chapter viii wool & wollen textiles industry - Ministry of Textiles

annual report 2011-12
cotton in terms of contamination and trash
contents at par with the international level
the demand for Indian cotton has been
increasing substantially. During the cotton
season 2011-12, the cotton exports from
the country had been placed at 80.00 lakh
bales as against 70.00 lakh bales during
2010-11.
In the current cotton season 2011-12, due
to increased gap between production vs.
consumption, the cotton imports by China
are expected to rise to 3.26 million tons as
against 2.61 million. Besides this, world
cotton trade is also expected to increase
by 2% to 7.8 million tons as against 7.6
million tons in previous year. Due to this
as also due to increased availability of
cotton, the Cotton Advisory Board has
placed cotton exports in 2011-12 at 80.00
lakh bales as against 70.00 lakh bales
in previous season. Looking to this, for
cotton season 2011-12, the Government
of India has placed cotton exports under
OGL. However, cotton exports from the
country shall depend upon the price parity
of domestic cotton vis-à-vis equivalent
foreign growths.
Price of kapas (seed cotton)
Government of India announces Minimum
Support Price for two basic staple groups
viz., medium long staple (staple length
24.5mm to 25.5mm and micronnaire
value 4.3 to 5.1) and long staple cotton
(staple length 29.5mm to 30.5mm and
micronnaire value 4.3 to 5.1).
Cotton Corporation of India (CCI) is the
nominated agency of the Government of
India for undertaking MSP operations in the
event of prevailing kapas prices touching
the MSP level. As per the mandate, in
MSP operations, CCI purchase the entire
quantity offered to it by the cotton farmers
at APMC market yards, without any
quantitative restrictions.
For cotton season 2011-12, the
Government of India has increased the
MSPs by 10% to 12% as compared to
previous year.
In current cotton season 2011-12, the
prevailing kapas prices in almost all
the cotton growing States have been
ruling above MSP level. However, due
to financial tightness caused by heavy
losses suffered in previous year, the mills
are refraining themselves from covering
cotton requirement for lean season. This
may put pressure on the prevailing kapas
prices, especially in the States of Andhra
Pradesh, Maharashtra, Madhya Pradesh
and some parts of Gujarat may touch
MSP level and with a view to ensure
remunerative prices to the cotton growers,
the nodal agencies may have to undertake
MSP operations in such areas.
COTTON CORPORATION OF INDIA
LTD., (CCI), MUMBAI
The Cotton Corporation of India Ltd., (CCI)
was set up in 1970 with the objective of
acting as the canalizing agency for import
of cotton and undertaking purchase of raw
cotton for giving necessary price support to
enterprising cultivators growing new varieties
of cotton developed as substitute for imported
long and extra long staple cottons as also for
procuring raw cotton for textile mills, both in
public and private sectors.
Over the years, its operations have
undergone significant changes in keeping
with the developments taken place in the
Indian cotton economy during past two
decades.
In the Textile Policy, 1985, CCI’s role was
expanded to carry out commercial operations
for meeting the cotton requirements of
institutional buyers and to fulfill the export
quotas allocated to it by the Government
of India. However, with liberalization,
since cotton exports have been placed
under Open General Licence (OGL), the
system of allocation of export quotas in
favour of different agencies have been
dispensed with.
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