CCI sees only limited role for itself in cotton procurement

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Coimbatore, Mar 2 (PTI) With cotton prices ruling 10 per cent above the Minimum Support Price (MSP), the Cotton Corporation of India sees limited role for itself in procuring it during the current season, a top CCI official said here today.

“Our role is going to be limited. We had not intervened for large volumes and do not expect cotton prices to touch the MSP during the current season,” Chairman and Managing Director of CCI B K Mishra told reporters.

He was speaking at the TEXFAIR 2012–the textile machinery, accessories and spares exhibition–organised by Southern India Mills� Association here.

MSP operations are not taking place, Mishra said, adding CCI usually intervenes on the government”s behalf when market prices are below MSP.

But cotton prices are now quoting Rs 700-800 per quintal more than the MSP of Rs 3,300 per quintal.

The CCI, which procured 13 lakh bales in the 2010-11 cotton season (Oct-Sep), has so far purchased less than one lakh bales, he added.

Textile mills here have urged the Government to empower CCI to play a larger role in the cotton market.

“CCI can play a role in stabilising cotton prices,” secretary general of the association K Selvaraju said.

Source: http://news.in.msn.com/business/article.aspx?cp-documentid=5893817

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