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G. Chandrashekhar

Mumbai, Nov. 23 Upset over the sharp hike in the minimum support price (MSP) for cotton that has rendered business uncompetitive, ginners across the country have decided to strike work for two days.

According to reports, representatives of seven ginners associations who met at Kadi (near Ahmedabad) on Friday have decided to intensify their protest by striking work nationwide on November 25 and 26.

There are over 4,000 ginning and pressing factories.

Representations have already been made to the Government, seeking review of the MSP.

Trade bodies, such as Cotton Association of India, have repeatedly urged New Delhi for reconsideration.

A sharp decline in international cotton prices in recent weeks has considerably slowed export demand for Indian cotton.

In the last two years, India emerged as a major cotton supplier to overseas markets, including China.

Rising exports brought remunerative prices to growers, who responded this season with yet another bumper crop.

In 2008-09, cotton output is estimated in excess of 300 lakh bales.

But traders complain domestic prices are out of sync with depressed conditions in the international market.

Export enquiries and orders are reported to be few and far between.

A weak rupee is of course a silver lining in this otherwise depressing scenario; but given the fact that overall macroeconomic sentiment is far from encouraging, it seems a crisis of confidence has gripped the sector.

More Stories on : Cotton | Trade & Labour Unions

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