Special Report

Published: Dec 29, 2021
Updated: Dec 29, 2021

Cotton Corporation of India

Friend of growers, ally of textile mills

Very rarely does one come across a business entity that has been set up to protect the interests of both producer and consumer. Cotton Corporation of India is the rare exception. Its brief being to cater to the needs of both cotton farmers and domestic textile mills. It saves the cotton farmers from distress sales when there is a lukewarm response from private buyers due to depressed market conditions by buying their produce at the MSP. It ensures availability of good quality cotton to the domestic textile mills including MSME Mills at competitive prices through daily e-Auction. CMD Pradeep Kumar Agarwal points out that the corporation has embraced technology with gusto, with computerized operations at all its procurement centres guaranteeing a fair deal to producers.

Cotton Corporation of India, established half a century ago under the Ministry of Textiles, has played a stellar role as a via media between cotton farmers and the domestic textile industry. Says its far-sighted Chairman and Managing Director Pradeep Kumar Agarwal, "It has achieved a delicate balance in protecting both the interests of cotton farmers and those of the domestic textile industry by making available goodquality cotton at competitive prices." As a Central Nodal Agency of Government of India, the major role of the CCI is to undertake Minimum Support Price (MSP) operations on behalf of Government of India when the prices of seed cotton fall below the MSP level. Besides MSP Very rarely does one come across a business entity that has been set up to protect the interests of both producer and consumer. Cotton Corporation of India is the rare exception. Its brief being to cater to the needs of both cotton farmers and domestic textile mills. It saves the cotton farmers from distress sales when there is a lukewarm response from private buyers due to depressed market conditions by buying their produce at the MSP. It ensures availability of good quality cotton to the domestic textile mills including MSME Mills at competitive prices through daily e-Auction. CMD Pradeep Kumar Agarwal points out that the corporation has embraced technology with gusto, with computerized operations at all its procurement centres guaranteeing a fair deal to producers.

operations, to fulfill the raw material requirement of domestic textile industry, CCI also undertakes viable commercial purchase operations as and when required. CCI offers good-quality cotton at competitive prices through daily e-auction throughout the year to keep the wheels of textile mills running. Little wonder then that CCI has no place for armchair bureaucrats. Its officials need to have practical wisdom, business acumen, remarkable knowledge of the product and marketing intelligence. The CMD, CCI Mr. Agarwal himself is a case in point. He is an expert on cotton, with a remarkable knowledge of various varieties of cotton, crop patterns, quality aspects, and domestic as well as global market trends.

GUARDIAN OF QUALITY:

Says Mr Agarwal in an interview to Corporate India, "As fibre quality is of paramount importance, CCI purchases only FAQ grade cotton, whether under MSP or commercial operations. In order to ensure remunerative prices to cotton farmers and to maintain the quality of cotton, manual systems are minimised in the procurement of cotton. Equipment like computerised moisture meters, mini-gin and micronnaire testers are available at all its procurement centres. Thus, farmers get the right price for their produce based on a scientific assessment of quality on the spot." Likewise, in order to have direct interaction and outreach with the buyer mills and for making the sales system more transparent & market driven, CCI is undertaking 100% sales of lint cotton bales and cotton seed through online e-auction system throughout the season without any hoarding and speculation. This system provides a secure bidding environment to the participants' mills. Textile mills and MSME Units may get themselves registered with CCI to participate in this e-auction platform to bid for any quantity as per their requirement. Thus, CCI is an integral part of Textile Industry and one stop shop for all kinds of good quality cotton to the textile industry at competitive rates. Maintains Mr Agarwal with a sense of pride in his eyes, "In its long journey of around five decades, CCI has truly proved to be a friend of the cotton farmer on one hand and a dependable supplier of goodquality cotton to the textile industry in the country on the other hand."

With a view to maintain its crucial role of safeguarding the interests of cotton farmers across the country while at the same time ensuring a smooth supply of good-quality cotton to textile mills, CCI has established a comprehensive infrastructure. The Navi Mumbai (Maharashtra)- headquartered corporation has a pan-India presence, with 19 branches and more than 450 cotton procurement centres in all major cotton-growing states, including Punjab, Haryana and Rajasthan in the northern zone, Gujarat, Maharashtra, Madhya Pradesh and Odisha in the central zone, and Andhra Pradesh, Telangana, Karnataka &Tamil Nadu in the southern zone.

MOBILE APP FOR COTTON FARMERS

Insisting that "CCI is a dynamic organisation", Mr Agarwal adds, "We strongly believe in moving with the times. A rapidly changing world is throwing up new challenges and opening up new opportunities. At CCI, we are fully equipped to take up challenges as well as seize new opportunities and scale up new goals in the coming years with speed and efficiency, leaving no space for doubts or delay. In fact, we have always welcomed and embraced progressive developments in all fields- commercial, technological, human resource development, financial, etc. We have initiated the process of integrating information technology with business functions - always ensuring that the organisation remains abreast of the latest IT technologies with a view to moving ahead." "Besides this," points out Mr. Agarwal, "in order to improve work culture, transparency, and accountability and also to enhance result orientation, the corporation is promoting the use of information technology in its core activities and has considerably reduced manual intervention in pursuit of the concept of the paperless office."

Adds Mr. Agarwal adds, "In this direction, the corporation has developed a mobile app - styled as 'Cott-Ally', exclusively for cotton farmers to give them authentic information regarding all government schemes related to cotton, and best farm practices for sustainable production of good-quality, contaminant-free cotton to maximise farm income." This free mobile-based application keeps the cotton farmers updated about variety-wise MSP rates of cotton, nearest procurement centres of CCI, payment tracking etc. in their Regional languages so that cotton farmers need not depend on any commission agents for such information. Thus, CCI has established itself as a friend to cotton farmers and dependable supplier to the Textile Industry.