South Indian Spinning Association sent a letter to Minister Giriraj Singh urging to halt cotton stock sales to traders, aiming to stabilize market prices amidst surging export orders.
Coimbatore: The South Indian Spinning Association (SISA), through its secretary Jagadeesh Chandran, has dispatched a crucial letter to Giriraj Singh, Minister for Textiles, requesting an immediate suspension of cotton sales to traders. This move is aimed at stabilizing cotton prices that have experienced significant volatility in recent months.
In his letter, Chandran pointed out the closure of numerous spinning mills due to financial constraints and the renewed operation of many others thanks to an increase in apparel export orders. This revival in mills has accelerated the demand for cotton, making the current stock of 24 lakh bales crucial for production needs.
Additionally, the association has highlighted a sharp increase in cotton prices over the last four months. From an average of Rs 58,000 per candy, the price had surged to Rs 63,000, prompting SISA's initial request to the ministry to restrict sales. This move by the Cotton Corporation of India (CCI) to halt sales to traders helped maintain a stable price at Rs 57,000 per candy.
If sales to commercial traders resume, SISA warns that prices could spike again, potentially destabilizing the market further. Therefore, they have suggested that from July 1, MSM Spinning Mills should maintain unsold cotton stocks for three more months to provide for spinning mills, ensuring a steady supply chain and price stability.
The association's proactive approach reflects a broader strategy to support the textile industry's growth while balancing market dynamics and production needs.
In his letter, Chandran pointed out the closure of numerous spinning mills due to financial constraints and the renewed operation of many others thanks to an increase in apparel export orders. This revival in mills has accelerated the demand for cotton, making the current stock of 24 lakh bales crucial for production needs.
Additionally, the association has highlighted a sharp increase in cotton prices over the last four months. From an average of Rs 58,000 per candy, the price had surged to Rs 63,000, prompting SISA's initial request to the ministry to restrict sales. This move by the Cotton Corporation of India (CCI) to halt sales to traders helped maintain a stable price at Rs 57,000 per candy.
If sales to commercial traders resume, SISA warns that prices could spike again, potentially destabilizing the market further. Therefore, they have suggested that from July 1, MSM Spinning Mills should maintain unsold cotton stocks for three more months to provide for spinning mills, ensuring a steady supply chain and price stability.
The association's proactive approach reflects a broader strategy to support the textile industry's growth while balancing market dynamics and production needs.