The CCI rate cut and discount scheme for bulk buyers has boosted the sales of cotton in India. Further, fears of possible delay in the arrival of the new crop due to rains are also prompting traders to increase their purchases. As per the details shared by trade sources, CCI has sold more than 3.5 lakh bales of cotton in the first two days of September, while in the entire month of August the sale was only 1.24 lakh bales.
New Scheme by CCI is Getting a Good Response
The new rate cut and discount scheme of CCI (Cotton Corporation of India) is getting a very good response. As of now, 1.85 lakh cotton bales have been sold. As per report released, traders so far have bought 1.22 lakh bales from CCI, and millers have bought 63,600 bales of cotton. Notably, CCI is releasing cotton from the last season as the new season will start from October. Further Cotton corporation of India (CCI) has also reduced the minimum price of cotton. There has been a reduction of up to Rs 300 per candy, where one candy contains 356 kg of cotton.
Floor Price of Cotton Reduced by CCI
Since August 19, CCI has reduced the floor price of cotton several times in which the latest reduction was Rs 300 per candy, CCI has reduced the floor price by up to Rs 2,000. Central Govt. on August 19 announced the removal of import duty on cotton, which was earlier set at11 percent import duty. However, till December, the government has set the import duty to be on Zero per cent. Following this, farmers and farmers’ union organizations have strongly objected to the removal of import duty.
The discount of Rs 300 per candy is in addition to the Rs 400 per candy offered initially on its website. The discount was for buyers like KVIC units, cooperative spinning mills, MSME spinning mills, and institutional mills buying a minimum of 2,500-4,999 bales per day. Private textile mills can also avail the discount by buying 5,000-9,999 bales,s and traders can buy 10,000-24,999 bales. The discount will be applicable on purchases made during the fortnight of September 1-15.