1. DEFINITION AND INTERPRETATION:

 

Effective Date: The date on which the said agreement is accepted online by the farmer during his registration on the website.

 

Kappas: Farmer produce or seed cotton

 

Trade day: The day on which the actual trade transaction occurs between seller and buyer. The trading date including time is specified in our TTN number.

 

Farmer: Actual producer of cotton or who is registered in our website as Farmer with all the required details.

 

Ginner: Ginner is a person or group of persons having TMC standard Ginning mill by own/ lease/ hiring basis and is able to produce good quality lint bales as per international standards by procuring good quality raw material with quality conscious in each and every stage of Ginning process and deliver the goods as per agreed time.

 

Spinner: Spinner is a person or group of persons having standard Spinning mill by own/ lease /hiring basis and is able to produce good quality yarn as per international standards by procuring good quality raw material with quality conscious in each and every stage of Spinning process and deliver the goods as per agreed time.

 

Cotton Bale Importers: Cotton Lint Bale Importers [CBI] is a person or group of persons having standard Spinning mill/ Trading House by own/ lease /hiring basis and is able to produce good quality yarn as per international standards or trading the cotton Lint bales in their own country by procuring good quality cotton Lint Bales from India with quality conscious. https://youtu.be/PMLyTKQc21Y

 

Cotton yarn Importers: Cotton Yarn Importers [CYI] is a person or group of persons having standard Weaving mill/ Trading House by own/ lease /hiring basis and is able to produce good quality fabric as per international standards or trading the cotton yarn in their own country by procuring good quality cotton yarn from India with quality conscious.

 

Cotton waste importers: Cotton Waste Importers [CWI] is a person or group of persons having standard Spinning mill/ waste Trading House by own/ lease /hiring basis and is able to produce good quality yarn as per international standards or trading the cotton waste bales in their own country by procuring good quality waste cotton bales from India with quality conscious.

 

 

TReDS: TReDS means Trade Receivables electronically Discounting System. It is an electronic platform for facilitating the financing / discounting the trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. These receivables can be due from corporate’s and other buyers, including Government Departments and Public Sector Undertakings (PSUs).

 

FOS Option Lint Bales: Farmer Option Sale is part of Normal market Option sale system. It is also called as SOS (Seller Option Sale). Here on every Monday, Wednesday and Friday [popularly known as MWF days] the farmer puts up his quote/ price and the buyer shall accept the said price if he wants to buy the stock on that particular day. Here, the seller can change his quote any time of that day and the buyer shall agree to the said quote.

 

SOS Option Lint Bales/Cotton Yarn/Cotton waste: Seller Option Sale is part of Normal market Option sale system. Here every Monday, Wednesday and Friday [popularly known as MWF days] the farmer shall put forth his quote/ price and the buyer shall accept the said price if he wants to buy the stock on that particular day. Here, the seller can change his quote any time of that day and the buyer shall agree to the said quote.

 

BOS Option Lint Bales/Cotton yarn/Cotton waste: Buyer Option Sale is part of Normal market Option sale system. Here on every Tuesday, Thursday and Saturday [popularly known as TTS days] the buyer shall put forth his quote and the seller shall agree to sell the stock for the quoted price if he wants his stock to be sold on that day. Here, buyer can change his quote any time of that day and the seller shall agree to the said quote.

 

 

2. THE CBI CONCEPT:

The Cotton lint bale importer shall provide Bank Guarantee or irrevocable revolving confirmed Letter of credit by any multinational bank as per approved list of ICSINDIA. Following bank guarantee or letter of credit, the CBI can purchase cotton lint bales equivalent to 80% of such bank guarantee or letter of credit, from Trade Terminals 1 to 4. The same shall be shipped to the CBI by farmers, ginners or traders through ICSINDIA.

           

3. SCOPE & CONDUCT OF WORK:

 

            ICSINDIA shall display the cotton bales available on daily basis as per their basic sale options as specified hereunder:

1. MSP sales
2. Normal sales.

In addition to the above, ICSINDIA shall also update HVI report on completion of ginning process.

 

            As per the data provided by ICSINDIA, the CBI shall choose any of the options within stipulated time through the trade password allotted to them and confirm the deal online. CBI can see the quality report of each lot in the website of ICSINDIA and confirm the quantity based on their cash flow.

 

            Following the confirmation of online purchase by CBI in Trade Terminals, ICSINDIA shall send the Trade Transaction Number to the buyer and seller through SMS or mails to their registered mobile numbers or mail ids respectively. As per the details received, the Ginner shall dispatch the goods to CBI and the CBI shall enter the goods receipt information in the website.

 

            CBI shall understand the concept of farmers, ginners and spinners. Each farmer or RMG, SHG, JLG or FPO will mandatorily bring their crop of 475 to 525  quintals + 2% quantity to produce 170 quintals of  lint or 100 bales of cotton bales [each 170 kgs] a lot which is famous system for selling and suitable for transportation  through truck.

 

            In case of purchase from the farmers, invoice shall be raised by ICSINDIA and in case of Ginners/ Spinners, invoice shall be raised by the ginner or spinner.

           

4. ICSINDIA AGREES TO:

1. Ensure smooth and continuous supply of lint bales to/ from the cotton lint bale importers.

 

1. Ensure the quality of the cotton lint bales

 

1. Include a provision for quality complaints, if any, through CBI Interrogation Program in their website.

 

1. Ensure timely payout of farmers, ginners and traders as per the track of the crop or CBI Interrogation Program.

 

1. Update cotton lint bales [28.5mm] rate in Rs/candy and cotton seed rate in Rs/quintal daily before 11.00AM.

 

1. Ensure that the standard values of Moisture, trash, length, strength, Mic, Rd, CG, +b will be available on their website.

 

1. Provide the most reliable, reasonable sources and payment options to all the cotton lint bale importers.

 

 

 

5. THE COTTON LINT BALE IMPORTER AGREES TO:

 

1. Register in the website of ICSINDIA, i.e., www.indiancottonsolutions.com or www.icsindia.com.

 

1. Provide 20% margin money or Rs.5,00,000/- per 100 bales, whichever is higher.

 

1. Purchase either in Seller Option Sale or Buyer Option Sale where they quote their own price as per the option available.

 

1. Obey the compensation as per admin decisions if any default, or quality claims.

 

1.  Obey the compensation as per admin decisions if any default, delay in delivery, or quality claims from their suppliers.

 

1. Obey the compensation as per admin decisions if any quality claims from their customers and if any default or delay in payments.

 

 

6. PAYMENT TERMS:

 

ICSINDIA is the provider/ consignee of farmer crop, cotton bales and cotton seeds of ginners or traders. Only nominal charges of Rs.1/- per kg shall be charged by ICSINDIA as service charges and the GST on the cotton lint bales or cotton seed purchased will be over and above the price of such purchase.

 

CBI can purchase cotton lint bales with Bank Guarantee limit or can pay 25% margin money in US dollars to the bank account of ICSINDIA and participate in online purchase. The balance 75% shall be paid by CBI after receiving the goods.

 

7. PENALTIES:

 

In case of any default in payment from the end of CBI, the margin money deposited by him shall be adjusted against the default and the deal shall stand as cancelled. The same shall be informed to the cotton lint bale importer through SMS/ mail.

 

8. DISPUTES:

If any dispute arises in case of delivery/ quality of goods the ICSINDIA Admin shall resolve as per the merits and demerits of the situation, admin decision is final decision.