Southern India Mills' Association today thanked the Centre and Union Textile Minsiter Santhoshkumar Gangwar for the move to introduce Direct Payment Deficienmcy System to help cotton farmers to get better realisation for the produce, when the markets rates ruled below Minimum Support Price.
In a statement, SIMA chairman, M Senthilkumar said that the operation of DPDS through Agricultural Produce Market Committee (APMC) would greatly benefit the farmers and also the industry.
The textile commissioner has announced launching of the scheme during the current season at Hngenghat Taluk in Maharashtra on a pilot basis, he said.
He said that during the earlier season, the industry had to pay Rs.2,000 to Rs.3,000 higher than the regular price, when compared to the international price and particularly mills in Telangana and Andhra Pradesh (cotton producing States) had to source cotton from other States, as Cotton Corporation of India suspended sale during the cotton season between March and May 2015.
China Cotton Reserve Corporation incurred huge losses due to MSP operations and therefore, has introduced Direct Benefit Transfer System from the last cotton season, which has enabled Chinese spinning sector to source cotton at market prices, he said.
He expressed hope that similar scenario would soon be created in India and create a win-win strategy for the farmers and the industry apart from reducing losses to the government.
He also requested the Government, particularly the Textile Commissioner foreseeing implementation of the scheme on a pilot basis to design a suitable system and make the scheme successful.
