Addressing a press conference after the 28th annual general meeting, MB Lal, chairman of CCI said that the crop damage has been negligible and the total crop in the country during the new cotton year is likely to be around 178 lakh bales, the record registered in the year 1996-97.

He also expressed readiness to commence operations in Maharashtra if it was allowed. Presently with the current monopoly procurement scheme in place the CCI cannot operate in the state.

Textile commissioner BC Khatua, who was also present at the conference stated that the monopoly scheme prevalent in Maharashtra has got an extension of one year with a rider that it will not get any further extensions.

He congratulated the chairman of CCI for attaining excellent results when all the sectors of the cottonindustry had faced a severe jolt last year due to several reasons including far-east currency crisis and low demand of yarn, both domestically and internationally.

For most of the 1997-98 season, the international price of cotton remained either lower or at par with the domestic prices in India. Hence, there was little demand for Indian cotton in the overseas market except some demand from Bangladesh.

On the other hand, a few mills imported cotton. The margins in export sales were negligible, as compared to other years.

Considering all these adverse factors during last year, the CCI still could manage operational profit of Rs 42.10 crore (before tax) and net profit of Rs 28.18 crore.

The total sales turnover and other income recorded during the year was Rs 1048 crore. The corporation succeeded in contracting for 48,000 bales export during the year under review.

The corporation continued its track record of successful marketing operations for the tenth year in a row and thus consolidated the gains ofits turn around strategy.

During the past ten years, the corporation has earned profit before tax of Rs 500 crore and a net profit after tax of Rs 320 crore. It has managed to wipe of its total accumulated losses of Rs 122.12 crore up to 1987-98. It has also repaid the entire accumulated government loan of Rs 173 crore.

On the occasion, the corporation committed to start processing of contamination free cotton to the extent of 10 per cent of its total purchases. This will help the quality conscious mills, particularly the 100 per cent export-oriented units (EOUs).

The corporation is trying to observe 100 per cent BIS standards to strengthen quality upgradation measures by way of its incentive scheme to the ginning and pressing factories.

The corporation has earmarked an amount of Rs 11 crore for its extension activities during the current year. The extension activities are aimed at improving yield of cotton per hectare and reduce the cost of cultivation to increase the income of cottongrowers.