- With core-competency in cotton marketing,
Senior Officials of the Corporation inter-act regularly
with all the client mills on domestic cotton scenario
comprising – crop
prospects, expected production, arrival pattern, quality
standards, price trends, vis-à-vis international
cotton scenario, so as to help them work out their cotton
coverage programme for immediate requirement as
well as lean period requirements.
- Available cotton of all varieties/grades is
offered for sale on uniform sale terms and indicative "daily
sale quotes" available on CCI's website http://www.cotcorp.gov.in
- Supplies of cotton made on type sample basis/actual
lot sample basis/specific grade of varieties with full
opportunity to choose the type of cotton more suitable
for producing required count of yarn. Offers from
buyers are considered by a High Level Committee and replied
on the same day both for confirmed sales and counters.
- Lot to lot inspection of quality offered to
the buyer at spot before confirming approval of
contracted quantity of cotton.
- All sales are made against the nominal deposit
of 5% value of the contracted quantity which helps the
mills to meet their working capital requirements and
programme cotton coverage for lean periods.
- To cut on lead period and facilitate deliveries
of cotton from the shelf, a unique facility in the
form of storage of cotton bales in the mills godown
{Godown Storage Facility} is extended to regular client
mills against an additional deposit of 5% value.
- Buyers meet held at a regular intervals at
important locations, for inter-action on all aspects
of cotton scenario as well as supplies and services
of the Corporation. The
feedback is used to reinforce the quality standards,
services and competitiveness.
By pursuing a Sales Policy amenable to
the changing needs
of the textile industry, CCI has assumed the role of
leadership through quality cotton supplies to many of
the most prestigious textile groups in the country including
EOUs. In the domestic cotton circles, CCI cotton and
its services are now a Brand Name and more
than 90% of its cotton procurement is consumed by the private
sector mills only.
1)
Segment-wise Domestic Sales
2) Model Domestic Sales
Contract
3) Model format for GSF Agreement - G.S.F
SEGMENT-WISE
DOMESTIC SLAES
|
Quantity
in Lakh Bales |
| GROUP |
1995-96 |
1996-97 |
1997-98 |
1998-99 |
1999-2000 |
2000-01 |
2001-02 |
2002-03 |
2003-04 |
2004-05 |
2005-06 |
| NTC |
1.43 |
1.15 |
1.07 |
0.72 |
0.74 |
0.82 |
0.47 |
0.71 |
0.78 |
1.16 |
1.30 |
| STC/CO-OPERATIVES |
4.47 |
4.54 |
5.33 |
2.61 |
3.38 |
4.17 |
8.57 |
4.71 |
7.03 |
17.01 |
13.38 |
| PRIVATE |
1.70 |
1.67 |
1.12 |
0.78 |
0.78 |
0.77 |
0.61 |
0.54 |
0.56 |
1.07 |
0.83 |
| TOTAL |
7.60 |
7.63 |
7.52 |
4.11 |
4.90 |
5.76 |
9.65 |
5.96 |
8.37 |
19.24 |
15.51 |
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MODEL
DOMESTIC SALES CONTRACT |
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THE
COTTON CORPORATION OF INDIA LIMITED
(A
GOVERNMENT OF INDIA UNDERTAKING)
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Branch
Office:___________________
Address_________________________
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| Contract No.______ |
Date:
--------------- |
Broker’s Name : __________
________________________ Mode
of Sales: Firm / Indent
________________________
________________________
________________________
Sub: Sale Contract
It is
confirmed that the Cotton Corporation of India Ltd., hereinafter referred to as
“the Seller” has sold and the____________________________ Mills Ltd., having
its Registered Office at ______________________________ hereinafter referred to
as “the Buyer” has purchased from the Seller _______ bales of indigenous cotton
on the terms and conditions set out herein below:
Indent
No./Date |
Quantity
in bales |
Variety |
Branch |
Crop
Year |
Spot
Rate |
Per Candy
Rs. |
Per
Qntl.
Rs. |
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TERMS & CONDITIONS:
1.
DEPOSIT MONEY:
a)
The buyer shall deposit
within seven days from the date of contract, a minimum amount equivalent to
___% of the value of contracted cotton towards Earnest Money. For deliveries
under GSF, buyer mill have to deposit additional 5% advance, which shall be
used towards payment of sales tax and other incidentals. The said amount will
be adjusted proportionately with each delivery and shortfall, if any, will be
made good in such a manner that ____% of the value of all the contracted cotton remaining to be delivered under different
indents will be maintained at all the time till the entire contracted cotton is
lifted. Buyer’s failure to deposit advance value of the contracted cotton
within the stipulated time shall make the contract liable for cancellation at
the option of the Seller.
b)
Interest benefit on proportionate deposit of lifted bales will be allowed
at the rate of ___% p.a. from the date of realization of deposit till payment
realized for lifting of said bales.
c)
In case of lifting of bales from GSF, interest benefit on deposit of
lifted bales will be allowed ___% p.a. only on proportionate advance deposit
adjusted after deduction of Central Sales Tax/VAT amount.
