Tamil Nadu spinning mills advised to purchase cotton immediately

27-Jun-2024 01:53 PM

Coimbatore. The Central Government's subordinate agency - Cotton Corporation of India (CCI) has told the members of Tamil Nadu Spinning Mills Association to cover (purchase) the required stock of cotton as soon as possible.

It is worth mentioning that this association had requested the corporation not to sell cotton to traders. In response to this, the corporation has said that the millers should make the deal of purchasing cotton as soon as possible by paying the prices.

The Chief General Manager (Marketing) of the corporation has said that if the spinning units need cotton stock for a long period, then they can cover it by taking advantage of the 'lock-in facility'.

The stock of cotton will remain with the corporation but the units will have to bear its expenses and they can lift this stock anytime within the stipulated time limit.

This facility is beneficial for spinning mills because once the deal is done, the millers will not have to face the risk of fluctuations in the market price of cotton.

Usually the price of cotton rises during the last quarter of the marketing season (July-September) if the millers keep getting cotton at a fixed price after signing a contract with CCI.