introducing the Bulk Quantity Discount Scheme for the sale of cotton procured during the 2018-19 season, saying the decision will offer a much-needed boost to the country’s cotton Industry starved of raw cotton and facing declining export of cotton yarn.
The move will raise India’s share of world exports, CITI chairman T Rajkumar said in a statement issued in Coimbatore.The Confederation of Indian Textile Industry has welcomed the move by the Cotton Corporation of India for introducing the Bulk Quantity Discount Scheme for the sale of cotton procured during the 2018-19 season, saying the decision will offer a much-needed boost to the country's cotton Industry starved of raw cotton and facing declining export of cotton yarn.#
The scheme offers an attractive discount of ₹4,400 per candy on purchase of 10,000 bales a day and also ₹3,200 per candy even for a small quantity of 500 bales.
During fiscal 2019-20, the export of cotton yarn declined by more than 30 per cent due to which there was a very limited demand of raw cotton that discouraged not only cotton spinners but also CCI, which could not sell the cotton procured in that season to the tune of nine lakh bales due to drop in cotton prices, Rajkumar said.
The cotton industry has been continuously pleading with the ministry of textiles to sell the CCI-procured cotton at market-driven prices so as to have stability in the cotton market and protect the interests of the spinning mills as well and its downstream power loom and handloom sectors, which are largely dependent on domestic cotton yarn, he added.
Fibre2Fashion News Desk (DS)
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