Saurashtra oil,ginning mills battle for survival

On the other hand,groundnut prices are expected to touch new records. Cotton prices will also be affected nationwide since Gujarat alone accounts for over 40 per cent of cotton produce in India.

Due to the impending acute shortage of kernels,oil mills are staring at one of their worst crises in the months ahead. On the other hand,the ginning industry,which has seen remarkable growth in the last decade following popularity of Bt Cotton,is faced with its first scarcity phase.

“Two months hence,all 500-odd oil mills might have to complete shut down,” said Saurashtra Oil Millers Association and Rajkot Chamber of Commerce Industry president Samir Shah. “Instead of the regular 16 lakh tonnes of groundnut kernel,we are just looking at 2 to 3 lakh tonnes of produce,” he added.

Whatever little kernel is available will be required as seeds for the next season and for raw export,leaving hardly anything for oil mills.

The groundnut oil,the most preferred edible oil in Gujarat has,in already selling at Rs 1500 per 15 kg following a record rise in prices over the last two years. Millers are not sure where will it go this year.

In Saurashtra-Kutch,which is the hub for ginning mills,more than 700 units will have to depend this time on south Gujarat and Maharashtra for raw material to meet the supply shortage of over 50 lakh bales.

“Instead of 70 lakh bales,production in Saurashtra-Kutch is not expected to cross 20 lakh bales,” said Saurashtra Ginners Association secretary Aanad Popat. “However,production from south Gujarat,where there has been rainfall,is expected to be normal and overall production in the state is likely to hover around 70 lakh bales,instead of 1.2 crore,” he added.

This simply means the ginning mills will start feeling the pinch by the end of December. “And,by February,we will be out of business. Normally,the mills run till May-June,” said Popat.

The first casualty will be more than 40,000 workers directly employed in the ginning industry.

While ruling down a total shutdown,Popat says workers will be left with little work in hand because of steep fall in cotton production.