Ginning units likely to extend processing till June-end

Indore: A rise in daily supplies of raw cotton in the market and improved quality of the produce have increased the availability of raw material to ginning units of Madhya Pradesh. It is likely to extend the processing by around a month. December to mid of April is the peak period when spinning and ginning industries procure raw cotton from the market and produce yarn for the textile and garment units. But this season spinning units are likely to continue processing until the end of June.Daily arrivals of cotton in Khargone market, a leading spot market for cotton in Madhya Pradesh, have jumped to around 24,000 quintal per day much higher than the peak arrival season December-January when supplies were just around 5000 a quintal per day, according to traders.An owner of ginning units Kailash Agrawal said, “Initially the supplies of cotton were low and we were not able to get sufficient raw material. But now cotton arrivals have increased in the market across India and this has helped in increasing availability of raw cotton to ginning units.”There are close to 200 ginning units in Madhya Pradesh of which close to 100 operate from Nimar region.Supplies of cotton in the spot markets are expected to remain firm in the coming weeks as farmers, who had held the crop in anticipation of higher prices, have started releasing the supplies, said industry players. Despite a drop in output, cotton supplies have jumped across markets in the country. Khandwa, Khargone and Barwani are leading cotton cultivating regions of the state. Cotton Association of India and Madhyanchal Cotton Ginners & Traders Association members from MP have estimated cotton production in MP at 19 lakh bales in the season 2022-2023, down by one lakh bales from the last season.