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Gujarat ginners upbeat over cotton production this season
28
Oct '11
Ginners in the western State of Gujarat are upbeat over cotton production this season due to increase in sowing of the crop and good rains in the State.

Area under cotton has increased to 2.96 million hectares in Gujarat this season, compared to 2.63 million hectares last season, according to the statistics of the State agriculture department.

Briefing to Fibre2fashion about cotton production, Mr. Dilip Patel, President of All Gujarat Cotton Ginners Association (AGCGA) said, “The cotton crop in Gujarat this year will be close to around 12 million bales as against 10 millions bales last year. The increase in cotton production this year is on account of good rains, more amount of sowing and hence more yield.”

“Countrywide production of cotton, too, is expected to increase this year to around 36 million bales from last year's 32.5 million bales,” Mr. Patel added.

About the prices of cotton, he said, “The market condition will be unlike last year when the prices had gone up to Rs. 62,500 a candy (1 candy = 356 kg). According to our estimates, this year the rates will not exceed Rs. 40,000 per candy because overall world market is very weak. Around 15,000-20,000 less factories are operational this year, garment production is also less, and hence price hike like last year is unlikely.”

The AGCGA President, however, said the ginners will benefit as the overall production of cotton is good this year. “Last year, the problems that occurred were due to forward trading and there were more fluctuations in the market. This year, no forward trading is done so people will only be trading as per the present conditions. So, overall the market will be beneficial for ginners as well,” he added.

Fibre2fashion News Desk - India


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