Troubled over the steep escalation in cotton prices and the Cotton Corporation of India’s (CCI) cotton trading policy, the mill sector has appealed to Union Textile Minister Smriti Irani to intervene and direct CCI to arrest the price rise. Accusing the corporation of holding large volumes of cotton and quoting prices higher than market rates, industry sources said that the Corporation’s present stand not only affects market sentiments but also puts the competitiveness of the user industry at stake.

The sector has advised CCI to be prudent in pricing and rethink its trading policy. Its policy of operating MSP through CCI instead of direct transfer to farmers or allowing free market to function is neither helping the farmer nor the user industry. Mills are unable to source cotton from CCI as the base price quoted by the Corporation is Rs 46,000 per candy while the market price is Rs 40,000 a candy

According to SIMA, industry-friendly cotton trading policy followed by CCI will help mitigate current challenges and enable the industry to grab the market opportunities in the wake of the thaw in the US-China trade relations.