Indian Textile Ministry announces new initiative for procuring cotton from CCI
Union Textile Ministry has announced unique terms and conditions for procuring fully pressed cotton bales from Cotton Corporation of India (CCI) for the benefit of MSME textile units. A total of 26 textile association and almost the entire cotton based textile industry in the region has thanked the Ministry for the new scheme
The new terms and conditions facilitates the registered MSME textile units to procure cotton by paying only 10 % deposit money as against 20 %, which was applicable only for the sale quantity of 30000 bales and above, said Chairman of Southern India Mills’ Association (SIMA), Senthilkumar in a release.
Earlier there was a difference in the free period, ranging from 30 to 75 days and 75 days free period was available for procurement of 15000 bales and above, depriving MSME textile the benefit. The free period now has been made uniform and fixed at 45 days, which would again help actual users and the MSME units.
The deposit money up to 2999 bales is only 15 %, which would greatly help the units that are starving for working capital funds in the post-demonetization regime, Senthikumar said.
Senthilkumar said that the industry requested CCI to opt for coastal movement of bales between Gujarat and Tamil Nadu that would again yield considerable savings for mills.
SIMA has finalized the rates with a company for the entire cotton season 2016-17, which is cheaper by 10 to 25 % when compared to lorry freight.