Cotton Corporation to open depots in Coimbatore

Category: FIBRES

Country: India

Region: Asia

CCI has identified godowns at Singanallur and Avinashi for the depot sales, and it is expected to benefit textile mills in the small and medium-scale sector.

4th May, 2024 06:45 pm | Updated 06:45 pm IST - COIMBATORE
THE HINDU BUREAU

The Cotton Corporation of India (CCI) plans to open two godowns in Coimbatore and a nearby place for sale of cotton to spinning mills in Tamil Nadu.

The CCI, which is a public sector undertaking, has purchased almost 35 lakh bales of cotton at Minimum Support Price (MSP) from farmers in the current cotton season that started in October 2023. It has sold nearly six lakh bales of the cotton purchased. Opening of godowns in Coimbatore is expected to benefit textile mills in the small and medium-scale sector.

In a communication to the Southern India Mills’ Association, the CCI said it has identified godowns at Singanallur and Avinashi for the depot sales. The sales will be through e-auction to the mills registered with it.

According to the South India Spinners’ Association (SISPA) secretary Jagadesh Chandran, the CCI is expected to sell about 5,000 bales every day from the depots in Coimbatore. This will benefit the MSME spinning mills in Tamil Nadu as they can see the samples, check the quality of the cotton at the depots here, and place orders. The cotton will be delivered to the mills on the same day of making the payment. At present, the mills buy from godowns in other States and it takes five to seven days to get delivery of the cotton purchased.

Further, the mills can buy directly from the CCI without going through traders, he said.

Though the volume of cotton sold by the CCI is very less compared with those sold by private traders, it will still benefit the MSME mills, he said.

The Tamil Nadu government removed the market cess on cotton in 2021 and that is a boost for sale of cotton by the CCI through depots in the State.

Courtesy: TheHindu.com