The CCI Limited is holding surplus stocks of cotton. With the coming harvest season approaching, the Cotton Corporation of India is trying to boost cotton exports.
To export the current cotton stocks, India will sign MOU with Bangladesh to export 1.5 to 2 million bales (326 to 435 kilo gram) of cotton. Also, India to setup cotton warehouse in vietnam to boost exports.
The Cotton Corporation of India has so far procured 12.1 million bales (2634 KG) of cotton. Along with its agent The Maharashtra State Co-Operative Marketing Federation Limited, CCI was able to sell 900,000 bales (195951903 Kilogram) of cotton in 2020.
Why Bangladesh and Vietnam?
India has chosen Bangladesh and (Southeast Asian Nation) Vietnam as they have duty-free access to markets of United States, Europe, and China. This gives them an edge over Indian Yarn and garment exporters who pay comparatively higher duties.
It is a Indian Govt agency that is engaged in diverse activities related to export, trade, and procurement of cotton. CCI is a public sector agency. It is also responsible for distribution of cotton and aids in import of cotton. The Cotton Corporation of India is governed by the Textile Policy 1985 that was issued by the Textiles Ministry.
Textile Policy in India
Textile in India is working under National Textile Policy (NTP) 2000. In 2019, GOI has announced a new Textile Policy, 2020 will come into force in mid of 2020. The New Textile Policy 2020 being formulated will focus on technical textiles, manufacturing of apparel and garment, man-made fibre products and exports.
India to setup Cotton Warehouse in Vietnam