Textile mills pin hopes on fourth quarter

Industry is banking on the textile ministry's move to boost cotton procurement

Textile mills are hoping the fourth quarter of the financial year will be better than the demonetisation-affected previous one because of the textile ministry's reprieve reducing the initial payment for the cotton procured.

As first-time payment, firms now need to shell out 10% of the price if the procurement is 3,000-30,000 bales (one bale=170 kg), as against 20% earlier. It is 15% for procurement below 3,000 bales, and 20% for 30,000 bales or more. 

Union Textile Minister Smriti Irani has directed Cotton Corporation of India (CCI), which procures cotton normally when the prices crash below the minimum support price, to procure on