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Published by: anilvb04 on Apr 14, 2011
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Cotton in India

Since time immemorial India has been the producer of cotton and the finest and most beautiful cotton fabrics. India thus enjoys the distinction of being the earliest country in the world to domesticate cotton and utilize its fiber for manufacture of fabrics. This affinity has endured through the centuries and today India ranks first in cotton cultivated area and second in production among all cotton producing countries in the world next to China. Cotton is one of the principal crops of the country. It plays a vital role in the country¶s economy providing substantial employment and making significant contributions to export earnings. The ratio of the use of cotton to man-made fiber and made-made continuous filament yarn is 60: 40 for Indian textile industry (based on the financial year 2005-06). It engages around 6 million farmers while another about 40 to 50 million people depends on activities relating to cotton cultivation, cotton trade and its processing for their livelihood. It is the principal raw material for the domestic textile industry. India has brought about a quantitative and qualitative transformation in the production of cotton since her independence. Production and productivity of cotton in India have improved significantly during the past six decades. It increased from 2.79 millions of 170kgs each in 1947 to an estimated 310 millions of 170 kgs each in 200809.

Major Phases of development in India
The development of cotton cultivation falls into five distinct phases characterized by expansion of area under cultivation, by intensive cultivation with introduction of high yielding varieties, by steady increase in both area and productivity, by stagnation in area under cultivation, decline in productivity, and production and irrigation coverage at 199697 levels and finally by resurgence of the cotton sector from 2003 04 onwards. At the time of independence, mostly short and medium staple cotton were produced in the country and there were no long and and extra long staple cotton during 1947-48; the same now constitute more than 40% of the production. Today India produces the widest range of cotton capable of spinning for 6s to 120s counts of yarn. The import of cotton particularly of Egyptian and Sudanese long and extra long staple cotton which was a regular phenomenon till 1978-79, now taken place for extra long staple varieties (ELS) and for orders in which yarn importers specify the growth to be use. Not only has that India also emerged as a net exporter of cotton in the mid-1990s and now again from 2005-06. Quality of Indian Cotton Apart from the giant strides in production and productivity, Indian cotton has also undergone a qualitative transformation since independence. Development of improved varieties and hybrids in the different staple length groups, introduction of improved production and plant protection technologies, their dissemination by extension functionaries and adoption of farmers are responsible for bringing about the distinct change in cotton scenario to its present stage. Government policies such as giving greater thrust to research and development in cotton, encouraging use of quality seeds and

the last stated function is no longer relevant as . With a view to boost cotton exports from the country. Export /Import At present both cotton exports and imports are under Open General License (OGL).pesticides and price support measures have also contributed in no small measure to changing the cotton scenario. However.4 million hectares. and 3. Similarly till 8th July. To under take price support operations whenever the market prices of kapas touch the support prices announced by the government of India without any quantitative limit 2. 2008 an import duty of 10% was in vogue. This is primarily because of lower productivity of around 560 kgs per hectare as against global average of 788 kgs per hectare in 2007. Distribution of quality inputs. support to R & D efforts Commercial cultivation of Bt. To purchase cotton to fulfill export quotas given to CCI The above role of the CCI continued under the New Textile Policy of 2000. to adopt Best Management Practices in modern agronomic methods and crop management techniques Phenomenal spread of Hybrid and Bt cottons Adoption of scientific and agronomic practices by farmers. in terms of production. improvement of Marketing Infrastructure in Market Yards and Modernization /Up. Cotton from 2002 resulting in higher yields and higher economic benefits to farmers. In terms of area under cotton cultivation. Grater application of IPM technology and effective check on pest and disease infestation Increase in area under irrigation seed. transfer of technology and development. Sustained awareness programmes by NGOs like Cotton Association of India¶s COTAAP Research foundation. However. This underscores the need for accelerating our efforts for rapid improvement in productivity. duty draw back incentive of 1% was in vogue. 2000 have helped in the aim of addressing issues relating to the increase in overall quantity and quality of cotton. India accounts for 20% of world production. CITI ± CDRA etc.. 2008 the Government of India has withdrawn the duty draw back incentive on cotton exports. (CCI) The role assigned to the CCI under the Textile Policy of June 1985 was: 1. However from 8th July. India accounts for 25% of the global area of around 33.gradation of Ginning and Pressing Factories undertaken by all the four Mini Missions of the Technology Mission on Cotton (TMC) launched in February. These are highlighted below: Dedicated efforts in the field of research and technology generation. from 8th July. However. village adoption programmes. India still has a long way to go to catch up with the world average yield. To undertake commercial operations only at CCI µs own risk. 2008 the Government of India has removed import duty of 10% along with special countervailing duty on imports of cotton Cotton Corporation of India Ltd.

