- The Indian Government will soon sign a Memorandum of understanding with Bangladesh to expand the cotton exports.
- The CCI to canalize export of at least 10 Lakh bales of cotton.
The MoU is going to facilitate a Government to Government transaction. This Memorandum will be signed soon and will be handled by Cotton Corporation of India Limited. The MoU was scheduled to be signed during PM Modi’s visit to Bangladesh this year. But, due to elections in various states, it could not be signed.
Bangladesh forms a good market for Indian cotton; imports 20 to 30 lakh (each weighing around 120 kgs) bales per year. This is the first time that CCI is trying to enter the export market directly. The contract is in final stages with both the governments actively negotiating the deals. Bangladesh is worried with the government export guarantee, arguing that government of India takes a lot of time with the supplies, where as the private exporters are quite prompt.
CCI procured around 100 bales of cotton in the cotton season 2020-21 at MSP of Rs 5,515 per quintal for medium staple cotton and Rs 5,825 per quintal for long staple cotton.
ABOUT CCI:
Cotton Corporation of India (CCI) was established in 1970 under the administrative control of ministry of textiles, Government of India as a public sector undertaking under the companies Act 1956.
CCI played a role of a canalizing agency for imports of cotton and purchase of raw cotton for giving necessary price support to cultivators and also for procuring raw cotton for textile mills.
The major role of CCI is to undertake price support operations, whenever the market prices of KAPAS fall below the MSP announced by the government of India, without any quantitative limit. It also fulfills the raw material requirement of the domestic textile Industry particularly for lean season, CCI undertakes commercial purchase operations.
