Gujarat spinners urge CCI for depot sale scheme from March 2025

The Cotton Corporation of India (CCI) is set to purchase significant volumes of cotton this year due a dip in market prices below the Minimum Support Price (MSP). Responding to this, Gujarat's spinning mills have urged CCI to introduce a depot sale scheme starting March 2025 to ensure market stability and support domestic mills, particularly MSMEs.

Jayesh Patel, Senior Vice-President of the Spinners Association Gujarat, says Indian cotton is more expensive than Brazilian, American, and African counterparts, which has made it challenging for spinners to stock cotton for over two years. He noted that while CCI's MSP purchases benefit farmers, introducing a depot sale scheme would help stabilize market prices and ensure continuous operations for mills.

Gujarat, being a leading cotton producer, may see CCI stockpile 35-50 per cent of its crop. In a letter to CCI, the association highlighted the urgent need for timely data on stock availability and strategic decisions to curb market speculation. The depot sale scheme, they argue, would foster a transparent business environment and help MSMEs plan operations effectively.

If implemented, the scheme could play a pivotal role in ensuring price stability, enhancing collaboration with CCI, and sustaining the state's textile industry.