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Proposed Quality Control Order (QCO) of Cotton Bales Faces Opposition from Ginning Industry

3 Aug 2023 8:35 am
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MUMBAI, Aug 2 (Commoditiescontrol): The proposed Quality Control Order (QCO) for cotton bales in India is facing resistance from the ginning industry, which claims it is ill-prepared to comply with the standard IS 1217:2019 prescribed for the product under the QCO. The country's cotton of the new crop is expected to hit the market in September, as the crop is developing well in northern India.

Industry organizations, including the Cotton Association of India (CAI), are opposing the move and demanding a postponement of the QCO's implementation for the coming season of 2023-24. The government is expected to convene a meeting with all stakeholders to address the concerns in the following week.

A virtual meeting was held on Tuesday where ginning millers from various states, including Madhya Pradesh, Maharashtra, Gujarat, Karnataka, Telangana, Punjab, Rajasthan, and Haryana, decided to form a joint body to represent their interests at the national level. They strongly oppose the proposed QCO, citing unpreparedness and lack of compliance within the industry. They plan to communicate their concerns to the government and assert that they will not commence production in the new season if the QCO is forcefully implemented. Additionally, they have decided to boycott the tender process of the Cotton Corporation of India (CCI).

The ginning industry claims that despite receiving a notification five months ago, they still lack the readiness to comply with the QCO. The notification clearly stated that the QCO would come into effect after 180 days, ending on August 31. Moreover, there is no clarity on the current season's stocks, leaving uncertainties about the fate of uncertified cotton.

The CAI, in a letter addressed to Piyush Goyal, the Minister of Textiles, highlighted the challenges posed by the QCO. They argue that during the initial months of the arrival season (September, October, and November), unprocessed cotton (kapas) contains moisture levels between 15-25 per cent. According to the QCO standard, bringing down the moisture level to 8 per cent is difficult, as is maintaining trash levels as low as 3 per cent. Different varieties of cotton in north India contain varying levels of trash, making it impractical to impose uniform standards. Additionally, the QCO mandates 5 per cent testing of cotton bales, but the limited testing infrastructure presents practical constraints.

The CAI suggests that the order should be postponed for one or two years, acknowledging that the government's motive is not negative, but the implementation needs extensive awareness and educational campaigns. Small-sized ginners are particularly in the dark about the order and need more time to adapt. India's vast geographical area and diverse cotton varieties further complicate the uniformity of trash and moisture limits.

An office bearer of CAI emphasizes that the QCO cannot be implemented overnight and believes that the government should hold a meeting with all stakeholders to address the concerns raised by the industry.

The situation remains tense as the government weighs the demands of the ginning industry and the implications of postponing the QCO implementation. The decision taken by the authorities in the upcoming meeting will shape the future of cotton production and trade in India.

(By Commoditiescontrol Bureau; +91-9820130172)


       
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