Amid high Cotton prices in the country, KVIC’s Products Price Adjustment Reserve Fund Saves Khadi Institutions from Steep Price Rise

Mar 14, 2022 | Business


A far-sighted policy decision taken by Khadi and Village Industries Commission (KVIC) in 2018, to create a special reserve fund to deal with market fluctuations and other eventualities, has come as a savior for all Khadi institutions across the country, just when the entire textile industry is grappling with a steep price hike of the raw cotton.


In 2018, KVIC had decided to create a Products Price Adjustment Account (PPA), a Reserve Fund for its 5 Central Sliver Plants (CSPs), to meet market-driven eventualities. These CSPs are purchasing cotton and converting it into sliver and roving for the supply of Khadi Institutions, which converts it into yarn and fabric. The PPA fund was created by transferring just 50 paise to it from each kilogram of the total sliver/roving soldby these CSPs.


Three years down the line, when the entire textile sector is facing the brunt of short-supply and a steep hike in the price of raw cotton, KVIC has decided not to increase the cost of sliver/roving being supplied to the Khadi institutions by its sliver plants across the country despite the cotton prices surging by over 110 percent. Instead, KVIC will bear the excess cost of Rs 4.06 crore on procurement of raw cotton bales at the increased rates from the PPA Fund.


It is pertinent to mention here that the price of raw cotton has increased from Rs 36,000 per candy to Rs 78,000 per candy (each candy weighs 365 KG) in the last 16 months. This has put a direct impact on production of cotton apparels by major textile companiesacross the country,that have also reduced the production by 30 to 35 percent in the recent months.


This decision of KVIC, which has been taken for the first time to create such reserve fund, comes as a big relief for over 2700 registered Khadi institutions and over 8000 Khadi India Outlets that are already grappling with production&marketing challenges due to restrictions imposed during Covid-19 pandemic.


KVIC largely purchases cotton bales from Cotton Corporation of India (CCI) for its 5 CSPs located at Kuttur, Chitradurga, Sehore, Raebareli and Hajipur, that convert various varieties of cotton into sliver and roving. The Cotton varieties purchased by KVIC are BB mod, Y-1/S-4, H-4/J-34, LRA/MECH, MCU_5 and DCH_32. The Price difference reported in these days is from Rs 13000 per candy to Rs 40000 per candy of these varieties. KVIC will require 6370 cotton bales of different varieties by 31st of March 2022 which, as per the current rate, will cost Rs 13.25 crores as against Rs 9.20 crores as per the old rates.The price difference of Rs 4.05 crores will be met from the PPA reserve created by KVIC in these days.


The reserve fund has ensured that the Khadi institutions in the country remain unaffected by the price rise and the prices of Khadi cotton apparels also do not go up.


KVIC Chairman Shri Vinai Kumar Saxena said that this decision would save both the Khadi institutions as well as the Khadi buyers from any adverse impact of price rise. “Short supply of raw cotton from CCI and the consequent rise in price of cotton has hit the entire textile industry including Khadi. But KVIC has decided to continue the supply of roving/sliver to Khadi institutions at the old rates so as mitigate any financial burden on the institutions. At the same time, it will also benefit crores of Khadi buyers as there will be no increase in the price of Khadi fabric and garments. It is KVIC’s commitment to every Khadi buyer to provide Khadi at affordable prices in tune with Hon’ble Prime Minister’s vision of “Khadi for Nation”, Saxena said.


Khadi has nearly 9 percent share in the Indian textile industry and produces nearly 150 million Sq Mtr fabric per year. With this decision, Khadi has emerged as the only entity that is unaffected by the steep price rise of cotton. Khadi buyers and Khadi institutions, thus, have a reason to rejoice.


Khadi Institutions have unanimously welcomed the move and thanked KVIC for the big support saying this would safeguard the institutions against any market adversities. “Cotton prices have gone up by over Rs 70 per KG. This step of KVIC will help Khadi Institutions survive during these difficult times. Any hike in the price of sliver and roving would have put a huge financial burden on Khadi institutions that are yet to recover from the impact of Covid19,” said Shri Sarthank Singla, Secretary of Khadi Udyog Jathlana, Ambala.


Shri Sanjay Shah of Bharat Khadi Gramodyog Sangh, Ahmedabad, said that hike in cotton prices would have a direct bearing on the production of Khadi and wages of the artisans. “If the cost of raw material goes up, the production will naturally come down and so will the wages being given to the artisans. I am thankful to KVIC that has saved the institutions and artisans from the crisis,” he said.


