South India spinners demand direct CCI allocation to curb price speculation

The South India Spinners’ Association has appealed to the Cotton Corporation of India (CCI) to prioritize direct raw material allocations for spinning mills, to insulate the sector from aggressive bulk procurement by private traders. As domestic cotton prices breach the Rs 60,000 per candy threshold this April, the regional industry is grappling with a liquidity crunch and reducing conversion margins.

Analysts observe, while the Cotton Association of India recently increased its production estimate to 324 lakh bales, the concentration of quality lint in the hands of intermediaries has triggered an artificial supply squeeze. This market distortion has left small and medium-sized spinning units, which lack the capital for large-scale inventory stockpiling, in a precarious operational position. Representatives of the association argue, a dedicated direct-sale window for actual users is essential to maintain price stability and ensure the steady production of yarn for the downstream apparel export market.

Without a transparent, mill-first procurement framework, the soaring cost of raw fiber will inevitably stall the production of value-added textiles, say experts. This friction arrives as the industry prepares for the Bharat Tex 2026 summit, where the global competitiveness of Indian yarn will depend heavily on stabilizing these foundational raw material costs.

South India Spinners’ Association represents hundreds of spinning units primarily located in Tamil Nadu, the hub of India’s textile manufacturing. The association advocates for favorable trade policies, manages labor relations, and tracks yarn market trends. By focusing on modernization and sustainable procurement, members aim to dominate the global high-count cotton yarn market.