2.
SELECTION OF THE
CONTRACTED COTTON:
The
Buyer or its authorised representative shall select
the cotton under this contract within 10 days from the date of contract/date of
intimation of readiness of cotton bales depending on the mode of sales as
mentioned above, however such selection shall be prior to the date of delivery
of the cotton. If the contracted quantity is up to 500 bales, the Buyer has to
make 100% approval without any shortfall and for contracted quantity exceeding
500 bales, a minimum 90% of the contracted quantity has to be selected and
approved. The buyer or its authorised representative
should fully satisfy itself before completing selection. Selection once made as
per indicated quality parameters shall be final and no dispute regarding
quality of cotton shall be entertained in respect of the selected cotton.
3.
WEIGHMENT,
DELIVERY AND PAYMENT TERMS:
Buyer shall be entitled to a free delivery period to take delivery of the
contracted cotton against full payment of cotton value and taxes, as detailed
hereunder:
a) _________________ days from the date of contract.
b) _________________ days from the date of intimation
of readiness of cotton bales.
100% weighment of bales shall be carried out at
spot at the time of delivery in the presence of the Buyer’s
representative/controller and such weighment shall be
final and binding. In case of advance payment by the Buyer, the payment shall
be worked out for weight calculated at
the rate of 48 candies per 100 bales. All sales shall be on spot basis & expenses after weighment, shall be on the Buyer’s account.
All payments shall be made by the Buyer in crossed A/c Payee Demand
Drafts, Pay Orders, Banker’s Cheques or by means of Electronic Fund Transfer only. In case of payment by cheques, or through Electronic Fund Transfer delivery shall be allowed to take place
only on confirmation of realisation of payment in the
Seller’s account.
The Buyer has to effect payment and take delivery of bales within the
free period given from date of contract/ date of
confirmation. In case of failure
on the part of the Buyer to do so, the contract is liable to be cancelled at the
option of the Seller. In the event of
such a cancellation, the Seller shall be entitled to resell the entire or
balance quantity thereof, at any time and in any manner it deems fit and at the
same time, reserving its right to recover any damage / losses sustained by such
resale.
4.CARRYING OF COTTON:
Without prejudice to the provisions stated above, the Seller may carry or
hold cotton on behalf of the Buyer beyond free delivery period, subject to
Buyer complying with the following conditions:
a)
The Buyer shall make a
request to the Seller to carry cotton on its behalf, before expiry of free
delivery period or give lifting schedule for the balance unlifted quantity. The buyer shall also make advance payment of carrying charges up to
the period cotton is required to be carried over.
b)The rate of carrying
charges shall be as mentioned hereunder:
@ __ per
month per 30 days for first 60 days and thereafter @ __ per month per 30 days
till the delivery of cotton. The amount
of carrying charges shall be calculated on monthly rest basis. Till payment of
the price of the bales to be delivered is fully realised,
carrying charges as per the aforesaid rates shall be chargeable. Such carrying
charges will be paid in advance as stated in para 4(a) above or alongwith the price of the contracted
cotton before lifting of bales under this contract as the case may be.
If the due date for payment falls on holiday (declared by the
Corporation)/ Sunday, the next working day shall be considered as due date for
the purpose of calculating the carrying charges.
Notwithstanding the above conditions and without any
prejudice thereto, the Seller may carry cotton or any part thereof on behalf of
Buyer for a maximum period of 60 days after the expiry of grace period or for
such further extended period as may be allowed at the entire discretion of the
Seller. The Buyer shall make full payment of value of cotton and due amount of
carrying charges against deliveries during extended period. If payment is not
made and delivery not taken within such extended period also, the Seller may
forfeit the said advance payment inclusive of advance payment made towards
carrying charges and resell the cotton at any time and in any manner it deems
fit and recover the losses / damages from the Buyer, if any, sustained in such
a resale, inclusive of price difference, carrying charges and interest. The provisions under this contract with
respect to a breach of the contract shall be invoked and operated automatically
without any need for a notice from the Seller to the Buyer.
