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India extends QCO on cotton bales for 3 months, respite to industry

09 Aug '23
2 min read
Pic: Shutterstock.com
Pic: Shutterstock.com

Insights

  • The Indian government has extended the QCO for cotton bales by 3 months to November 27, 2023.
  • The decision responds to concerns from ginning mills and industry organisations like the CAI over the stringent standards required, preparation, and the potential disruption to cotton arrival.
  • Indian ginners, mostly in the MSME category, welcomed the extension.
The Indian government has extended the quality control order (QCO) for cotton bales for three months. The order was to be implemented from September 1, 2023 when cotton arrival begins in north Indian states. However, India's cotton marketing season commences in October. 

A notification issued by the ministry of textiles on Tuesday stated that the Cotton Bales (Quality Control) Amendment Order, 2023, will now come into effect from November 27, 2023. According to the QCO, ginning mills will need to ensure stringent quality standards for the production of ginned cotton bales. The Indian quality regulator, the Bureau of Indian Standard (BIS), has prescribed the IS 1217:2019 standard for cotton bales. 

The Indian ginning industry was upset by the implementation of the QCO without proper preparation and awareness among thousands of ginners. The industry feared disruption in the arrival. Cotton arrival begins in north Indian states in September. Industry organisations, including the Cotton Association of India (CAI), had called for an extension to the proposed QCO. 

A prominent cotton trader from Gujarat, Chetan Bhojani told Fibre2Fashion, "The government needs to extend the QCO for at least one year. The ginning industry cannot implement the order in the coming season because most ginners are not prepared and aware of the regulation." 

The Indian ginning industry also argues that cotton is a natural commodity; therefore they have little control over moisture, trash, and strength in cotton. It also feels that Indian ginners are in the MSME category, so they cannot afford to set up expensive machines to ensure the quality standards. They are also unable to charge a premium for higher quality of the natural fibre because they cannot command the prices in the market. 

ALCHEMPro News Desk (KUL)

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