Indian Texpreneurs Federation’s (ITF) Cotton Team has over the past 12 months partnered with over 50 ginners in Telangana, Maharashtra and Karnataka for procuring cotton on behalf of its members.

The exercise, according to Prabhu Dhamodharan, Convenor, ITF, has paid off as the member mills (35 out of ITF’s 400 members) were able to get timely supply of quality raw material at prices they would not have been able to procure as individual units.

Procurement costs

Raw material accounts for 60-70 per cent of the total manufacturing cost. Even a one per cent saving by way of timely supply of quality fibre at affordable rates would go a long way in reducing the manufacturing cost, he added.

ITF Cotton Team had procured 2 lakh bales last year, and is looking to double the volume in the upcoming cotton year.

The 35 mills consume about 11 lakh bales a year. (The current purchase by the consortium is only 2 lakh bales).

Ginners’ visit

Meanwhile, to understand the user industry’s need, trade dynamics and the mill sector’s purchase plans for the coming season, 25 ginners from Maharashtra and Telangana visited 12 member units in and around this region.

They were here to evaluate a strategy to focus more on contamination-controlled cotton. With a requirement of more than 1 crore bales of cotton by the mills in Tamil Nadu, there is a need for stronger partnership with cotton-growing States, said Dhamodharan.

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