The Cotton Corporation of India (CCI) on Monday reduced the selling price of cotton as a “one-time correction.”
International cotton prices had risen almost 12% in the last two months and dropped at the same rate, said Pradeep Kumar Agarwal, CMD of CCI. “The CCI did not increase the prices to that extent. Since CCI prices went up only by about 2%, it has reduced the prices by [about] 2%,” he said. The amount of reduction in prices differs according to the variety of cotton.
This nominal correction will give a stimulus to the textile industry as those who want to buy cotton can do so now, he added.
A. Sakthivel, chairman of the Apparel Export Promotion Council, said cotton yarn prices had gone up steeply in the last 4 months. The move by the CCI was significant for the textile value chain, especially garment exporters, he said, appealing to textile mills to reduce yarn prices by ₹20 a kg as cotton prices had declined.
