Indian Cotton Solutions

Introduction

Introduction

 

This is an innovation, a concept designed mainly with a "cotton farmer" orientation and balancing the thoughts of the entire Textile industry chain from Farmer to Weaver. In India cotton farmers are not being encouraged and are also not getting the benefits comparatively in the Textile chain. The capital-intensive spinning sector of cotton industry is also not happy with lot of cotton price fluctuation because there is one negative year in every 3 years in the market; due to this all cash-rich companies are affected heavily. In the supporting process, ginning mills are also not happy due to heavy fluctuations of industry. Here in this design, cotton farmer has great importance because they are cotton producers with their maximum efforts. India takes pride in being number one in cotton production in the world. This position is continuing from 2014. As new generation engineers we have developed this concept mainly by keeping in mind that Indian cotton farmer should get maximum advantage because their efforts are high and they are the key for India being in the 1st position of cotton producing. Indian government support is enormous by adopting the MSP (minimum support price) system for raw cotton and purchasing through CCI (cotton corporation of India). It is a great incentive but as per our observation so far, no special initiative from Indian Textile Industry to support cotton farmers directly. Considering all of this we developed this innovative concept focusing on the support to cotton farmers as our obligation. The farmers have put in a lot of effort and brought up India to 1st position among the cotton producing countries. So, now it is the duty and responsibility of every promoter of Indian textile industry to sustain the growth of cotton production and in turn develop the whole industry rather than the personal development and personal growth. As a helping hand to the cotton sector from cotton to yarn we came up with this solution of “Indian Cotton Solutions.”

 

Indian Cotton Solutions.com works with 4 basic concepts.

 

1.Farmer concept:

Farmers transport their produced cotton to ginning mills which we allot. LYP%(Lint Yield Percentage) will be checked. The farmer is given the choice of sale options and is free to choose out of 8 options. Once the option is chosen the ginning process takes place. The sales of seed and bales happen under our administration and then payment is made to farmers through bank account by our team. In this process, entire invoicing of sales for seed and lint bales is done upon Indian Cotton Solutions.com Pvt Ltd. The entire farmers online trading process is in Trade terminals 1 and 2.

 

2.Ginners concept:

Here ginners will buy the kappas from farmers as usual and process the ginning by checking LYP% themselves. Ginner is given freedom to choose over 8 sale options. After ginning process, administrator will sell the seed and lint bales and the invoice in this process will be under the name of Ginner. This online process takes place over Trade terminals 3 and 4.

 

3.Traders concept:

Traders can buy the output of the ginning process but they must be registered as separate individuals such as cotton seed buyers and cotton lint bales traders. Traders can buy cotton bales from farmers in Trade terminal 2 and to buy from ginners one must use Trade terminal 4. Traders can sell the commodities such as cotton lint bales using Trade terminals 5 & 6.

 

4.Spinners concept:

Spinners can sell their yarn and spinning waste in the same process as above system. Yarn traders should use Trade terminals 7 and 8. Terminal 7 is allocated only sales to Weavers and Yarn Importers at fixed rates. Terminal 8 is for normal sales without MSP (All buyers including Traders are allowed). Spinning waste trading is restricted to terminal no 9 with normal sales i.e. without MSP.

5.Spinners waste concept:

Spinners can sell their waste to various OE Spinners , Traders, exporters and Importers of our website so that they can directly deal both seller and buyer through our Terminal No 9, here only normal sales are entertained so all buyers must provide bank guranty or 20% cash margin and then they should participate in Trading and here Despatch must be happened only after full payment of invoice fro 20% cash margin buyers and  for Bank Guranty customers Despatch can be happened first and payment can make later as per due dates mentioend in invocie.

 

 

IN DETAIL...

 

Farmers:

Indian cotton farmers will be benefited by the value addition through Ginning, baling and selling directly to spinners without middlemen. They get maximum benefit of this system in various ways.

1.    They get minimum support price(MSP) always even when market does not favour.

2.    They get maximum price realisation by holding the bales and selling whenever market favours to them.

3.    They can enjoy commodity loan facility from bankers if they wish.

4.    More freedom to enjoy direct marketing to spinners, traders and exporters/importers.

5.    All payment realisation is only through NEFT or RTGS to their registered bank accounts.

6.    Individual farmers and other groups such as Rytu Mitra Group(RMG), Joint liability group(JLG) and Self-help group(SHG) should bring minimum 125 quintals to 500 quintals of crop.

 

Ginners:

Indian cotton Ginners will get the possible maximum advantage with our design and concept in various ways

1.    Here, Ginner will get triple advantage as they can go with both farmer’s concept, ginner’s concept and ginners can do their existing business by adding their own crop through “Add Ginner Own Crop” option. The Ginner will realise their ginning charges or lint bales amount within 15 days from crop adding date without holding the bales even for a day in their ginning mills. 

