200 new ginning units expected to come up this cotton season

Due to good monsoon and higher output estimated in Gujarat, cotton ginning industry in the state is expecting 200 new units during this cotton season (October to September).

"We expect about 200 new ginning units to start operations in this cotton year. Higher production of cotton attracts investors to cotton ginning units. All these players belong to Gujarat," said Dilip Patel, president of All Gujarat Cotton Ginners Association (AGCGA).

Talking about pressing capacity of ginning industry of Gujarat Patel said that we are already having three times higher pressing capacity than cotton production of Gujarat.

According to industry sources, to set up a ginning unit, and investment of Rs 2.5-3 crore is required. After the new additions this season number of cotton ginning units will be more than 1,300 in the state. At presently Gujarat has nearly 1,100 cotton ginning units.

Bharat Wala, president of Saurashtra Ginners Association (SGA), said, "Saurashtra is the main cotton growing area in the state and several investors have expressed their interest to start ginning units in this area. We are expecting that this year around 125-150 cotton ginning units are likely to come in this area."

According to SGA, there are over 500 ginning units in Saurashtra. Most of them are located in Jasdan, Rajkot, Surendranagar, Halvad, Botad, Dhrangdhra, Amreli, Babara, Padhari and Vakaner areas.

Anand Popat, managing director of Jalaram Cotton and Proteins Limited and secretary of SGA said, "Old players of ginning industry are also considering upgrading their units technically this season."

He said that state government's textile policy is encouraging and players are considering to take benefits under this policy.

Meanwhile, ginners of Gujarat expected to start their units during Navaratri festival but due to heavy rain in the state they may delay ginning by 15-20 day and are likely to start at the end of October.