The Northern India Textile Mills’ Association (NITMA) has urged the government to create a comprehensive cotton fibre policy. The association believes that ensuring sufficient stock to use ratio for cotton fibre and providing the fibre throughout the year at international spot prices can put an end to the challenges being faced by the struggling industry.
NITMA also recommends the government to avoid getting involved in the manufacturing process of ginning and directly pay the difference between minimum support price (MSP) and market price to the farmer. A roadmap is required to improve cotton yield and its quality, and revamping the role of Cotton Corporation of India (CCI) and Cotton Advisory Board (CAB) can help meet the objectives. One of the main concerns for the industry is that the country does not have sufficient surplus cotton. India’s competitors like Pakistan, Bangladesh, China and Vietnam among others buy 20 to 30 per cent of the crop, forcing India to import it at relatively high prices at the end of the season. Moreover, sowing has taken a hit of 10 to 15 per cent in the current season and there is no proper mechanism for measuring crop arrivals and forecasting crop.