Cotton Trading Policy

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A representation was received from Chairman, South Indian Mills Association (SIMA) requesting to direct Cotton Corporation of India (CCI) Limited to offer cotton at the prevailing market prices through e-auction on a regular basis and avoid hoarding huge volume of cotton. In this regard, it is stated that CCI is undertaking Minimum Support Price (MSP) operations when prices of Fair Average Quality (FAQ) grade kapas fall below the MSP level and procures entire quantity of FAQ grade kapas offered by the cotton farmers in various Agricultural Produce Market Committee (APMC) yards at MSP rate. The FAQ grade cotton procured under MSP operations is superior quality which is of higher value. The cotton procured by CCI under MSP operations is made available to the industry on daily basis through e-auction. The system is transparent and CCI’s pricing policy is value based.

It has always been the endeavour of CCI to ensure availability of good quality cotton at competitive rates to domestic textile industry including MSME units, Co-operatives and Institutional buyers. In order to enable the mills to procure cotton at competitive prices, CCI has introduced bulk discount scheme for 2018-19 stock which is applicable on purchase of minimum quantity of 500 bales. Micro,Small and Medium Enterprises (MSME), KVIC and Co-operative mills are entitled to avail discount on buying a minimum quantity of even 100 bales. Under this scheme, the mills can avail discount of Rs. 3200 per candy to Rs. 5000 per candy depending upon quantity purchased.