The Hindu : Andhra Pradesh News : Cotton trade set to cross Rs. 10,000 crore

Online edition of India's National Newspaper
Saturday, Apr 02, 2011
ePaper | Mobile/PDA Version

Andhra Pradesh

Andhra Pradesh

Cotton trade set to cross Rs. 10,000 crore

S. Harpal Singh

Adilabad tipped to become the largest processing centre in the world

Cotton processing industry in Adilabad has its roots in the country's freedom struggle
The factories symbolised Gandhiji's dream of creating employment for local people

— PHOTO: G. RAJESHWARA CHARY

Fruits of labour: Labourers working on an old hydraulic bale pressing machine in a factory in Adilabad.

ADILABAD: Cotton trade in Adilabad is set to cross a record turnover of Rs. 10,000 crore this season which qualifies it as the largest processing centre in the world, according to insiders. This marks a giant leap for the local cotton processing industry which has its roots in the country's freedom struggle.

The first ginning and pressing mill in this cotton-rich area was established in 1935 by Pola Sambanna, a well-known local businessman, following Gandhiji's call to manufacture cloth indigenously. The second venture to open was called Babaji ki Gin which was followed by another unit to be set up by none other than industrialist Jamnalal Bajaj, an important associate of Gandhiji during the independence movement.

“The three steam operated presses had cumulatively produced only about 200 bales during a season. Yet, these factories symbolised Gandhiji's dream of creating employment for locals,” observes Bajranglal Agarwal of the Mamata Ginning and Pressing factory and advisor of Adilabad Agro Industries Association, as he traces the history of local cotton trade.

“The nearly 80 ginning and pressing mills located within a 4 km radius of Rampur industrial area now produce about 18 lakh bales in a season (spanning between November and April) which is considered to be the highest for any individual cotton centre in the world. As the average price of a cotton bale is over Rs. 55,000 this season, it resulted in a phenomenal increase in turnover,” he says about the current market trends. Cotton processing in Adilabad received a great thrust in 1971 when the Maharashtra government centralised its purchase through the Maharashtra State Cooperative Cotton Growers Marketing Federation Ltd. As better price was offered in the open market in Adilabad, most of the crop from the bordering areas of that State was sold here which necessitated expansion of the capacity to process the cotton.

In 1998, the industry faced a crisis as Maharashtra decentralised cotton purchase. “The industry however, rode over the crisis because of the simultaneous and huge increase in cultivation of cotton locally,” says a leading cotton processor.

Printer friendly page
Send this article to Friends by E-Mail

Andhra Pradesh