Agri Business

Cotton body urges CCI to offload stocks

Our Bureau Mumbai | Updated on March 27, 2015 Published on March 27, 2015

The Cotton Association of India has urged the Cotton Corporation of India, which procures cotton as part of the Government’s Minimum Support Price programme, to formulate a policy to offload the stock in the market.

CCI needs to start making sales aggressively as they still hold a substantial portion of cotton procured by them this season, said Dhiren Sheth, President CAI.

If the entire quantity of cotton held by the CCI is to be sold during this season (ie by September 30), then it has to offload about 15 lb every month. There is a strong risk of triggering support price operations in the next season also if too much of stock is carried for long, he added.

In its February estimate, the Association has estimated cotton output of 396 lb (of 170 kg) against last year's 407 lb. Including an expected carry forward stock of 59 lb (53 lb) and imports of 11 lb (12 lb), the cotton supply is expected to touch 466 lb against a demand of 310 lb (413 lb), it said.

Published on March 27, 2015
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