. both in terms of cleanliness.3. Nevertheless CCI purchases cotton even now to under take export of cotton. Besides the above role CCI has also been designated as the nodal agency for implementation of Mini Missions III and IV of the Technology Mission on Cotton for improvement and Development of Market Yards and Modernization of Ginning and Pressing factories and thereby improving the quality of cotton by reducing contamination of cotton and ensuring better prices to the growers With a view to improve the quality of cotton. grade and trash. Farmers are indirectly benefited as it results in better price realization due to higher sale prices for traders. Targets for Mini Missions III and IV The target set for MM III is the development and improvement of 250 Market Yards by the end of 31.3.export of cotton is now free and he Government is releasing no quotas. increase per hectare productivity.2009 which have also since been accomplished TECHNOLOGY MISSION ON COTTON Benefits of MM-III and IV Quality of processing of cotton under modernized factories have improved considerably. etc. Better infrastructural facilities are available to farmers at market yards for disposal of their produce where there is better transparency in handling of his produce. 2009 .2009 which has since been accomplished. Domestic mills are in a position to get quality cotton matching international standards enabling them to compete globally for their finished products. The target set for Mini Mission IV was the Modernization / upgradation of 1000 Ginning and Pressing factories by the end of 31. to improve the processing facilities. Commercial release of Bt seeds Indian cotton farmers have started growing biotech cotton only a few years ago. Indian cotton has become fully acceptable to the domestic mills as well as international buyers of cotton. Level of contamination has come down and the cotton processed in such modernized factories is mostly free from contaminants. Area under Bt has been rapidly increasing due to increased yields and less production risks. MINISTRY OF AGRICULTURE CMini Mission-I (MM I): Cotton Research and Technology generation CMini Mission-II (MM II): Transfer of Technology and Development MINISTRY OF TEXTILES CMini Mission-III (MM III): Improvement of Marketing Infrastructure in market yards CMini Mission-IV (MM IV): Modernization/upgradation of G & P factories Initially the Scheme was meant for five years but later on it was extended up March. the Government of India had launched Technology Mission on Cotton (TMC) in February 2000 with four Mini Missions for achieving the above objectives. increase the income of cotton growers by reducing the cost of cultivation.

