The Hindu Business Line : Cotton Corpn sees higher consumption

Coimbatore, Aug. 21 Cotton Corporation of India (CCI), which is anticipating the spinning sector to recover the lost ground by the end of the third quarter, expects a higher cotton consumption by the mills, more than last year.

This will stimulate the cotton demand in the domestic market which is expected to be good this year, according to Mr S.C. Grover, Chairman and Managing Director of CCI.

The net mill consumption is expected to go up to 265 lakh bales in the coming season from the current 240 lakh bales.

“We feel the necessity for CCI to go in for minimum support price (MSP) operation will not arise in the new season,” Mr Grover told Business Line.

On the cotton production and marketing plank, he felt with Bt cotton acreage this year estimated to be above 60 per cent, the yield would be higher giving volume-led pricing for farmers who are also expected to gain more on quality of cotton produced by them. The higher cotton output would support the spinners in the form of stable prices as he did not expect the prices to be volatile either. This may turn out to be a win-win situation for both the growers and consumers.

According to Mr Grover, the cotton yarn market currently seeing a slackened demand will revive beyond September.