Millers, ginners concerned over raw material shortage in coming days

September 14, 2023

Category: FIBRES

Country: India

Region: Asia Pacific

National Cooperative Agricultural Marketing Federation (NAFED) is the biggest stockist of chana with around 27 lakh tonne of the procured chana with them. “Most traders and millers are procuring from NAFED,” said a trader from Akola.

By Parthasarathi Biswas
Updated: September 12, 2023 04:14 IST

Pune: Cotton ginners and dal millers across the country have kept a cautious watch on rainfall which will determine the prices of the raw material in the days to come. Most processors have complained of low availability of raw materials which has affected their businesses and operations.

Estimates of Cotton Association of India (CAI) released on August 12, talked about 25 lakh bales (1 bale- 170 kgs of ginned pressed cotton) of cotton being in stock with stockists, traders and others. Around 28 lakh bales are with mills. This low availability, many millers say, has resulted in around 5-10 per cent of the gin and press owners operating with bare minimal capacity.

A press gin owner from Maharashtra’s Beed district said some farmers are yet to dispose of their stock in hope of better prices. “The 2022-23 season had started with kapas (raw seed cotton) commanding prices of around 8,500 per quintal. However, since then there has been sharp correction in prices which led to many farmers halting their sales. Farmers who are holding on to their stock, are hoping for another price rise in the new season,” he pointed out.

At present the price of kapas in Jalgaon and other places in North Maharashtra is around Rs 7,100-7,500 per quintal. Asked about the condition of the crop, Pradeep Kumar Jain, founding president of the Khandesh Cotton Gin/ Press Owners and Traders Association, said the recent bout of rains has ensured that the crop is in good condition in many places. “The best news is that there are no reports of heavy pest infestation from any part of the country,”he said.

If lack of kapas has put a question mark on operations, dal millers have also complained of a similar condition. Nitin Kalantari, a dal miller and trader operating out of the Latur district, said that availability of pulses like tur has become a concern. “The arrival of the African tur will ease the situation a bit,” he said. Chana, which was trading well below its minimum support price (MSP) of Rs 5,230/ quintal has crossed the Rs 6,000/ quintal mark. Chana prices corrected, as a possible output drop was expected in tur and other kharif crops.