Small spinning mills in trouble due to CCI's cotton price policy: Atulbhai Ganatra
By yash chouhan 2026-02-06 00:43:37
Small spinning mills in India are in trouble as CCI's cotton price policy is causing them huge losses: Atulbhai Ganatra
Mr. Atulbhai Ganatra, Chairman and Managing Director of Radha Lakshmi Group and a renowned cotton expert, told Indian media that small spinning mills across India are gradually closing down or switching to man-made fiber due to the current cotton pricing and sales policy of the Cotton Corporation of India (CCI).
In Andhra Pradesh alone, more than 40 cotton spinning mills have closed in the last one year. According to Mr. Ganatra, the main reason for the closure of these mills is the expensive prices of cotton fixed by the CCI.
“CCI is selling cotton with a delivery period of 60-90 days, which leads to additional costs like bank interest and other finance charges on mill buyers,” he said. “Smaller mills, which operate on very low margins, cannot afford such long delivery periods.”
Mr. Ganatra urged CCI to take immediate corrective action:
"I suggest that CCI gradually reduce cotton prices by ₹1,500–₹2,000 per candy and reduce the delivery period to just 15-20 days. This will help small mills to purchase cotton and continue their operations."
He further said that there will be no loss to CCI by implementing these changes as the corporation will also save on bank interest, warehouse rent, insurance and expenses related to cotton shortage.
