Southern India Mills’ Association (SIMA) today thanked the Centre, particularly Union Textile Minister, Santhoshkumar Gangwar, for the move to introduce Direct Payment Deficiency System (DPDS) to help cotton farmers get better realisation for the produce, when the markets rates ruled below Minimum Support Price (MSP).

In a statement, SIMA Chairman, M. Senthilkumar said that the operation of DPDS through Agricultural Produce Market Committee (APMC) would greatly benefit the farmers and also the industry.

The textile commissioner announced the launch of the scheme during the current season at Hugenghat Taluk in Maharashtra on a pilot basis, he said.

He said that during the earlier season, the industry had to pay Rs.2,000 to Rs.3,000 higher than the regular price, when compared to the international price and particularly mills in Telangana and Andhra Pradesh (cotton producing States) had to source cotton from other States, as Cotton Corporation of India suspended sale during the cotton season between March and May 2015.

China Cotton Reserve Corporation incurred huge losses due to MSP operations and therefore, had introduced Direct Benefit Transfer System from the last cotton season, which had enabled Chinese spinning sector to source cotton at market prices, he said.

He expressed hope that similar scenario would soon be created in India and help create a win-win strategy for the farmers and the industry, apart from reducing losses for the Government.

He also requested the Government, particularly the Textile Commissioner foreseeing implementation of the scheme on a pilot basis, to design a suitable system and make the scheme successful.