TASMA asks textiles minister to prioritize CCI cotton sales for mills.

The Tamil Nadu Spinning Mills Association (TASMA) has appealed to Union Textile Minister Giriraj Singh to ensure that the Cotton Corporation of India (CCI) sells cotton procured under the minimum support price (MSP) programme exclusively to user mills until the season's end.

TASMA chief advisor K Venkatachalam emphasized a regulated sale of CCI’s stocks would help maintain the performance of the cotton textile value chain, particularly in export markets. The association had previously engaged with CCI, which required confirmation to lift stocks before July 15, a move that would incur extra costs for spinning mills. TASMA urged the minister to instruct CCI to hold onto the stocks and sell only to user mills until September.

Venkatachalam noted positive market indicators due to the upcoming festival season and lauded the government's March 13 policy that stabilized cotton prices, aiding the industry's export commitments. Currently, CCI holds about 20 lakh bales, enough for 22 days of consumption, with three months until new cotton arrives. Ensuring a steady supply of domestic cotton is crucial for price stability and export performance.

Highlighting India's status as a cotton-deficit country, Venkatachalam pointed out that speculative trading and high import duties are inflating cotton prices, adversely affecting exports and production.