You are here: Home » Markets » Commodities » Other Commodities
Business Standard

Lower cotton crop forces Gujarat ginners to rely on other states

Currently almost 50% cotton has come from Maharashtra, AP and other cotton producing states

Vimukt Dave  |  Rajkot 

With the current year cotton crop estimated to lower than projected, Gujarat-based ginning mills have been forced to rely on other state for their raw material. Currently, out of total cotton arrivals for ginning, almost 50 per cent cotton has come from Maharashtra, Andhra Pradesh and other cotton producing states.

"Every year only 20-25 per cent of cotton comes from other state to Gujarat for ginning as we have large number of processing units. But this year situation is different as our crop size has been reduced and most of the ginning mills are forced to source more than 50 per cent of from other states," said Anand Popat, secretary of Saurashtra Ginners Association (SGA).

According to Popat, farmers mainly from Saurashtra area have also restrained from selling cotton as they continue to seek higher prices. On the other hand, prices in other states have been low due to higher crop.

On an average, about 40,000 bales cotton arrives every day in Gujarat. Out of this, around 20,000-22,000 bales of cotton have been arriving this year from Maharashtra, Andhra Pradesh and Rajasthan as against around 8,000 bales last year. Price of cotton is ruling at Rs 850-900 per 20 kg here.

Arunbhai Dalal, an Ahmedabad-based trader and exporter, said, "Right now Gujarat farmers are not selling their cotton enough as they had seen Rs 951-1000 per 20 kg last year. Once prices will reach to this level, farmers will increase their cotton selling. But for now it is fact that we are very much depending on Maharashtra and Andhra."


According to Dalal, so far around 1.8-1.9 million bales of cotton has arrived in Gujarat, of which 700,000-800,000 bales of cotton came from other states.

During this week, cotton price has increased on some good demand from mills. According to market sources demand will increase further as export demand in yarn is higher.

Cotton production in Gujarat is likely to be around 7 to 7.5 million bales in 2012-13 as against 12 million bales last year. Out of this, Saurashtra’s cotton production may not cross 3-3.5 million bales this year which is almost 50 percent less as compared to last year.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, December 22 2012. 19:02 IST
RECOMMENDED FOR YOU
.