The yield per hectare.73-lakh hectare under cotton cultivation during 2008-09. Maharashtra. 1000 Units have been modernized/ upgraded under Mini Mission IV out of which 855 have reported competion Budgetary Provision /Release of funds Funds released during the 9th. Punjab and Haryana. which has backward linkages with cotton farmers and forward linkages with the ultimate consumers.617 hectares in association of 14. The CCI a PSU under the Ministry of Textiles is the sole Public sector organization involved in procurement and trading of cotton.3. Integrated Cotton cultivation With a view to improve the quality of cotton through transfer of technology and improved farm practices. the Corporation has taken up contract farming in all major cotton growing States in around 44.00 crores During 10th five year plan Rs. Andhra Pradesh. 241 crores which includes NER) Dues pending are under process in consultation/ approval with the IFW Price Support Mechanism Cotton is primarily marketed mostly in the form of kapas (seed cotton) in India.383 hectares with around 16. owners of ginneries operating as individual business proprietors. 10th and 11th five year plans are as under :During 9th five year plan Rs.18 lakh hectares as against 63.2009 is Rs. It was established in 1970 . The same is around 73% of the total acreage of 93. unlike in leading cotton-growing countries where the seed cotton is processed and then marketed as processed bales. there has been substantial increase in the yield per hectare in the recent years. the Government of India has been propagating Contract Farming project. The major States where Bt cultivation is taken up in a big way includes Gujarat.Area under Bt cultivation during 2008-09 has increased by around 7% at 68. During 200809.34 lakh hectares during 2007-08.103 cotton farmers. which was 302 kgs per hectare in 2002-03 has increased significantly over the years and reached 526 kgs per hectare in 2008-09 thereby showing an increase of about 74%. Madhya Pradesh. 165 crores During 11th five year plan Rs. Due to various efforts by the Ministry of Agriculture and the change in the mindset of the cotton farmers in adopting latest technology. The three marketing agencies involved in cotton trade are (i) private sector comprising traders. 55. CCI has been undertaking contract farming since 2002-03. 100 crores (the total outlay of the plan up 31.306 cotton farmers as against 40. partnership firms and private limited companies (ii) public sector agencies like the Cotton Corporation of India (CCI) and (iii) Co-operative Sector. Progress of Mini Missions III and IV 250 Projects have been sanctioned under MM III out of which 176 have reported completion .

Till 1984-85.per quintal and Rs.5 mm with micronnaire of 3.5 mm to 25 mm with micornnaire value of 4. ««««««« .primarily to conduct the price stabilization functions through the Minimum Support Price (MSP) operations of government of India and to ensure reasonable prices to cotton growers in the country. Accordingly. From 1985-86 onwards its MSP functions got reduced considerably on account of favorable market prices of cotton. the Ministry of Agriculture based on the recommendations of Advisory Board viz. the MSP for other classes is fixed by the Textile Commissioner.1 and long staple length cotton having 2.5 to 30. MSPs for other varieties were also announced by the Office of the Textile Commissioner based on normal market price differentials and technical parameters.5 to 4. 2008. Medium Staple length cotton having 2. 2500 per quintal leading to a hike of 48% and 39% over the last year.3 of new crop of seed cotton (kapas) of Fair Average Quality (FAQ) for cotton season 2008-09.3 to 5. 2500/. Commission for Agricultural Costs and Prices (CACP) fixes the MSP with a view to give incentives to the cotton farmers of the country. the Government of India fixed MSP for Long Staple and Medium Staple varieties of cotton at Rs. 500 crores by way of RE in financial year 2008-09 to meet the anticipated losses and also for the direction to CCI to dispose of cotton procured by MSP rate by offering discounts for bulk purchases.5. % span length of 24. During the decade followed by 1984-85. CCI was also declared as one of the canalizing agency for export of cotton and it exported most of the cotton from India. 1473 crores to meet the losses incurred during the cotton season 2008-09.per quintal and for long staple at Rs. Every year before the commencement of the Cotton Season (Oct to Sept). 3000/. the CCI conducted only MSP operations.. taking into consideration of the recommendation of CACP the Ministry of Agriculture had fixed MSP for two basic varieties of cotton viz. Based on the support Price of these two basic varieties of kapas seed. The prices of cotton started dipping from October. . 3000/.5% span length of 29. Looking into the cotton situation. Another Note has been placed before the Cabinet for providing the balance requirement of Rs. The Cabinet in its meeting held on 5th February approved for the provision of additional Rs. It started procuring cotton on commercial terms by paying premium over and above the MSP. Subsequently for the cotton year 2008-09.per quintal. CCI conducted significant MSP operations only twice. ostensibly on account of global economic recession and financial meltdown. The support price for medium staple length cotton has been fixed at Rs. As a result Government nominated agencies namely the Cotton Corporation of India and NAFED have to procure Kapas from the farmers at the extant MSP. the government of India made cotton imports duty free and also removed the incentive of duty drawback of 1% on cotton exports from the country.

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