The Cotton Corporation of India Ltd.
The Cotton Corporation of India Ltd.
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Sale of Cotton - Segment Wise Domestic Sales

 

  • 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

THE COTTON CORPORATION OF INDIA LIMITED
(A GOVERNMENT OF INDIA UNDERTAKING)

Branch Office:___________________
Address_________________________

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.
             
             
             
             
             

 

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:

    1. 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.  

    2. 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.

    3. 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.

    4. 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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