Cotton Price Comparison











Sr No

Cotton Variety

Old Price per Candy (in Rs)

Current Price per Candy (in Rs)

Price Difference per KG (in Rs)

1

BB Mod

50,000

76,000

73

2

Y-1 / S-4

45,000

58,000

37

3

H-4 / J-34

48,000

74,000

74

4

LRA/Mech

46,500

70,000

66

5

MCU_5

64,000

95,000

88

6

DCH_32

75,000

1,15,000

113




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“Flying High Over the Cotton Field” by Robert W. Coggin will be featured in LA Times 2022

Feb 7, 2022 | Business

Coggins’ new book snags readers’ attention with a story of a poor farm boy who spent his early years in a small Cotton Mill Village in Georgia and later moves up the ladder to lead a successful life. A few years later, he and his family moved to a large farm, where his daily chores included picking cotton or plowing the fields behind an old mule.

San Diego, CA, USA – WEBWIRE –

With hard work and willingness to go anywhere, there is no limit to what anyone can achieve.



Robert W. Coggin, author of “Flying High Over the Cotton Field” (Independently published, 2018), will be featured at the LA Times Festival of Books in Spring 2022. This book chronicles how a boy raised on a farm leveraged the Work Ethic his Dad instilled in him and the Common Sense he inhereted from his Mom to achieve much success and a wonderful life.


Bob Coggin, the protagonist, was not born with a silver spoon in his mouth. When he was older, he enlisted in the United States Air Force in search of greener pastures, only to get a taste of what life could be like away from the farm. He was employed as a “ramp agent” leading to an amazing career that took him from a small farm to upper management positions at major commercial airlines, contributing significantly to Delta’s success and Coggin’s personal and professional growth.


“Flying High Over the Cotton Field” is a remarkable story about one man’s strong work ethic and achievement, with nods to the many people who contributed to his success. This book has received “5-Star Reviews” from Amazon Readers, including Verified Purchasers, denoting that Coggins’ story will resonate with Delta enthusiasts as well as readers everywhere who value good old-fashioned hard work.


According to Amazon reviewer Veronique N. Deblois, she enjoyed reading the book about the author’s life as a “…veteran of the travel industry and what an amazing career it was for Coggin.” Interested? Find out more and grab a copy of Rober Cogin’s “Flying High Over the Cotton Field” on Amazon and come visit the LA Times Festival of Books in Spring 2022!


Flying High Over the Cotton Field

Author | Robert W.Coggin

Genre | Biographies & Memoirs

Publisher |Independently Published

Published date | November 28, 2018


Author Bio


Robert Coggin, author of “Flying High Over the Cotton Field,” grew up in the Sargent and Handy communities of Georgia. He has been active in community activities and has served on a number of community boards, including the University of West Georgia Newnan Advisory Board, the Samaritan Clinic Board, the Boys and Girls Club, the Newnan Coweta Chamber of Commerce, and the Chick-fil-A Peach Bowl.


He went to Western High School as well as Alabama Christian College. He also completed the Kellogg Business School’s Executive MBA Program. He had a 42-year career with Delta Airlines, where he was employed as a Ramp Service Ag


In May of 1998, he announced his retirement from Delta. At the time of his retirement, he was Executive Vice President of Sales, Marketing, Planning, and Technology. He was responsible for Delta’s expansion with a strong emphasis on international growth and partnerships with International airlines. He also established a successful Travel & Transportation Consulting practice in June 1998, with a strong emphasis on technology in the travel industry.


After 9/11 consulting in the travel industry disappeared and he accepted a position as EX VP in the Travel Distribution Division of Cendant which later became Travelport. Where he was later promoted to Vice Chairman of Travelport. He retired from Travelport in September 2011.

“Flying High Over the Cotton Field” by Robert W. Coggin will be featured in Tucson 2022

Feb 6, 2022 | Business

Coggins’ new book snags readers’ attention with a story of a poor farm boy who spent his early years in a small Cotton Mill Village in Georgia and later moves up the ladder to lead a successful life. A few years later, he and his family moved to a large farm, where his daily chores included picking cotton or plowing the fields behind an old mule.

