The price volatility often eroded the working capital and profit margins of the industry, restricting the industry growth rate between 6 and 8 per cent against the potential growth rate of 12 to 16 per cent. P Nataraj, Chairman, SIMA said that, “Cotton productivity has stagnated at 500-550 kg per hectare against over 1,500 kg/hec achieved by over 20 countries. Australia for instance, has achieved productivity of 2,200 kg/hec. Further the quality of Indian cotton is much inferior when compared to the imported fibre, affecting both the farmers and the industry,” giving importance to the requirement for reintroducing PSF and TMC schemes.

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