Cotton ginners hope to reap profits as prices ruling high

By: |
August 28, 2021 7:48 AM

The Centre has fixed an MSP for medium staple cotton at  Rs 5,716 per quintal for the 2021-22 season, higher than the previous year’s Rs 5,515

cotton ginners, cotton production, cotton MSP, Maharashtra Cotton Ginners Association, Bhatinda Cotton Factory Association, Export of cottonIndia has exported around 75 lakh bales in the current season.

Cotton ginners across the country are hopeful of a better season in 2021-22 after a couple of lacklustre years. Maharashtra has around 700 ginning units, of which at least 550 units are currently active. Ahead of the cotton harvest season starting mid-September, raw cotton (kapas) prices are currently ruling high at over  Rs 7,000 per quintal. Also, cottonseed prices are hovering around  Rs 4,500- 5,000 per quintal.

The Centre has fixed an MSP for medium staple cotton at  Rs 5,716 per quintal for the 2021-22 season, higher than the previous year’s Rs 5,515. For the long-staple cotton, the MSP for 2021-22 has been fixed at  Rs 6,025 per quintal, against Rs 5,825 in the previous year.

BS Rajpal, president, Maharashtra Cotton Ginners Association, and director of Manjit Cotton, said cotton prices have been increasing as consumption by mills is strong and there is good demand for yarn. “Export of cotton is also strong. India has exported around 75 lakh bales in the current season. Moreover, there has been a decline in the area under cotton. All these factors have been pushing up prices. Ginners could not do much business because of CCI intervention. But the season ahead promises to be much better,” he said.

Pradeep Jain, president, Khandesh Ginners/Press Association, shared the same sentiment. The season ahead looks good and we hope for better business, he said.

Kailash Garg, past president, Bhatinda Cotton Factory Association, said Punjab had produced 8.10 lakh bales last year, and in the current year, the cotton sowing has increased by 50,000 hectares. This could result in the production of 12 lakh bales in the coming season. Haryana has seen a decline in the area by 50,000 hectares and Rajasthan has also seen a reduction of 1 lakh hectares.

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