Resolve Cotton Pricing issue in the spirit of Collaboration rather than competition: Piyush Goyal in conversation with Textile Industry
20 November 2021, Mumbai:
Goyal cautioned the cotton bale traders from manipulating prices or hoarding to make unfair profits. The Minister further stated that manufacturing sectors should not depend on Government support for growth.
Too much dependence on State support is not healthy for the robust growth of the sector. The Minister was intervening to resolve issues regarding cotton yarn prices between cotton yarn manufacturers and the downstream Textile industry.
He said that Farmer's interests are being taken care of for the first time as they are now getting better cotton prices supported by a very good base MSP. Pricing issues of cotton bales and yarn for the Industry should not be allowed in any way to impact the better prices which farmers are getting, he added.
Shri Goyal said that the idea of short-term Supernormal profits by a section of players in the Textile value chain is not sustainable. “No one should force the Government to intervene. Let free and fair market forces play out. Supernormal profits should not be booked for short-term goals”, he said.
The Minister further mentioned that the whole value chain gets adversely impacted even if one section gets weak. Atma Nirbhar Bharat applies to everyone in the value chain. All must get benefitted and all must grow. He said that Cotton bale and yarn prices need to be such that all get benefitted.
He exhorted that all stakeholders in the Textile Value chain need to support each other for long-term sustainable growth.
Shri Goyal cautioned the cotton bale traders from manipulating prices or doing any hoarding to make unfair profits. The Minister added that reasonable profits are good and acceptable but undue advantage can not be allowed to be taken by anyone's value chain. He also said that no one would be allowed to come in the way of better cotton prices to Farmers.
It may be noted that cotton production is estimated at 362.18 lakh bales. The cotton season 2021-22 commenced with an estimated carry-over stock of 73.20 lakh bales (COCPC meeting dated 12.11.2021). Opening stock in the country is adequate to meet about two and half months’ mills consumption.
Cotton prices are ruling above the MSP level by about 40% i.e. Rs.8500 per quintal as against the MSP rate of Rs.6,025/ -per quintal. Farmers are getting reasonably good prices for their produce which is in tandem with other agri-commodities as well.
World cotton acreage is expected to increase by 4% to 33.27 million hectares as against 31.97 million hectares of last year. Whereas world cotton production is projected to increase by 6% to 1512 lakh bales (25.72 MMT) as against 1426 Lakh bales (24.26 MMT) of last year and world cotton consumption is expected to increase by 2% to 1530 lakh bales (26.01 MMT) as against 1505 lakh bales (25.60 MMT) of last year.
Earlier also, Shri Goyal held a review meeting of the Cotton Corporation of India (CCI) to discuss ways to strengthen procurement processes to further support the livelihoods of our cotton farmers.
Minister of State for Textiles and Railways, Smt. Darshna Jardosh, Shri U.P. Singh, Secretary Textiles, Shri Pradeep Agarwal, CMD, CCI, and senior officials of CCI, Textiles industry players, and exporters participated in the meeting.
CCI is appointed as a Central Nodal Agency under the Ministry of Textiles for undertaking Minimum Support Prices (MSP) operations for cotton.
It safeguards the economic interest of cotton farmers, ensures the benefit of MSP to bonafide cotton farmers, and undertakes MSP Operations in the event prices of Fair Average Quality (FAQ) grade kapas fall below the MSP level. PIB
(The news article has not been edited by DFU Publications staff)
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