60% cotton seed crushing units closed in Gujarat – weather, sluggish demand to blame

By: |
February 19, 2020 3:45 AM

Due to extended rains in the state, new arrival of cotton bear as high as 20% of moisture, he said, adding that hence the cotton seed crushing units are required to dry the crop ahead of crushing process.

Last year, there were complaints regarding adulteration in cotton cake and hence people started buying groundnut cake despite availability of cotton cake in the market, opines Sejpal.Last year, there were complaints regarding adulteration in cotton cake and hence people started buying groundnut cake despite availability of cotton cake in the market, opines Sejpal.

Due to heavy moisture and sluggish demand of cotton cake, nearly 60% cotton seed crushing units are closed since November last week in Gujarat.

Of 1,000 cotton seed crushing units, nearly 400 mills are currently functional in the state as it is unviable to crush cotton seed in absence of cotton cake demand, said Avdhesh Sejpal, president of Saurashtra Cotton, Cotton Seed and Cotton Cake Brokers’ Association, adding, “In case of cotton seed crushing, millers get maximum 11% of oil, 80-85% cake and nearly 5-7% waste. Generally, cotton cake is purchased for cattle feed. As large quantity of groundnut cake is available this year, following bumper groundnut crop in the state, those who are in animal husbandry are preferring groundnut cake over cotton cake.”

Last year, there were complaints regarding adulteration in cotton cake and hence people started buying groundnut cake despite availability of cotton cake in the market, opines Sejpal.

Due to extended rains in the state, new arrival of cotton bear as high as 20% of moisture, he said, adding that hence the cotton seed crushing units are required to dry the crop ahead of crushing process.

“In the beginning of the season, prices of cotton seed soared unnaturally due to speculative activities in the commodity. Every year local cotton seed oil mills purchase large quantity of cotton from farmers in Maharashtra, Karnataka, Telangana and Andhra Pradesh. But this year, Cotton Corporation of India (CCI) has purchased from them at higher MSP which resulted into dearth of availability of quality raw material,” he said.

Sejpal, however, says that by April end most of the closed cotton seed oil mills will reopen as local crop would dry down by the time and CII too will start selling in open market. Moreover, groundnut cake and other fodder for cattle will be consumed and again cotton cake would be in demand.

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