San Diego, CA, USA – WEBWIRE –

With hard work and willingness to go anywhere, there is no limit to what anyone can achieve.



Robert W. Coggin, author of “Flying High Over the Cotton Field” (Independently published, 2018), will be featured at the Tucson Festival of Books in Spring 2022. This book chronicles how a boy raised on a farm leveraged the Work Ethic his Dad instilled in him and the Common Sense he inhereted from his Mom to achieve much success and a wonderful life. Bob Coggin, the protagonist, was not born with a silver spoon in his mouth.


When he was older, he enlisted in the United States Air Force in search of greener pastures, only to get a taste of what life could be like away from the farm. He was employed as a “ramp agent” leading to an amazing career that took him from a small farm to upper management positions at major commercial airlines, contributing significantly to Delta’s success and Coggin’s personal and professional growth.


“Flying High Over the Cotton Field” is a remarkable story about one man’s strong work ethic and achievement, with nods to the many people who contributed to his success. This book has received “5-Star Reviews” from Amazon Readers, including Verified Purchasers, denoting that Coggins’ story will resonate with Delta enthusiasts as well as readers everywhere who value good old-fashioned hard work.


According to Amazon reviewer Veronique N. Deblois, she enjoyed reading the book about the author’s life as a “… veteran of the travel industry and what an amazing career it was for Coggin.” Interested? Find out more and grab a copy of Rober Cogin’s “Flying High Over the Cotton Field” on Amazon and come visit the Tucson Festival of Books in Spring 2022!


Flying High Over the Cotton Field

Author | Robert W.Coggin

Genre | Biographies & Memoirs

Publisher |Independently Published

Published date | November 28, 2018


Author Bio


Robert Coggin, author of “Flying High Over the Cotton Field,” grew up in the Sargent and Handy communities of Georgia. He has been active in community activities and has served on a number of community boards, including the University of West Georgia Newnan Advisory Board, the Samaritan Clinic Board, the Boys and Girls Club, the Newnan Coweta Chamber of Commerce, and the Chick-fil-A Peach Bowl.


He went to Western High School as well as Alabama Christian College. He also completed the Kellogg Business School’s Executive MBA Program. He had a 42-year career with Delta Airlines, where he was employed as a Ramp Service Ag


In May of 1998, he announced his retirement from Delta. At the time of his retirement, he was Executive Vice President of Sales, Marketing, Planning, and Technology. He was responsible for Delta’s expansion with a strong emphasis on international growth and partnerships with International airlines. He also established a successful Travel & Transportation Consulting practice in June 1998, with a strong emphasis on technology in the travel industry.


After 9/11 consulting in the travel industry disappeared and he accepted a position as EX VP in the Travel Distribution Division of Cendant which later became Travelport. Where he was later promoted to Vice Chairman of Travelport. He retired from Travelport in September 2011.

Resolve Cotton Pricing issue in the spirit of Collaboration rather than competition.- Shri Piyush Goyal speaks to Textile Industry players;

Nov 18, 2021 | Business

“Resolve Cotton Pricing issue in the spirit of Collaboration rather than competition,” said Shri Piyush Goyal, Union Minister of Textiles, Commerce & Industry, Consumer Affairs and Food & Public Distribution, while speaking to Textile Industry players in a meeting, here today. He asked the Textile Industry leaders not to push Government to intervene. 

Shri Goyal cautioned the cotton bale traders from manipulation of prices or do  hoarding to make unfair profits.The Minister further stated that manufacturing sectors should not depend on Government support for growth. Too much dependence of State support is not healthy for the robust growth of the sector. The  Minister was intervening to resolve issues regarding cotton yarn prices between cotton yarn manufacturers and down stream Textile industry.

He said that Farmers interests is being taken care off for the first time as they are now getting better cotton prices supported by very good base MSP. Pricing issue of cotton bales and yarn for the Industry should not be allowed  in any way to impact the better prices which farmers are getting, he added.

Shri Goyal said that idea of short term Super normal profits by a section of players in Textile value chain is not sustainable. “No one should force the Government to intervene. Let free and fair  market forces play out .Super normal profits should not be booked for short term goals”, he said.

The Minister further mentioned   that whole value chain gets adversely impacted even if one section  gets weak. Aatma Nirbhar bharat applies to every one in value chain. All must get benefitted and all must grow. He said that  Cotton bale and yarn prices need to be such that all get benefitted . He exhorted that all stake holders in Textile Value chain need to support each other for long term sustainable growth.

