Union Minister Piyush Goyal urges cotton traders to refrain from hoarding and price manipulation

Union Minister Piyush Goyal has cautioned cotton bale traders to refrain from manipulation of prices or resort to hoarding to make unfair profits. Addressing textile industry players in a meeting, he also told them to “resolve cotton pricing issue in the spirit of collaboration rather than competition”.

“Goyal cautioned the cotton bale traders from manipulation of prices or do hoarding to make unfair profits,” according to an official statement from the textiles ministry. 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 statement said.

The minister was intervening to resolve issues regarding cotton yarn prices between cotton yarn manufacturers and downstream textile industry. He observed that farmers’ interests are being taken care of for the first time as they are now getting better cotton prices supported by 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 that farmers are getting, he added. India’s cotton production is estimated at 362.18 lakh bales. The cotton season 2021-22 commenced from October with an estimated carryover stock of 73.20 lakh bales. Opening stock in the country is adequate to meet about two and a half month’s mills consumption.

“Cotton prices are ruling above the MSP level by about 40 per cent i.e. Rs 8,500 per quintal as against a minimum support price (MSP) 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,” the statement said.

Goyal said the idea of short-term supernormal 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. Supernormal profits should not be booked for short-term goals,” he said. The Cotton Corporation of India (CCI) is appointed as a central nodal agency under the Ministry of Textiles for undertaking MSP operations for cotton.

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