Cotton price to stabilize soon with arrival of produce at the markets

The textile industry affected by the fluctuating price of cotton due to seasonal change, drought and floods is expected to see stabilization in cotton price in the first week of September when more produce arrive at the markets, said Textile Minister O.S. Manian replying to a special calling attention motion in the Assembly on Friday.

The Minister said that the State government was taking action to bear the financial burden and the situation was expected to improve with the next produce scheduled to arrive at the markets in the first week of next month.

The State government is also urged to set up a State-level body similar to the Centre’s Cotton Corporation of India for procuring cotton from producers during the off season and storing it to tide over situations like these.

In a detailed report tabled in the House, the Minister alleged that the situation was also due to the removal of cotton from the Essential Commodities Act by the Centre in February 2007.

However, the Minister maintained that the present situation was “temporary” and added that it would ease once the new produce arrived at the market.