Gujarat, one of the major cotton-producing states, is facing a shortfall in the crop’s supply due to the Centre’s sudden decision to scrap R500 and R1,000 notes in a crackdown on black money in the country. From arrivals of 35,000 bales of cotton in Gujarat since Diwali, arrivals of the cash crop dropped to 15,000 bales on Thursday. Talking to FE, Indore-based cotton trader Girish Kabra said, “There are some transaction issues occurring in cotton trading since yesterday (Wednesday). Ginners can only pay in cheques, but farmers are not interested in payment through cheques. Even yesterday, 30,000 bales of cotton arrived in Gujarat, but there was no auction. Most of the farmers returned home carrying the cotton they had brought. About 20% of farmers alone are open to payment through cheques. The only arrivals today in Gujarat are those where traders are directly supplying the cotton to the ginners’ factories.”

http://www.financialexpress.com/markets/commodities/note-ban-leads-to-shortfall-in-cotton-supply-in-gujarat/443312/

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