Indore: Ginning units across Madhya Pradesh have shut operations nearly a month ahead of the usual season-end, as a sharp drop in arrivals of cotton in spot markets has brought processing activity to a halt.
Ginning units, which process raw cotton by separating fibre from seeds, form a key link in the textile value chain and cater primarily to spinning mills and textile manufacturers. These units typically operate till the first week of May, handling arrivals that peak between November and December and continue till April.
This year, however, the season has ended early. Kailash Agrawal, a cotton farmer and ginning unit owner from Khargone, said: "Ginning units have now completely shut operations because there is no supply. Usually units continue till May, but this year we had to close earlier due to lack of arrivals."
Industry players said arrivals tapered off faster than usual in the latter part of the season, leaving little raw material for processing units. The central government has fixed the Minimum Support Price (MSP) for the 2025-26 season at Rs 7,710 per quintal for medium staple cotton and Rs 8,110 per quintal for long staple cotton.
Impact on Madhya Pradesh's cotton industry
Madhya Pradesh has around 200 ginning units, with nearly half concentrated in the Nimar region, a major cotton-producing belt. With raw material supply drying up sooner than expected, most units have remained idle over the past few weeks.
Operators said the early shutdown has impacted seasonal employment and processing volumes, while also limiting supply to spinning mills in the final leg of the season. Industry participants said the trend reflects shifting arrival patterns in the market this year.
The early closure of ginning units is expected to affect the supply chain for textile manufacturers, potentially leading to higher prices for cotton products in the coming months.
