The Hindu Business Line : NSIC may take the consortium route for bulk purchase of yarn

The corporation is exploring the possibility of entering into a tie-up with some major yarn producers in the region who can commit a specified quantity to be supplied regularly to the end-user - textile/garment producing units joining in the `yarn consortium'.

NSIC sources told Business Line that it would act as a single purchaser for these units. It would for this purpose take `end-to-end' minimum commitment from the user industries for lifting a certain assured quantity of cotton yarn under the consortium arrangement. This would entitle the textile producers to a share in the bulk cash discounts the NSIC's purchases would command from the yarn producers.

The corporation is keen to give the `yarn consortium' a try as part of its raw material consortium planning for SSIs. The sources said that considering the sensitivity of the yarn transactions and the need to ensure payments, the corporation may opt initially for the bank-guarantee/advance payment based yarn transactions and the payment would include the minimum service charges to be borne by the SSI units buying yarn through the NSIC.

While the small-scale textile producers procuring cotton yarn through the NSIC's raw material consortium window would stand to get the bulk discounts, which would be distributed on quarterly basis, the yarn suppliers tying up with the NSIC would get an assured market for their yarns.

The bulk discount to be offered under this window would vary depending on the volume of yarn to be lifted over and above the assured minimum offtake promised by the consortium leader, in this case the NSIC.

NSIC, as part of its raw material consortium (under the umbrella Raw Material Assistance scheme for the SSI), is supplying to the SSI engineering units the bulk purchase of copper/aluminium for which it has tie-ups with National Aluminium Company, Bharat Aluminium Company and Sterlite Industries.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Plea to ensure jobs for TN farmers

Dumping duty imposed on caustic soda

Who rules the automobile market really?

`Cement units must focus on exports'

CII, Sudanese chamber set up task force

`Indian position on trade lacked consistency'

Oncology meet at Kochi

Scope for more pharma exports — India-Africa Health Summit today

CERC's `Open Access' system may not bring immediate changes

Revival in textile sector to benefit express cos

Plea to check rise in hank yarn prices