Manufacturing Sectors should not depend on Government support for growth- Shri Goyal.

“Resolve Cotton Pricing issue in the spirit of Collaboration rather than competition,” said Shri Piyush Goyal, Union Minister of Textiles, Commerce & Industry, Consumer Affairs and Food & Public Distribution, while speaking to Textile Industry players in a meeting, here today. He asked the Textile Industry leaders not to push Government to intervene.

Shri Goyal cautioned the cotton bale traders from manipulation of prices or do  hoarding to make unfair profits.The Minister further stated that manufacturing sectors should not depend on Government support for growth. Too much dependence of State support is not healthy for the robust growth of the sector. The  Minister was intervening to resolve issues regarding cotton yarn prices between cotton yarn manufacturers and down stream Textile industry.

He said that Farmers interests is being taken care off for the first time as they are now getting better cotton prices supported by very good base MSP. Pricing issue of cotton bales and yarn for the Industry should not be allowed  in any way to impact the better prices which farmers are getting, he added.

Shri Goyal said that idea of short term Super normal profits by a section of players in Textile value chain is not sustainable. “No one should force the Government to intervene. Let free and fair  market forces play out .Super normal profits should not be booked for short term goals”, he said.

The Minister further mentioned   that whole value chain gets adversely impacted even if one section  gets weak. Aatma Nirbhar bharat applies to every one in value chain. All must get benefitted and all must grow. He said that  Cotton bale and yarn prices need to be such that all get benefitted . He exhorted that all stake holders in Textile Value chain need to support each other for long term sustainable growth.

Shri Goyal cautioned the cotton bale traders from manipulation of prices or do any hoarding to make unfair profits. The Minister added that reasonable profits are good and acceptable but undue advantage can not be allowed to be taken by any one value chain.  He also  said that no one   would be allowed to come in the way of better cotton prices to Farmers.

It may be noted that cotton production is estimated at 362.18 lakh bales. The cotton season 2021-22 commenced with an estimated carry over stock of 73.20 lakh bales (COCPC meeting dated 12.11.2021). Opening stock in the country is adequate to meet about two and half month’s mills consumption.  Cotton prices are ruling above MSP level by about 40% i.e. Rs.8500 per quintal as against MSP rate of Rs.6,025/ -per quintal. Farmers are getting reasonably good prices for their produce which is in tandem with other agri-commodities as well.

World cotton acreage is expected to increase by 4% to 33.27 million hectare as against 31.97 million hectare of last year. Whereas world cotton production is projected to increase by 6% to 1512 lakh bales (25.72 MMT) as against 1426 Lakh bales (24.26 MMT) of last year and world cotton consumption is expected to increase by 2% to 1530 lakh bales (26.01 MMT) as against 1505 lakh bales (25.60 MMT) of last year.

Earlier also, Shri Goyal  held a review meeting of Cotton Corporation of India (CCI)  to  discuss ways to strengthen procurement processes to further support livelihoods of our cotton farmers.

Minister of State for Textiles and Railways, Smt. Darshna Jardosh, Shri U.P. Singh, Secretary    Textiles, Shri Pradeep Agarwal, CMD, CCI and senior officials of CCI, Textiles industry players and exporters  participated in the meeting.

CCI is appointed as a Central Nodal Agency under Ministry of Textiles for undertaking Minimum Support Prices (MSP) operations for cotton. It safeguards the economic interest of cotton farmers,  ensures the benefit of MSP to bonafide cotton farmers and undertakes MSP Operations in the event prices of Fair Average Quality (FAQ) grade kapas fall below the MSP level.