2.    Here ginners will get continuation work for longer period.

3.    Ginner does not require any working capital but should provide "Bank Guarantee" so that they can save maximum amount as working capital interest.

4.    Ginner will get full freedom for selection of quality and may reject if they find inferior quality.

5.    Ginner is solely responsible for quality of lint and timely production and delivery.

6.    Ginner can use this online platform in both ways, either for this concept or he can sell his own production through our online terminals without any extra margin money. Same Bank Guarantee will take care. 

 

Spinners:

Indian cotton spinners will get maximum possible advantage with this direct purchasing from farmers or ginners or traders in several ways.

1.    Quality cotton bales can be procured with quality reports through a click. 

2.    They will get maximum advantage in GST by doing own ginning through separate registration as a ginner. This is excelent benifit to spinners from this concept by selecting Stock option sale for self consumption. 

3.    They can get cotton bales to their godown upto 80% value upon their bank gurantee so that they will get maximum advantage in working capital interest in crores of rupees.

4.    They can cover and hold maximum of 6 months of their consumption with nominal interest by encouraging farmers.

5.    Mental and moral satisfaction for direct encouragement of Indian cotton farmers & Ginners. It may come under the advantage of Corporate Social Responsibility(CSR) which may benefit company’s goodwill.

6.    Spinners can sell their yarn and other waste products with the same concept without any further margin money, so that Spinners will get dual advantage. If they provide Bank Guarantee they will get 80% worth of BG of raw material in their godowns and they can sell any quantity of yarn in our trade terminal with same BG limits, so that they may get maximum advantage.

 

Weavers:

With this concept, all small & master weavers to big corporates will get yarn directly from spinners whatever the quantity is either 10 bags to 1000 tons per month with "Bank Guarantee" so that they will get 80% worth of amount of yarn in their godown. They can pay as per instalments provided by Indian Cotton Solutions.com. A lot of working capital interest benefit will be advantageous to all weavers. Small weavers in clusters such as Ichalkaranji, Bhiwandi, Erode, Coimbatore, Malegaon will be mainly focussed to reach their rescue for getting quality and quantity yarn timely with our concept. With this system corporate customers have more advantage of working capital saving.A lot of supervision on quality form our staff and assurance with free replacement if any major quality compalint. A systematic and error free claim settelement will be provided with our concept. There is a major advantage with our " Yarn MSP" system, a new concept works mainly on daily cotton MSP rates. In MSP system weavers get the yarn at fixed rate system. In normal sales option, spinners will quote prices based on their quality and demand and weaver or buyer having multiple options in same count. The rest assured that a quality and hassle free seriivces will be provided to weaver and buyers with nominal service charges offered by Indian Cotton Solutions.com.

 

Cotton Seed Buyer:

Here we are giving a lot of possible importance to cotton seed buyers. They can also avail the "Bank Gurantee" option as ultimate consumer so that we will supply 80% of equilateral quantity of their bank guranty submitted to us. However, seed buyer must ensure timely commitments of loading and payments by having the view that you are encouraging farmers as social responsibility because seed quantity will be huge in cotton industry. Seed buyer can procure a lot of quantity from Indian Cotton Solutions.com, a single source, so that they can plan their production for longer period in systematic way by maintaining minimum stock at their mills. 

 

Traders & Exporters: 

Our concept will take care of all traders and exporters of cotton seeds, cotton lint bales, cotton yarn in our system. However, one must provide Bank Gurantee to get the immediate free delivery and payment can be made as per agreed due dates or they have to provide min 20% cash deposit and they have to lift the products with 100% payment by RTGS or NEFT facility in farmer option sale or buyer option sale. One cannot avail MSP sales option. They should always maintain min 20% margin with us until they clear their submission of required mandatory documentation such as C-Forms, H-Forms and sales tax department clearance. 

 

Importers or foriegn buyers:

Our concept has the important role for importers/foreign buyers. They will be treated as ultimate consumers like Spinners, they can avail all facilities like spinners. They can purchase from any of the trade terminals either via MSP or normal sales. They will also get up to 6 months’ credit based on seller’s option choice. Importers should give their Bank guarantee or Letter of credit [revolving] from MNC banks to ICS.com. Then they will be allotted TTL (Total Trading limit) and based on that they can avail free trade in our terminals up to 80% TTL. Importers can avail our rate conversion tables for their quotes in ₹ per candy or USC/lb and vice versa.

 

Finally this concept is designed and developed by holding the views of different perspectives and having an ultimate goal of "Risk free Textile Industry promotion by any promoter in India". Cotton farmer should be encouraged to grow cotton and concentrate on how to get more productivity in fields to sustain No: 1 position of cotton producing country in the world.