Shri Goyal cautioned the cotton bale traders from manipulation of prices or do any hoarding to make unfair profits. The Minister added that reasonable profits are good and acceptable but undue advantage can not be allowed to be taken by any one value chain.  He also  said that no one   would be allowed to come in the way of better cotton prices to Farmers.

It may be noted that cotton production is estimated at 362.18 lakh bales. The cotton season 2021-22 commenced with an estimated carry over stock of 73.20 lakh bales (COCPC meeting dated 12.11.2021). Opening stock in the country is adequate to meet about two and half month’s mills consumption.  Cotton prices are ruling above MSP level by about 40% i.e. Rs.8500 per quintal as against MSP rate of Rs.6,025/ -per quintal. Farmers are getting reasonably good prices for their produce which is in tandem with other agri-commodities as well.

World cotton acreage is expected to increase by 4% to 33.27 million hectare as against 31.97 million hectare of last year. Whereas world cotton production is projected to increase by 6% to 1512 lakh bales (25.72 MMT) as against 1426 Lakh bales (24.26 MMT) of last year and world cotton consumption is expected to increase by 2% to 1530 lakh bales (26.01 MMT) as against 1505 lakh bales (25.60 MMT) of last year.

Earlier also, Shri Goyal  held a review meeting of Cotton Corporation of India (CCI)  to  discuss ways to strengthen procurement processes to further support livelihoods of our cotton farmers.

Minister of State for Textiles and Railways, Smt. Darshna Jardosh, Shri U.P. Singh, Secretary    Textiles, Shri Pradeep Agarwal, CMD, CCI and senior officials of CCI, Textiles industry players and exporters  participated in the meeting. 

CCI is appointed as a Central Nodal Agency under Ministry of Textiles for undertaking Minimum Support Prices (MSP) operations for cotton. It safeguards the economic interest of cotton farmers,  ensures the benefit of MSP to bonafide cotton farmers and undertakes MSP Operations in the event prices of Fair Average Quality (FAQ) grade kapas fall below the MSP level.

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Cabinet approves incurring expenditure for reimbursing the losses under MSP operations for cotton during the cotton season (October to September) 2014-15 to 2020-21

Nov 10, 2021 | Business

The Cabinet Committee on Economic Affairs chaired by Prime Minister, Shri Narendra Modi, has given its approval for committed price support of Rs.17,408.85 crore to the Cotton Corporation of India (CCI) for the cotton seasons from 2014-15 to 2020-21 (upto 30.09.2021).

In order to safeguard the interests of the cotton farmers, it is expedient to conduct price support operations in cotton years 2014-15 to 2020-21 as cotton prices touched the MSP prices.  Its implementation enhances the inclusiveness of the cotton farmers in the economic activity of the country.  Price support operations help stabilize the cotton prices and alleviate farmer’s distress.

Cotton is one of the most important cash crops and plays a major role in sustaining livelihood of around 58 lakh cotton farmers and 400 to 500 lakh people engaged in related activities such as cotton processing and trade.

During cotton season 202-21, area under cotton cultivation was 133 lakh hectares with estimated production of 360 lakh bales, which account for around 25% of total global cotton production.  Government of India based on the recommendations of CACP fixes MSP for seed cotton (kapas).

Government of India appoints CCI as Central Nodal agency and CCI is mandated to undertake MSP in cotton by procuring all FAQ grade cotton from farmers without any quantitative celling, as and when cotton prices fall below MSP level.  MSP operations protect cotton farmers from distress sale during any adverse price situation.

MSP operations being sovereign function in nature motivates cotton farmers in the country to keep their sustained interest in cotton cultivation so as to make India Atambirbhar for quality cotton which is a raw material for spinning industry.  CCI keep its infrastructure ready in all 11 major cotton growing States by opening 474 procurement centres in 143 districts.

During global pandemic in the last two cotton seasons (2019-20 and 2020-21), CCI procured around 1/3rd of the cotton production in the country i.e. about 200 lakh bales and disbursed more than Rs.55,000/- crore directly in the bank accounts of around 40 lakh farmers.

For current cotton season i.e. 2021-022, CCI has already made all adequate arrangements in all 11 major cotton growing states including deployment of man power at more than 450 procurement centres, so as to meet any eventuality of MSP operations.

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