'Govt should ask CCI to give cotton in smaller lots for SMEs'

Over complaints from small and medium mills facing problems while procuring cotton from the Cotton Corporation of India, Southern India Mills' Association today urged the government to instruct the state-run firm to offer at least 50,000 bales in each centre.
In a representation to Union Textile Minister Santosh Kumar Gangwar, SIMA chairman T Rajkumar said mills are finding it difficult to procure cotton as a very limited number of lots of each category at cotton centre was offered on a daily basis.
"The Minister should look into CCI's e-auction policy and instruct them to offer at least 50,000 bales (keeping lot size flexible and multiples of 100 bales) in each centre and in each variety, to give priority to SMEs and ensure the least difference in the cost of cotton procured by them and larger players," Rajkumar said.

Appreciating efforts to protect interests of farmers by way of MSP operations through CCI, he said these were carried out by CCI in Telangana, Andhra Pradesh and Maharashtra.
CCI this season has covered all good quality cotton grown in these states and today several hundred mills badly need this cotton to meet their customer needs, he said.
He added that from June 24 to July 1, 10.21 lakh bales were offered by CCI, of which only around 20,000 bales of 62 smaller lots (lot size 500 and below) were offered, amounting to less than two per cent of the total quantity.

In many varieties and centres, only bulk volumes were offered, preventing small and medium mills from participating in the e-auction, he added.
Of 3,100 spinning mills in India, 1,325 are under SSI category and even in the non-SSI category, the average number of spindles per mill is only 25,000, which normally need less than 75 bales per day, he said.
Therefore, it was essential for CCI to offer more number of lots in smaller size, give priority for SMEs, who were starving for funds and badly need cotton.