The government on Wednesday has directed the Cotton Corporation of India to increase its purchase from the major producers, including Gujarat and Maharashtra as cotton prices have plunged below the minimum support price fixed by the Centre due to an expected bumper harvest.
Prices have also slumped below the MSP in many places because of weak global markets , which has stopped exports.
The two states — Gujarat and Maharashtra — account for almost 80 per cent of the total cotton produced in the country. The cotton production in India is expected to be around 34.62 million bales, down from 36.5 million bales last year. However, the estimates seem to be on the conservative side as late rains pushed up harvest. The estimates were released in September.
Textiles Minister Santosh Gangwar and Commerce Minister Nirmala Sitharaman, too, participated in the meeting with the Agriculture Minister Radha Mohan Singh. The CCI has been instructed to step up its procurement operation by opening more centres wherever necessary and collect cotton from the farmers’ doorsteps. The CCI’s aggressive intervention will prevent distress sale by farmers.
According to the CCI, production in India in 2014-15 is expected to be around 40 million bales, while the opening stock for the season is expected to be around 6 million bales making a total supply during the season of around 46 million bales.
However, domestic consumption is estimated at 30 million bales, making a surplus of around 1.7 million bales. A weak export market has made absorption of this surplus difficult.
The CCI has so far purchased around 2,50,000 bales of cotton (1 bale = 170 kg) in the current season, mainly from the southern states. The cotton season runs from October to September.
The central government has fixed a minimum support price (MSP) of Rs 3,750 per quintal for medium staple cotton and Rs 4,050 per quintal for long staple cotton for the 2014-15 season.
Avavav has continued its exploration of innovative materials by presenting new garments made with recycled viscose pulp from OnceMore during…
Vegea has increased the production capacity of its biobased material, GrapeSkin, as interest grows in alternatives to fossil-based and animal-derived…
Puma has announced a partnership with Chinese materials company Shincell to develop the next generation of its NITRO running foam.
Thermore, a company in thermal insulation, has introduced Ecodown Fibers T2T. The new free-fibre insulation is produced entirely from recycled…
Eurojersey, Lycra have collaborated to launch Empowered Play, a new approach to functional apparel where technical performance and comfort come…
Graphene-X has introduced its first women’s clothing collection, expanding its use of graphene-integrated fabrics beyond the men’s and unisex products.