Madhya Pradesh Cotton Ginning Operations Reduced Due to Falling Supply
2024-04-24 12:39:01
Madhya Pradesh Ginning Units Cut Operations Amid Declining Cotton Supply
The ginning units in Madhya Pradesh are currently operating only 2 to 3 days a week, as the cotton arrivals have dwindled toward the end of the season. This reduction in operational days and capacity, with ginning units working at just 5-10 percent, is indicative of the seasonal winding down in the cotton industry. Despite this slowdown, there is a steady demand from textile mills, which are predominantly utilizing their existing stocks.
Kailash Agrawal, a local cotton farmer and owner of ginning units, noted that the ginning industry is likely to cease operations by mid-May due to the sharp decline in cotton availability. This scenario underscores the cyclical nature of the cotton industry, which sees a peak harvest period from October to December, with market activities tapering off by April or May.
Madhya Pradesh is a significant player in the cotton, technical textiles, and garments sector, marking substantial contributions to the state's exports. The fiscal year 2022-23 saw technical textiles and garments exporting worth Rs 4,052 crore, and cotton exports reached Rs 4,397 crore. The Cotton Corporation of India (CCI), a critical agency under the Ministry of Textiles, has been actively involved in the trade and procurement of cotton, having acquired around 6.35 lakh quintals of cotton from the state markets this season.
The current market price for cotton in Khargone, a key trading hub in Madhya Pradesh, stands at Rs 6,700 per quintal. This pricing, alongside the trading and procurement activities by entities like the CCI, plays a crucial role in shaping the economic landscape of the region, particularly for those involved in the cotton supply chain. As the season concludes, stakeholders in the cotton industry are adjusting their operations in response to the market and environmental conditions, anticipating the next harvest cycle.
