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Saurashtra Ginners' Association strike may engage other states

19 May 2011 Evaluate

To protest the ban on cotton export, Saurashtra Ginners' Association which compromises a body of 980 ginning units - has gone on an indefinite strike. This strike is likely to find support from ginners across Maharashtra, Karnataka and Andhra Pradesh who could also pull down shutters. The commerce ministry has also backed the strike by the ginners on their demand but is likely to help them with the government as carry-forward stocks in the country are well below the stipulated level.

Currently, over 4,000 ginners from the 10 states are now part of the movement. The association is currently planning to meet Union agriculture minister Sharad Pawar, commerce minister Anand Sharma and textile minister Dayanidhi Maran. Ginners claim the textile ministry is also now supporting them. The association is confident that the union government will allow them to export around 15 lakh bales more while they claim the trade is holding up to 45 lakh bales.

After strike, the prices have increased from Rs 42,000 per candy to Rs 45,000 per candy. Two months ago the prices were commanding Rs 63,000 per candy which declined to the current prices ensuring that farmers are not selling cotton. In Gujarat alone farmers are holding 15-17 lakh bales of raw cotton for sale.

The market is quite speculative and ginners and traders have to bear excessive losses after purchasing huge stocks anticipating higher prices. International prices are currently stable and ruling at 145 to 150 cents per pound of MOP cotton for the past one week after touching a high of 225 cents per pound in March. In the past four days, cotton prices have risen to touch Rs 45,000 per candy.

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