5.LATE
LIFTING CHARGES:
If after
making payment of the value of cotton sold under this contract, the Buyer does
not take physical delivery of cotton within twenty days from the date of making
payment, the Buyer shall be liable to pay late lifting charges @ 0.5% per month
per 30 days from 21st day of payment of such unlifted stock till the delivery of cotton is taken.
6.
CASH DISCOUNT :
The buyer shall be entitled for cash discount at the rate of -----% p.a.
on pro-rata basis for unavailed free period i.e. for
the number of days for which payment is realised earlier than required as per terms of the contract.
In case of deliveries under L/C and B/G the cash discount @ ___% p.a. on
pro-rata basis for unavailed free period from the
date of realisation of payment will be allowed by the
Corporation provided
a. The discounting of L/C is
done at the request of the buyers and
b.
All the expenditure in
connection with discounting of L/C is borne by the buyers.
7.SALES TAX / VALUE ADDED TAX (VAT) :
The Buyer shall pay Sales Tax/VAT on the value of cotton at the rate
applicable on the date of taking delivery. Buyer registered under the relevant Sales Tax Act shall furnish
necessary ‘C’ forms / Declaration forms within 3 days from the date of
receiving seller’s invoice. Failure to
provide ‘C’ form / Declaration forms shall entitle the seller to recover
additional 4% Sales Tax from the buyer.
8.INTEREST :
The rate of interest on old dues, deliveries under clean credit, L/C and
against Bank Guarantee will be @ ____% per annum, on monthly rest basis.
9.PENAL RATE OF INTEREST :
Penal Interest on overdue UB, L/C and Bank Guarantee
will be charged @ ____% per annum on monthly rest basis.
10.SERVICE CHARGES ON GSF BALES UNLIFTED FOR MORE THAN 30 DAYS :
In case the buyer is granted GSF facility and the
bales remain unlifted for more than 30 days from the
date of receipt of bales in GSF godown, service
charges @ Rs.10/- per bale for each 30 days will be charged from the buyer. In
case of part of month Rs.5/- per bale for the period of 15 days or less and
Rs.10/- per bale for more than 15 days upto 30 days
will be charged from the buyer.
11.PROCESSING FEES IN
CASE OF DELIVERY AGAINST L/C AND ITS
DISCOUNTING.
The Seller shall charge processing fees on each L/C
discounted @ 0.10% of its value or Rs.200/-, whichever is higher.
12.The
Corporation reserves its rights to amend, alter, modify or change any of the
terms and conditions looking to the availability of stocks, credit worthiness
and past performance of the buyer etc.
13.ARBITRATION:
In case of any dispute or difference arising out of or in relation to the
contract, except any dispute regarding the quality of cotton which is
specifically excluded under clause 2 of the Contract, will be referred to an
Arbitrator (other than an employee of the Seller) to be appointed by the
Director (Marketing) or the Director (Finance) of the Seller and the decision
of the arbitrator shall be final and binding upon the parties hereto. The
Arbitration will be governed by the provisions of the Arbitration and
Conciliation Act, 1996 or any statutory amendments or re-enactment
thereof.
14.FORCE MAJEURE:
Should any circumstances beyond the control of the Seller such as natural
calamity, strike, riot, elements, war, quarantine, fire or any act of
circumstances of force majeure, the contract shall be
cancelled to the extent of damage/destruction/shortfall arising due to the
above causes. The Seller shall intimate quantum of such shortfall to the Buyer
within 30 days. The Buyer hereby categorically agrees to such cancellation of
shortfall quantity and shall neither have recourse to any action, legal or
otherwise, nor demand any compensation in respect thereof.
The duplicate copy of this contract duly signed by the Buyer be returned within 7 days from the date of its receipt in
token of confirmation of all the terms and conditions of this contract. If
signed copy is not received within stipulated time, the contract shall be
treated as accepted and confirmed by the Buyer.
