Nearly 50 per cent of the ginning units in the Nimar region of Madhya Pradesh have been forced to shut operations due to a shortage of raw cotton and a lack of parity in the market.
According to industry players, most ginning and spinning units have cut down processing by nearly 50 per cent and many more have shut their operations completely as a result of poor availability of raw materials.
Madhya Pradesh has close to 200 ginning units of which nearly 100 operate from the Nimar region.
Madhya Pradesh Association of Cotton Processors and Traders president Kailash Agrawal said, “Almost 50 per cent ginning units are out of work completely this season because raw cotton is not available to them. While those operating are getting just 30-40 per cent raw cotton against their full capacity.”
Daily arrivals of cotton in the spot market at Khargone has been reduced to 5,000 quintal to 6,000 quintal as against 20,000 quintal in the corresponding period last season, according to industry players, who also added that farmers have held back supplies in anticipation of a rise in the prices of cotton.
The leading cotton-cultivating regions of the state are Khandwa, Khargone and Barwani. Industry player say that supplies of yarn to the garment industry have taken a hit due to the decline in operations and processing capacity of the ginning and spinning units.
An owner of a ginning unit said, “There is not much stock left with ginning units this season because prices were high and availability was poor. I have cut down my operations to 60 per cent this season.”
