India’s textile industry is going through a difficult period, the textile industry’s difficulties will have a significant impact on cotton. Gujarat is India’s second largest cotton producing state, the main cotton enterprises are also facing many difficulties. The lower reaches of the market demand, the state cotton processing enterprises had to reduce production.

The Cotton State Processors Association (SGA) president of the Bharat Wala said, in the southern Indian state of Gujarat cotton is the main consumption areas, in particular, Shankar-6 cotton. However, due to power outages, the southern part of the factory operating rate is only 50%, leading to further reduce the demand for cotton. Association Director-General, Mr. Saurin Parikh said that the cotton last year, the minimum support price (MSP) to Rs 406 / 20 kg. However, in order to help the farmers, this year the minimum support price of 40% to 575 rupees / 20 kg.

Experts said that in such a difficult time, such a high price for the enterprise is adding fuel to the fire. As the cotton processors to take the absence of food overnight, therefore, has not yet seen purchasing large quantities. Parikh said, compared with last year, this year the situation is very bad. Cotton processors are facing huge losses. India’s textile industry as a whole the situation is very tragic. Exports have been hit hard. As a result, in the near future, the association with the Government to discuss the issue. Association asked the Government to reduce the minimum support price of cotton, or cotton processors to provide subsidies.

He said that the results from the dialogue, to ensure that the Government, although not to lower the minimum support price of cotton, but the government will increase cotton subsidies provided by Commerce and Industry. Cotton processors are expected in the next 10-15 days to accept subsidies.