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In a bid to trim its bulging stocks and to ensure availability of raw material to the spinning mills at competitive prices, Cotton Corporation of India (CCI) modified its discount scheme on Monday by rationalising the prices.
“To serve the twin objective of helping farmers and also the spinning mills, we have rationalised prices,” said PK Agarwal, Chairman and Managing Director, CCI. The rationalisation has brought CCI cotton prices closer to the market level.
“Our prices are now in parity with the market,” Agarwal told BusinessLine . The good quality cotton in the market is ranging between ₹35,000 and ₹36,000 per candy. “Our quality 29 mm cotton is priced at ₹36,200-36,500,” Agarwal said.
Under the new scheme, which will be in force till June end, CCI has set the lower base price ranging from ₹35,600 to ₹37,500 a candy of 356 kg each. A discount of ₹300 is being offered for minimum purchase of 500 bales per day. Higher discount of ₹1,200 is being offered for purchase of over 2 lakh bales per day.
Prices under the new scheme are still on the higher side by about ₹1,000 per candy, said Ramanuj Das Boob, a sourcing agent for mills. “Demand for CCI cotton may pick up once arrivals slow down in the days ahead,” Boob said.
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