Saurashtra ginning units set for revival

With cotton cultivation booming across Saurashtra, the defunct ginning units of the region are gearing up for action. Entrepreneurs are not only putting up additional ginning capacity in the region but are also bringing in state-of-the-art technology.

The turnover of the ginning business in India is around Rs 25,000 crore per annum, to which Gujarat contributes Rs 10,000 crore.

"There are presently 850 ginning units functioning in the state, but with cotton cultivation growing, there are an additional 100 ginning units are coming up across the state and Saurashtra Region," said Dilip Patel, president, All Gujarat Cotton Ginning Association (AGCGA).

Out of total production from ginning units located across the state 60 per cent goes to southern markets, two to five per cent to northern markets.

The rest, 35 - 38 per cent, is exported - mainly to China, Thailand, Pakistan and Bangladesh. Presently, the trade provides employment to 15 lakh people directly or indirectly, of which Saurashtra contributes almost 50 per cent, said Patel.

Usually ginning units follow the norms of cotton processing as stipulated by Cotton Corporation of India (CCI) and follow two types of manufacturing process - water

based and steam based. But with the demand for Gujarat cotton increasing in markets abroad, state-of-the-art technology is being introduced increasingly, making it one of the most hi-tech industries in the region.

"Maintaining moisture standards as stipulated by CCI means little or no human interface, making cotton ginning a hi-tech activity," said Kirit Ghelani, a ginning machinery dealer.

Industry sources say with increasing demand for Gujarat cotton across the world, one major challenge the ginning industry in the region faces is the lack of international trade exposure. As a result, very few ginning units directly export their yarn.

"Ginning units are by and large a part of the agro-industry and are mainly set up by people who have roots farming. A majority of owners lack expertise in dealing with the international markets. This has limited them to trade more in domestic markets. Presently out of 2,000 members registered with AGCGA, hardly 3 or 4 are involved in direct exports, rest of them deal with brokers, merchants and traders," pointed out Rajesh Kanani, an export consultant in Rajkot.

The cotton boom has also attracted few edible oil unit owners to set up ginning units. "By products of the cotton crop - the cotton seeds can be utilised for manufacturing edible cottonseed oil. Crushed cottonseeds used as cattle-feed can also be sold, so a majority of edible oil unit owners have now entered the ginning business," said Dinesh Shelani, owner Raghuvanshi Industries, one of the largest ginning units in Saurashtra.