Cotton price crash hits ginners

The recent fall in cotton prices has taken its toll on ginners who convert cotton into bales form by ginning and pressing. Around 50 per cent of ginners in Gujarat, the largest producer and exporter of cotton, have closed their units in wake of spiralling prices. Most of the ginners had stock cotton in anticipation of further rise in prices.

Cotton prices were at Rs 63,000 a candy two months ago and have now crashed nearly 30 per cent to Rs 43,000 a candy in Mumbai. Cotton was among the best performing assets in 2010 with over 60 per cent returns.