Around 70 per cent ginning units of the region have shut operations due to lack of availability of raw cotton in spot markets as farmers cleared most of their stocks in the early harvesting season.
A drop in spot supplies and rise in demand from textile mills has pushed raw cotton prices to Rs 6,500-7,000 per quintal as against Rs 5,700 per quintal in January, according to traders and ginners.
Manjeet Singh Chawla, president, MP Cotton Ginners Association said, “Just about 25-30 per cent ginning units are operational while others have shut production due to shortage of raw materials. Availability at ginning units is met through supplies from stockists and Cotton Corporation of India.”
Daily cotton supplies in the markets of Madhya Pradesh have dropped to around 20,000 quintal as against 1 lakh quintal in October and November.
