The Cotton Corporation of India (CCI) Plans to Open Depots in Coimbatore
2024-05-06 10:17:05
There are plans to open depots in Coimbatore by the Cotton Corporation of India (CCI)
The Cotton Corporation of India (CCI) is planning to establish two depots in Coimbatore and nearby areas to facilitate the sale of cotton to spinning mills in Tamil Nadu. This move is part of their efforts to make cotton more accessible to textile mills, particularly in the small and medium-scale sector.
The CCI, a public sector entity, has procured a significant amount of cotton from farmers at Minimum Support Price (MSP) during the current cotton season, amounting to nearly 35 lakh bales. They have already sold around six lakh bales of this cotton. By establishing depots in Coimbatore, they aim to streamline the distribution process and provide easier access to cotton for local textile mills.
The chosen locations for these depots are Singanallur and Avinashi. The cotton sales will be conducted through e-auctions exclusively for mills registered with CCI. It's estimated that approximately 5,000 bales of cotton will be sold daily from these depots, benefiting MSME spinning mills in Tamil Nadu.
One notable advantage for mills purchasing from these depots is the ability to inspect samples and assess cotton quality firsthand, which was not possible when buying from out-of-state warehouses. Additionally, purchasing directly from CCI reduces reliance on intermediaries and can potentially expedite the procurement process.
While the volume of cotton sold by CCI remains relatively small compared to private traders, the initiative is expected to significantly benefit MSME mills in Tamil Nadu. The removal of market cess on cotton by the Tamil Nadu government in 2021 further encourages the sale of cotton through CCI depots in the state, making it a more attractive option for local textile manufacturers.
