The Kerala government has formed a Cotton Board for the purpose of procurement of cotton required for the running of 17 textile mills in the State as well as for distributing it on the basis of requirements. Industries department principal secretary A.P.M. Mohammed Hanish will head the committee which will consist of the Textile Corporation chairman, the Texfed managing director and the Director of Handlooms as members and the Secretary of the Public Sector Restructuring and Internal Audit Board (RIAB) as the convener.
Industries Minister P. Rajeeve has said such a mechanism is coming into existence in Kerala for the first time. The mills under the department have till now been procuring the required cotton on their own, due to which they were unable to secure considerable discounts. While procuring through the board, the purchase can be done based on the lowest prices of the season. The lower cost of procurement will enable the mills to post better profits, said Mr. Rajeeve. The government will fund the costs for the initial operations of the board. Later, aid will be sought from institutions, including NABARD, if the need arises.
Mr. Rajeeve said the government was taking such a step at a time when the mills under the National Textile Corporation have ceased to function due to issues related to raw materials.
