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Increased cotton supply and increased ginning unit activity


Indore: Despite an anticipated decline in production, a surge in new season cotton supplies has caused the ginning mills in the state to ramp up processing. 


The majority of these operations are now running at 50% or higher capacity.


Because there wasn't much cotton available on the spot market during the previous season, only 20–30% of the ginning units' capacity was used. 


A satisfactory supply situation in the spot market has bolstered operations in the ginning plants, which are anticipated to continue operating at higher capacity in the upcoming months as part of the new season, which begins in October.


In Madhya Pradesh, there are around 200 ginning operations, of which about 100 are based in the Nimar district.


Cotton farmer Kailash Agrawal, who owns ginning plants in Khargone, stated that the state's ginning mills are operating at a comfortable pace due to sufficient new season supply. 


In ginning facilities, the typical capacity utilisation is at least 50%, and this might increase further based on supply flow. 


In Madhya Pradesh, Khargone is one of the biggest spot markets for cotton.

The Cotton Association of India (CAI) predicted that Madhya Pradesh's cotton output will drop to 18 lakh bales (one bale weighs 170 kg) from 19 lakh bales in the previous season in its first estimate of crop production, which was released in a statement in October.

21/11/2023 02:54pm

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