Cotton imports by China in June have fallen by 26 per cent already. The see-sawing of prices in major countries including India is causing a lot of anxieties. Chinese prices are under pressure from significant left-over commercial stocks as well as sales of state reserve cotton, kicked off recently.
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The Cotton Association of India fears that India may be piling up huge inventory of cotton just like China, if the Cotton Corporation of India (CCI) does not take measures to offload its stock swiftly. Maintaining the cotton output at the last estimated level of 38.27 million bales (a bale is 170 kg), Dhiren N Sheth, President, CAI, says the Corporation had procured about 8.7 million bales from farmers as part of the Government’s minimum support price commitment.
An amount of Rs 288.4 crore have been released for setting up of textile parks in the country during the last three years,´ Textiles Minister Santosh Kumar Gangwar said.
The Government of India announced the minimum support price (MSP) for Kapas (seed cotton) for the current season (October 2014-September 2015).
With the continuous decline in prices of cotton and yarn, and marked drop in buying of cotton from China, the Union Government is making attempts to bail out the domestic industry and farmers in India.
The Cotton Association of India (CAI) has placed the cotton crop for the season 2014-15 beginning on 1st October 2014 at 405.50 lakh bales of 170 kg. each.