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Cotton Council of India: Formation, Composition, and Functions

by Reethu S Arya
November 2, 2022
in Articles, General Knowledge
Cotton Council of India Formation Composition and Functions
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Table of Contents

  • Cotton Council of India: Formation
  • Cotton Council of India: Composition
  • Cotton Council of India: Functions

CCI was formed on 31st July 1970 under the administrative control of Ministry of Textiles, Government of India as a Public Sector Undertaking under the Companies Act 1956. In the beginning period of setting up, as the only public sector expertise  in the field of marketing of cotton. It  played a vital role of a canalizing agency for imports of cotton and purchase of raw cotton for providing  necessary price support to enterprising cultivators and also for procuring raw cotton for textile mills. The role and function of CCI continued to expand  with the changing cotton scenario in the country. Currently, the role of the CCI is to undertake price assists operations, whenever the market prices of kapas fall below the minimum support prices (MSP)  declared by Govt. of India, irrespective of any quantitative limit. In addition to the MSP operations, to meet  the raw material requirement of the domestic textile industry especially  for lean season, CCI undertakes commercial purchase operations. The essence is to  safeguard the economic interest of cotton farmers in all the cotton growing regions and to cross check smooth supply of good quality cotton to the textile industry in the country. The Corporation is having PAN India presence through headquarters at CBD Belapur, Navi Mumbai (Maharashtra), 19 branches and more than 400 cotton procurement centres in all major cotton growing States.

Cotton Council of India: Formation

  • The Union Government has declared the formation of the Cotton Council of India under the Chairmanship of renowned veteran cotton man Suresh Bhai Kotak.
  • The Council shall have the entries from Textiles, Agriculture, Commerce, and Finance Ministries, in addition with Cotton Corporation of India and Cotton Research Institute.
  • Mr Goyal, appealed to the spinning and trading community to ensure a hassle-free supply of cotton and yarn first to the domestic industry.
  • The government is determined  to assist the interests of cotton farmers, spinners, and weaver
  • The Minister assured to actively take into notice of  the demand of the spinning sector for exemption from import duty on those import contracts in which bills of loading are issued up to September 30, 2022, to overcome the present cotton shortage and logistic issues.

Cotton Council of India: Composition

  • The Cotton Corporation of India (CCI) was formed in 1970 by the government as a public sector organization in the field of cotton marketing.
  • Ever-since its inception, the Corporation has been functioning in competition with private cotton traders and other institutional buyers
  • The  market share varying from 5 per cent to 8 per cent except in some years under MSP operations when it has gone up to 31 per cent.
  • With the constant fluctuations with respect to the Cotton Industry scenario, the role and functions of the Corporation were reviewed and revised from time to time.
  • As per the policy directives received from the ministry of textiles in 1985, the CCI is the only  agency of the government for undertaking Minimum Support Price (MSP) operations, whenever the prices of kapas (seed cotton) fall below the MSP level.

Cotton Council of India: Functions

  • The council shall discuss, deliberate, and draft  a robust action plan for improvement in the field.
  • The Council shall have the entries from Textiles, Agriculture, Commerce, and Finance Ministries, in addition with Cotton Corporation of India and Cotton Research Institute
  • The announcement was made in meeting in the presence of stakeholders from the cotton value chain, held under the Chairmanship of Union Textiles Minister Piyush Goyal.
  • Mr Goyal, appealed to the spinning and trading community to ensure a hassle-free supply of cotton and yarn first to the domestic industry.

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Reethu S Arya

Reethu is a learner, orator and storyteller who keeps it all to herself unless it’s for exams and grades. She claims her spirit animal to be a cute fluffy panda (not your regular ones)and has been its disciple since day one! She thinks she connects more with words than with people. She believes her writings will someday help somebody in some way as they did with her!

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