TNN | Mar 21, 2021,
INDORE: Around 70 per cent ginning units of the region have shut operations due to lack of availability of raw cotton in spot markets as farmers cleared most of their stocks in early harvesting season. A drop in spot supplies and pickup in demand from textile mills has pushed raw cotton prices to Rs 6,500-7,000 per quintal as against Rs 5,700 per quintal in January, according to traders and ginners.
Manjeet Singh Chawla, president, MP Cotton Ginners Association said, “Just about 25-30 per cent ginning units are operational while others have shut production due to shortage of raw materials. Availability at ginning units is met through supplies from stockiests and Cotton Corporation of India.” Daily cotton supplies in the markets of Madhya Pradesh have dropped to around 20,000 quintal as against 1 lakh quintal in October and November.
According to the Association of India cotton output in Madhya Pradesh is seen going up by around 17 per cent to 21 lakh bales (each of 170 kg), though the country’s production is pegged down 4 lakh bales at 356 lakh bales as against the past year. There are around 175 ginning units in Madhya Pradesh of which around 125 units are located in the leading cotton cultivating belt stretching from Burbhanpur to Dhar.
The association for ginners has urged the government to develop clusters for textile in the cotton producing belt and allow all related industries in the cluster including ginning units to complete the supply chain from cotton to fiber. Chawla said, “Many tax exemptions given to ginning units in the VAT regime have been discontinued and tax liabilities have also gone up in the new tax regime. The government should extend tax benefits to the sector to help survive the hardships.”
(Source: timesofindia.indiatimes.com)