SIMA urges textile mills to relly on ministry's cotton data.

The Southern India Mills Association (SIMA) Chair, S K Sundararaman, urged cotton textile mills to rely solely on official cotton supply estimates published by the Office of the Textile Commissioner (OTC). These estimates are based on recommendations by the Committee on Cotton Production and Consumption (COCPC). Mills were previously advised to avoid panic buying due to a sudden price hike in February (Rs 55,300 to Rs 61,500 per candy). The COCPC assures a comfortable cotton supply, with estimates for the 2023-24 season indicating:

Opening stock: 61 lakh bales

Crop: 323 lakh bales

Imports: 12 lakh bales

Mill consumption: 301 lakh bales

Non-mill consumption: 16 lakh bales

Exports: 27 lakh bales

Predicted closing stock: 52 lakh bales

SIMA emphasizes the scientific nature of these COCPC estimates and urges all stakeholders to rely on them. Sundararaman criticized price volatility caused by speculation, highlighting that while Indian cotton prices are influenced by global markets (ICE, Cotlook A, MCX), speculators artificially inflate prices. He commended the Cotton Corporation of India (CCI) for enforcing fair quality standards and promoting the "Kasturi Cotton Bharat" brand. He also praised the Cotton Textiles Export Promotion Council (TEXPROCIL) for implementing fiber origin tracing and brand promotion efforts. He expressed hope that the "Kasturi" brand will command a premium and urged mills to collaborate on its development. Sundararaman also lauded the CCI's prioritization of actual cotton users, particularly MSMEs. He credits the CCI's intervention and trading policies with calming market fears.