800 Gujarat ginning factories facing acute shortage of cotton

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New Delhi | Published: April 20, 2019 1:39:43 AM

Industry sources believe that exports of cotton from India would be 40-45% lower compared to previous year.

cotton, cotton crop, agriculture sector, agriculture industryGujarat and Maharashtra are the major grower of cotton crop in India.

Nearly 800-odd ginning and pressing units in Gujarat are facing acute shortage of cotton. As a result, most of them are working at 25-30% capacity.

Cotton crop would be at least 50 lakh bales (170 kg/bale) lower than the previous year, says Saurin Parikh, president of the All-Gujarat Spinners Association, adding that the shortfall in crop affected price of cotton also as in the current month prices of cotton crossed Rs 46,000 per candy (355.5 kg) from Rs 42,500.

Parikh, who is also treasurer of Gujarat Chamber of Commerce and Industry (GCCI), says that total arrival of cotton across the country is estimated at around 330-340 lakh bales this year. Already, 300 lakh bales have arrived, he said, adding that it means in the coming days, Gujarat based ginning mills would work at even lesser capacities.

According to him, of the total 800 plus ginning mills in Gujarat, nearly 200 are completely closed and others are working on and average 25% capacity. “One can’t blame on government or farmers for lower yield of the commodity. Inadequate rains in most of the cotton growing state affected the crop adversely,” he stated.

“Compared to previous year, cotton crop has declined by 45-50%. Last year, arrival of cotton in various market yards was nearly 1 crore bales. But this year we are expecting hardly 50-55 lakh bales,” says Anand Nakum, standing committee member of Rajkot based Saurashtra Ginners Association.

Gujarat and Maharashtra are the major grower of cotton crop in India. Cascading effect of reduced cotton yield and higher prices would be on exports of the commodity also. In the international market, buyers are preferring to purchase cotton from Brazil and other countries due to relatively cheaper prices.

Industry sources believe that exports of cotton from India would be 40-45% lower compared to previous year. Last year, cotton export was around 70 lakh bales.

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