Katherine cotton gin is on track to start commercial ginning at the end of this year

According to WANT Cotton Company director David Connolly, building the cotton gin from the ground up has been a long process and at the moment it is all 'hands to the grindstone' to get it complete.

The gin is owned by a group of Western Australian and Northern Territory cotton growers at the site 34km north of Katherine, which was formerly part of Tarwoo Station.

Mr Connolly said it was a difficult process starting a whole new industry in a new region.

"It has been two years since we started, and we only have been able to work on it in the dry season," he said.

He sad the gin would start receiving an intake of cotton modules from the second week in October and be ready for ginning from December.

"We look like ginning 25,000 bales at this stage this season," he said.

Industry leaders hope it will reduce the distance cotton must be trucked to processors, which costs an extra $100-$200 per bale, plus give producers access to cotton seed for supplementary livestock feed.

Northern Territory Cotton Growers Association president Bruce Connolly said a predicted 10,000 hectares was planted this season.

"The Northern Territory growing season has been somewhat mixed with crops in the northern regions receiving too much rain and not enough sunlight returning a lower yield," he said.

"The southern crops received good rainfall and enjoyed a fantastic growing season.

"With the gin being fully operational, it will give growers more confidence as the cotton industry is now firmly established and we will see cotton being exported from the Port of Darwin."

Mr Connolly said with the current El Nino declaration the Top End would have a later wet season, but the next crop would start being planted from December onwards.