WE CONFIRM
|
FOR THE COTTON CORPORATION OF INDIA LTD. |
For
& on behalf of the Buyer
|
(AUTHORISED SIGNATORY) |
(Name of the Authorised person with Seal)
|
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Model format for GSF Agreement
- G.S.F |
This Agreement
made at ______ on this ____ day of _____ 2002 BETWEEN
the Cotton Corporation of India Limited, incorporated
under the Companies Act, 1956 and a wholly owned Government
of India undertaking having its registered office at
Air India Building, 12th Floor, Nariman Point, Mumbai – 400
021 and one of its branch office at____________________________________
_______________________ and hereinafter referred to
as “the Seller” (which
expression shall unless it be repugnant to the context
or meaning thereof be deemed to mean and include its
successors and assigns) of the One Part AND _________
Mills Ltd. incorporated under the ________ Act and
having its registered office at ____________________________________________ ______ and
branch office at ______________________________________________
and hereinafter referred to as “ the Buyer” (which
expression shall unless it be repugnant to the context
or meaning thereof be deemed to mean and include its
successors, assigns and any Liquidator or Assignee
appointed thereof) of the Other part .WHEREAS
the Buyer approached the Seller for providing them
Godown Storage Facility (hereinafter referred to as “GSF”)
for the F.P. Cotton bales purchased by Buyer under
various sale contracts with the Seller entered into
and to be entered into during the Cotton Season __________
i.e. from _________ to __________ and under the scheme
of Godown Storage Facility against 10% deposit in advance
by the Buyer, Seller will arrange to transport the
bales and store in the Buyer nominated godown under
lock and key of the Seller in the Buyer’s Mill
at _____________ and deliveries to be effected against
payment made by the Buyer from time to time.AND WHEREAS
the Seller agreed to extend the said Godown Storage
Facility to the Buyer.NOW IT IS AGREED BY AND BETWEEN
THE PARTIES as follows:
The
Buyer will take delivery of the cotton bales under
GSF within maximum period of 60 days after the expiry
of grace period or for such further extended period
as may be allowed at the entire discretion of the
Seller.
The
Buyer will provide rent-free godown(s) to the entire
satisfaction of the Seller duly inspected by the
officials of the Seller and godown so provided will
be completely under the custody and lock and key
of the Seller. Since the Godown Storage Facility
has been given for his convenience, the Buyer shall
not be entitled to receive any godown rent from the
Seller and shall not be entitled to receive any deduction
or remission whatsoever in the carrying charges payable
by the Buyer.
The
Buyer will deposit in advance 10% of the value of
cotton opted under GSF with the Seller for despatching
of bales under GSF. On receipt of the said advance,
the specific lots selected by the Buyer will be despatched
to the said godown as per the said request.
The
bales shall be weighed at upcountry spot in the presence
of the Buyer’s representative/controller and
such weighment shall be final and binding. It is
agreed that invoices shall be raised on the basis
of such spot weighment.
In
case the Buyer desires the Seller to arrange for
transportation, the Buyer will make a written request
and pay the cost of transportation in advance to
the Seller. On receipt of such advance payment as
well as the advance payment under clause (3) of this
agreement, the dispatch instructions will be issued
by the Seller. It is agreed that payment of the transportation
charges and transit insurance premium (which will
be incurred by the Seller) will be on behalf of and
on account of the Buyer. If the Buyer nominates their
transporter, the same should be out of the transporters
empanelled with the Seller and all the transportation
charges will be paid by the Buyer directly. In case
the transporter nominated by the Buyer is not empanelled
with the Seller, the Buyer indemnifies the Seller
for any loss occurred to the Seller due to non-deliverance
of goods within reasonable time or for any loss due
to any mishappening including theft during transit
or otherwise.
The
Seller will not be responsible for delay in dispatches
on account of non-availability of transport facilities
and also for any other circumstances beyond its control.
Till
the payment is realised, carrying
charges as per rate specified in the contract as
revised from time to time shall be applicable. Such
carrying charges will have to be paid by the Buyer
alongwith value of cotton before lifting of bales
from GSF godowns.
The
Buyer will provide normal security arrangement for
movement of stock and also for stacking/destacking,
loading and unloading goods from the godown. At the
time of receiving the goods in the godown, arrangements
for making necessary entries will be made by the Buyer
and the particulars of vehicles as well as goods received
in the godown will be recorded. For removal of the
goods, if necessary, out of the Buyer’s godown,
similar record will be kept by the Buyer’s Security
Department.
The Buyer will ensure proper safety
of the goods lying in its godown. In case of any incidents
leading to or tending to lead to any loss or damage
to the goods lying in its godown, the Buyer shall give
necessary intimation immediately to the Seller. Further,
the locks being sealed, in case of breakage/tampering
of the seal the necessary intimation thereof shall
be given by the Buyer to the Seller without any delay
for verification and any other action deemed necessary.
If
there is a shortfall of any quantity of the contracted
goods stored in the Buyer’s
godown, the same will be on the Buyer’s account
and it will be the Buyer’s responsibility to
make it good.
In the case of any loss or damage
occurring to the goods and if the claim settled by
the Insurance Company falls short of the sale price
and carrying charges, the deficit shall be made good
by the Buyer.
