Cotton Industry Faces Supply Crunch as TASMA Urges CCI to Retain Stocks

ENA Sectors 2024-06-25 16:26:13 Tamil Nady, Jun 25 (KNN) In a significant development for the Indian textile industry, the Tamil Nadu Spinning Mills Association (TASMA) has made a pressing appeal to the Cotton Corporation of India (CCI) to retain its unsold cotton stocks rather than diverting them to traders. This move comes as the spinning sector experiences a resurgence in demand, driven by an influx of garment orders. TASMA President AP Appukutti, in a letter addressed to the CCI, emphasised the critical nature of this request. The spinning mills are witnessing a positive revival, with normal activities picking up once again. This upturn necessitates an increased cotton supply to meet the growing demand, Appukutti stated, reported Hindu. The association has expressed confidence that its members will be able to procure the CCI's cotton stocks by the end of August, highlighting the importance of maintaining a stable supply chain. Appukutti further warned of potential repercussions if the CCI were to sell its stocks to traders. Such a move could trigger a cascading effect throughout the value chain, he cautioned. The TASMA chief argued that traders, driven by profit motives, might escalate costs, potentially disrupting the recent positive momentum in the spinning sector. This situation highlights the intricate interdependencies within India's textile industry and the strategic importance of cotton availability. As the sector navigates post-pandemic recovery, ensuring a stable and affordable cotton supply emerges as a key factor in maintaining the industry's competitiveness and growth trajectory. The CCI's decision on this matter will be closely watched by industry stakeholders, as it could significantly impact the short-term outlook for India's spinning mills and the broader textile sector. (KNN Bureau) 38339 https://knnindia.co.in/news/newsdetails/sectors/cotton-industry-faces-supply-crunch-as-tasma-urges-cci-to-retain-stocks 2024-06-25 16:26:13 knnindia.co.in Cotton Industry Faces Supply Crunch as TASMA Urges CCI to Retain Stocks