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SIMA gives importance for PSF in cotton

While hailing the increase in MSP for cotton, the Southern India Mills’ Association (SIMA) has emphasised on the need for Price Stabilisation Fund (PSF) scheme and a Technology Mission on Cotton (TMC) in a revised format to double the income of the cotton farmers and to grow the business of the industry as well.

Cotton PSF scheme consisting of 5 to 7 per cent interest subvention, 10 per cent margin money and nine months credit limit would enable spinning mills and the Cotton Corporation of India to compete with multinational cotton traders and cover cotton during peak season.

PSF would also bring more GST revenue and boost exports. To roll out TMC (between 1999 and 2002) and introduction of Bt cotton, India emerged the largest producer of cotton. Following the government’s withdrawal of extension of TMC, farmers’ suffering began with spurious seeds, lack of seed technology and technology transfer, agronomy research, quality deterioration of the fibre at ginning stage and so on.

The Southern India Mills’ Association (SIMA) has emphasised the need for Price Stabilisation Fund (PSF) scheme and a Technology Mission on Cotton (TMC) in a revised format to double the income of cotton farmers and to grow the business of the industry as well.

The textile industry, which is predominantly MSME in nature could not compete with the multinational traders in covering cotton requirement. They thus were forced to shell out 10 to 25 per cent higher cost for home grown cotton during off-season.

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