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Lower cotton MSP or grant subsidy to ginners, demands GGA

13
Nov '08

Textile industry of India is going through a rough patch, in turn affecting the cotton sector greatly. Gujarat is the second-largest producer of cotton in the country, and leading players here too are facing problems.

With low demand from down stream market, the cotton manufacturers in the State have cut down production.

Mr Bharat Wala, President, Saurashtra Ginners Association (SGA), explained to Fibre2fashion, “South India is one of the key consumers for Gujarat cotton, especially the Shankar-6 variety. However, factories in this region are working at 50 percent capacity due to power-cuts and related issues. This has further supported lower demand.”

Mr Saurin Parikh, General Secretary, Gujarat Ginners Association (GGA), informed, “Last year minimum support price (MSP) for was Rs406 per 20 kg. But, in an attempt to help farmers the Government raised it by 40 percent this year to Rs575 per 20 kg.”

Experts say that in these tough times, these high rates are adding fuel to the fire. Big purchases are not being made as ginners are adopting the hand-to-mouth attitude.

Mr Parikh says, “Compare to last year, this year the situations very bad. Ginners are facing high losses. Textile industry, across India, is in miserable position. Exports are also suffering. Thus, we recently, met with Mr Sharad Pawar and Hon. Shankar Singh Vaghela to discuss the issue. We requested that the MSP be reduced or ginners be provided with some subsidy.”

As for the outcome of talks, he said, “Mr Vagela assured us that though MSP will not be reduced, Government will provide ginners with subsidy. We are hoping that ginners will start receiving subsidy within next 10-15 days.”

Fibre2fashion, News Desk - India

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