In a bid to quell market uncertainties, S K Sundararaman, Chairman of The Southern India Mills Association (SIMA), emphasized the significance of adhering to official estimates in the cotton industry. Addressing concerns stemming from recent price fluctuations, Sundararaman underscored the importance of relying on data from the Committee on Cotton Production and Consumption (COCPC), a body chaired by the Textile Commissioner and inclusive of key stakeholders across the cotton textile value chain.
The COCPC, formerly known as the Cotton Advisory Board under the Ministry of Textiles, has been instrumental in providing realistic estimates regarding cotton supply and demand dynamics. Drawing upon inputs from various industry representatives and primary data collected by the Office of Textile Commissioner, the COCPC furnishes comprehensive insights into key metrics such as opening stock, crop production, imports, and consumption patterns.
Sundararaman cautioned cotton textile mills against succumbing to market speculation, urging them to exercise prudence amidst price surges. He highlighted the recent spike in cotton prices, attributing it to speculative trading rather than fundamental shifts in supply and demand dynamics. Referring to the COCPC's projections for the 2023-24 cotton season, he reiterated the need for stakeholders to place trust in scientifically derived estimates to navigate market uncertainties effectively.
Furthermore, Sundararaman commended initiatives aimed at bolstering transparency and quality within the industry. He lauded the Cotton Corporation of India Limited (CCI) for enforcing fair quality standards and applauded the introduction of Kasturi Cotton Bharat, a new indigenous cotton brand. Additionally, he praised the efforts of the Cotton Textiles Export Promotion Council (TEXPROCIL) in promoting the Kasturi Cotton Bharat brand and emphasized its potential to command premium value in the market.
Despite challenges posed by intermittent price fluctuations, Sundararaman expressed confidence in the resilience of the textile industry, particularly acknowledging the role of CCI in supporting Micro, Small, and Medium Enterprises (MSMEs) amid market uncertainties. As stakeholders navigate through volatile market conditions, Sundararaman's call to prioritize official data serves as a beacon of stability in the ever-evolving cotton landscape.
