Login ID:
Partner Login
Contact Us : 7066511911

CCI Will Procure Beyond 10 Mn Bales, If required- Chairman

10 Feb 2020 2:57 pm
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai (Commodities Control)- Cotton Corporation of India is prepared to extend procurement beyond '10 Mn Bales'. As of now, the Government agency has already procured 5.8 million bales under price support mechanism. In exclusive conversation with commoditiescontrol.com, P. Alli Rani, Chairman & managing director, CCI has firmly stated her intention of procuring the entire produce, if required. Here are the major excerpts from the interview:

Q1. There are reports of CCI carrying a procurement drive to purchase 10 mn bales of cotton from farmers this season. Do you think its achievable?

CCI : 10 mn bales or any such target is out of question. I will purchase whatever I have to if farmers don't get the right price for their produce. We are a Government agency, if we have to pick all of 36-37 mn bales. we will do it.

But the industry is complaining that CCI is stocking all the good-quality Cotton and in future the trade will have no option other than purchasing from CCI at high rates?

CCI: So far 55% of the season's crop has arrived out of which we have procured only 28%. This means pvt agencies, millers, MNCs and ginners have purchased more than 70% of the crop. How is the accusation even valid? we have purchased 5.8 mn bales of cotton that is landing in the yard, because farmers are in distress. We are not happy to make this purchase. But, if trade is not helpful for farmers, its my duty to do so.

Q3. But what do you intend to do with all the purchase? This kind of procurement has never been seen in last 5 years? Any plan to build major reserves and go the China way?

CCI: We are not in hoarding or speculating business. We make bales and stock it in stockyard across the states. we are constantly auctioning the procured cotton through our website. There's no compulsion of buying from us. There's plenty of cotton around. Market is well-supplied. If the millers don't like our price, they can pick from the market. Off course, during the season purchase are lower from our website. But, off-season supplies will be lower and then eventually people will come and buy from CCI. As for the second part of your question, let me tell you that we will never do that. Even Government hasn't given it any thought.

Q4. SIMA had urged Texile Min to intervene in trading policies of CCI and direct CCI to avoid holding stocks and selling at market price. What do you have to say about that?

CCI: That is false. Because we do not hold cotton and we are selling all the time. Now we are paying the farmers at MSP rate and because of the volumes we have, our overhead load is very light and I don't think anyone can buy in the market with lesser overhead than ours. There's absolutely no shortage of cotton around. If i am buying 28% of the cotton, then there was 72% of cotton around for the spinners to buy. However, Spinners/Industry wants CCI to stop buying from farmers and at the same time the trade doesn't want to give reasonable price to the farmers, either. Upon that Industry hopes for CCI to sell cotton at discounted rates after having procured at MSP. This is not happening.

  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  

Top | Post Comment  

Latest Special Reports
Weekly: Technicals Indicate Further Price Correction Fo...
Weekly: Net Shorts Deepen As ICE Cotton Cracks To Deca...
Weekly: Technically ICE Cotton Under Sellers’ Control; ...
USDA Revises Up 2019-20 Global Cotton Production Estima...
Weekly: ICE Cotton Marks Humble Recovery Amid Robust Ex...
Top 5 News
USD/INR (Apr. ’20) – Inflection Point: Testing a Short-...
USD/INR (Apr. ’20) – Pullback Underway / Testing a Shor...
Top 5 Market Commentary
Monsoon 2020 Likely To Be ‘Above Normal’
Chana Slips At Major Spot Markets
Tur Prices Declines At Major Markets
Masoor/Kabuli Chickpea Weakens In Delhi
Branded Processed Pulses At Mumbai APMC Market- 4th Apr...
Copyright © CC Commodity Info Services LLP. All rights reserved.