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

Textiles | On 18th Aug 2017

Turkey imposes temporary duty on POY from 7 countries

Turkish ministry of economy has announced imposition of provisional...

Textiles | On 18th Aug 2017

GST return filing deadline for transitional credit

For businesses who want to avail the transitional input tax credit...

Apparel/Garments | On 18th Aug 2017

AEPC wants clarity on minimum wages for garment sector

The Apparel Export Promotion Council (AEPC) has urged the Indian...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Mark Paterson
Technical Absorbents Ltd

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Mike Hoffman
Gildan Activewear SRL

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

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

August 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


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