Govt urged to ensure direct supply of cotton to spinning mills to prevent bulk buying by traders

Coimbatore: Traders have procured about 32.5 lakh bales of cotton between Jan and March, significantly higher than the 18 lakh bales purchased by spinning mills. Citing concerns over the spinning sector's sustainability, South India Spinners' Association has urged the Cotton Corporation of India (CCI) to ensure direct supply of cotton to mills at a fair price and prevent bulk buying by traders.The association also called for removal of the 11% import duty on cotton and sought the intervention of the state to regulate input costs and review electricity tariffs to sustain the sector. The association flagged the mounting cost pressures on spinning mills and attributed the same to a sharp increase in raw material prices and operational challenges. According to S Jagadesh Chandran, honorary secretary of the association, cotton prices have surged from Rs52,000 per candy (356kg) on March 1 to Rs63,000 by April 6, marking an increase of Rs11,000 per candy. This spike is attributed to global trends, rising crude oil prices, higher transport costs and other input cost escalations. In contrast, 40s cotton yarn prices rose only from Rs265 to Rs290 per kg, an increase of Rs25, indicating that yarn prices have not kept pace with cotton costs. Similarly, polyester fibre price has increased from Rs101 to Rs131 per kg, while viscose staple fibre price has gone up to Rs188 from Rs168 between March 1 and April 1. Also, 60s polyester viscose yarn prices have increased from Rs218 to Rs235 per kg, again reflecting a mismatch between input and output prices. Adding to the strain, migrant workers from West Bengal, Assam and Odisha have returned home to vote. With uncertainty looming over their return, mills are operating at around 50% capacity. The association has shot off a letter to Union railway minister Ashwini Vaishnaw, seeking to run special concessional trains to facilitate workers' travel and return, he said.
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