Despite the fact that, Gujarat is one of the biggest producers of cotton in India, ginners of Gujarat are attracted to the neighbouring state of Maharashtra and are planning to set up ginneries in various regions of that state.
According to Mr Bharat Wala, President of Saurashtra Ginning Association, who spoke to fibre2fashion, "there are three reasons why there are better business prospects in Maharashtra.
“The first reason is that the raw material that is available in Maharashtra is cheaper than that available in Gujarat. Secondly, transportation charges to the major cotton consuming centres in South India are relatively less, when compared with those in Gujarat.”
“The third reason is that, cotton acreage has reached a saturation point in Gujarat, while Maharashtra has 3.2 million hectares under cotton cultivation, and if the yield in that state was to increase, Maharashtra could prove to be a better option than Gujarat”, he concluded by saying.
Fibre2fashion News Desk - India