The
premium paid by the seller for the storage insurance
for the stocks stored under this Agreement will form
part of the carrying charges payable by the Buyer.
The
delivery of bales to the Buyer will be made by the
Seller directly against full payment including payment
of carrying charges, taxes as applicable and other
charges payable by the Buyer. Delivery will be made
in lots of not less than 50 bales each.
The
Buyer shall pay Sales Tax on the value of cotton at
the rate applicable on the date of taking delivery.
The Buyer registered under the relevant Sales Tax Act
shall furnish the necessary ‘C’ forms/Declaration
forms at the time of taking delivery. Failure to provide
the ‘C’ forms/declaration forms shall entitle
the Seller to recover additional 4% Sales Tax from
the Buyer.
All expenses
upto weighment shall be on the Seller’s account.
Thereafter, all expenses/charges etc. shall be on the
Buyer’s
account. With regard to other charges/expenses, if
any, the decision of the Seller will be final.
Subject
to the provisions herein contained, the bales will
be despatched by the Seller as consignor and to the
Buyer as consignee on Seller’s account.
Notwithstanding
that the property in the goods may have passed to the
Buyer, the Seller as the unpaid seller of goods will
be entitled to rights and lien on the goods by implication
of law.
In order to protect
the rights and lien of the Seller as the unpaid seller
of goods, it is expressly agreed by and between the
parties hereto as follows:
- The transporter will
deliver the bales only to an authorised representative
of the Seller and the transporter will not deliver
the bales directly to the Buyer. Under no circumstances
the Buyer will claim delivery, hypothecate or
transfer the bales until and unless the Buyer
has paid to the Seller in full the price of the
goods payable, the carrying charges, interest & all
other costs & charges payable as per sale
contract.
- During the period of storage of the goods in
the Buyer’s
godown, the Buyer and/or its creditors and/or
any person claiming through or under it shall
not make any claim or demand over the goods so
stored which is prejudicial in any manner to
the provisions of this Agreement and the Buyer
or anyone on its behalf shall not obstruct or
deny the Seller’s access
to or the clearance and/or removal of the goods
by the Seller in its absolute discretion.
- In the event of any labour unrest in the Buyer’s
mill or lock out or closure of the same or any
other such eventuality, the Buyer shall ensure
that the bales lying in its godown under this
Agreement shall not be involved or shall not
be a part of any such dispute, and the Buyer
shall extend all necessary cooperation and assistance
to the Seller, including rendering all help for
legal recourse, for facilitating the Seller to
remove the bales from the godown and to exercise
all its rights thereon as the unpaid Seller.
- In the event of the winding up or liquidation
of the Buyer’s
mill for any reason whatsoever or in the event
of any legal proceedings commencing or an order
being passed against the Buyer for attachment/injunction
of its property or in any manner adversely affecting
the same, then and in that event and in order
to protect the Seller’s lien over the goods
as the unpaid seller, the Seller shall be entitled
to remove the bales from the godown without the
knowledge or consent of the Buyer and/or the
Seller will also be entitled to resell the said
bales for the realisation of its dues at the
entire risk, costs and consequences of the Buyer.
In case any
additional facility for payment, delivery or any
other part of the Agreement is allowed to the buyer,
the same under no circumstances, shall override the
terms and conditions of this GSF Agreement and in
no way shall make any of the terms and conditions
of this Agreement as redundant or void.
This Agreement shall also
cover the bales contracted during the period from__________
to __________ but remained unlifted/undelivered even
after _________.
The Seller reserves the
right to withdraw/restrict this facility for any
act of default/unsatisfactory performance in respect
of sale contracts entered into during the season.
The above terms & conditions
are in addition to the usual terms and conditions
contained in the related sale contracts and under
no circumstances shall over-ride the usual terms
and conditions as contained in the related sale
contracts for sale of cotton by the Seller PROVIDED THAT it shall
not be obligatory upon the Seller to resort the arbitration
clause contained in the related sale contracts and
the Seller at its sole option will be entitled to apply
to a court of appropriate jurisdiction for any orders
or reliefs under this GSF Agreement without prejudice
to its right to resort to the said arbitration clause
at any time for any other remedies or reliefs.IN WITNESS
WHEREOF THE PARTIES HAVE SET their hands at _________________________
on the day, month and year first hereinabove written.Signed,
Sealed and delivered by the within-
Named One Part, The Cotton Corporation
Of India Limited _______________________________
_________________________________________________ Signed, Sealed and delivered
by the within
Named Other part, _______________________________________________________________________________
Witnesses:
1.________________________________________________
2.________________________________________________
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