Home / Knowledge / News / Textiles / MP cotton industry pushed into a corner
MP cotton industry pushed into a corner
15
Jan '10
Several small-scale units in the state of Madhya Pradesh (MP) have been moving to the neighboring state of Maharashtra since past few years as cotton processors and traders in MP are again facing difficulties due to higher procurement prices, low arrival, high power tariff and irrational taxation.

Last year, there were around 24 units operating in Sendhwa town, which is 300 km from Bhopal. But currently, only 15 units are functioning in the town and running with hardly 25-30 percent production capacity, according to the MP Association of Cotton Processors and Traders.

Overall processing capacity of cotton ginning units in MP is about 20 million quintals but this year, production is expected to be just around 4 million quintals, said an official.

In addition to this, Bt cotton is the another reason, which has put cotton processors and traders of MP in a tight spot, as the arrival period of Bt cotton is shorter than the local variety and now the season does not continue, beyond month of May.

Burhanpur, a historic town in the state, witnessed the shifting of seven cotton processing units to Maharashtra, out of 12 units, this year. Cotton processors urged the state government to free the commodity from entry tax. But, the government refused this demand, which again put processors in a bind as neighboring states levy nil entry tax on cotton.

The margin earned by ginners and traders on a cotton candy supplied to yarn manufacturers is far less than the margin Maharashtrian cotton processors avail. On one cotton candy of 356 kg sold at Rs. 26,000, MP processors generate margin of just Rs. 200, while, Maharashtrian processors are able to reap more than Rs 1,200.


Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Reliance Industries

Textiles | On 24th Apr 2017

Reliance’s FY17 revenue from petrochemicals up 12.2%

Increase in prices across polymers and polyester chain has...

Textiles | On 24th Apr 2017

India, Kazakhstan to increase cooperation in textiles

Indian and Kazakhstan are deliberating upon increasing cooperation in ...

Textiles | On 24th Apr 2017

GST reflects 'One nation, One aspiration' spirit: Modi

Prime Minister Narendra Modi has said that the Goods and Services Tax ...

Interviews View All

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search