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The Centre proposes to merge the Jute Corporation of India Ltd (JCI) with the Cotton Corporation of India Ltd (CCI) to create a bigger public sector entity to carry out procurement operations of all textile fibres. To this extent, a request for proposal (RFP) has been floated to appoint a consultant for merger of both the PSUs under the Ministry of Textiles.
“There is a proposal by the Government of India to merge the JCI with the CCI, both being public sector undertakings. A new entity with a wider scope of business covering developments of all types of textile fibres is to be constituted,” the RFP document said. Confirming the development, sources said the proposal was in the very early stages.
Set up in 1971, JCI has been a price support agency for procurement of raw jute/mesta from growers at the minimum support price (MSP) declared by the government. JCI’s presence in the market has been providing stability to raw jute prices, protecting the interests of about four million families, engaged in jute farming.
According to latest financials disclosed on the JCI website, the PSU had clocked a turnover of ₹169.25 crore and profit after tax of ₹15.39 crore during 2019-20. It had procured about 1 lakh bales of jute during 2019-20 and was projected to purchase 0.79 lakh bales during 2020-21.
Similarly, the CCI established in 1970 under the Textiles Ministry, has been undertaking price support operations, whenever the market price of cotton falls below the MSP, providing a safety net to the growers. An estimated 58 lakh farmers are engaged in cotton cultivation in the country, which accounts for about a fourth of the global output.
Besides MSP operations, CCI, which has some 750 employees, also undertakes commercial purchase operations to fulfil the raw material requirement of the domestic textile industry.
In the last two cotton seasons (2019-20 & 2020-21), CCI procured around one-third of the cotton produced in the country, that is about 200 lakh bales and disbursed more than ₹55,000 croresdirectly in the bank account of around 40 lakh cotton farmers. In November, the Centre had approved MSP funding of ₹17,408 crore to CCI for cotton seasons 2014-15 to 2020-21 for dipport toe farmers.
As per the Textiles Ministry annual report for 2020-21, CCI had clocked a turnover of ₹6452.23 crore and a PAT of ₹38.07 crore during 2019-20. In the previous year 2018-19, CCI had posted a turnover of ₹2832.45 crore and profits of ₹50.99 crore. CCI had procured 84.51 lakh bales of cotton during 2019-20 as against 11.03 lakh bales in the previous year. (en
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