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DEPARTMENT OF BUSINESS MANAGEMENT, JCD VIDYAPEETH, SIRSA

Cotton Ginning in Sirsa


Internship Report submitted to SBI in completion of the requirement of Summer Internship at State Bank of India

Submitted by: Ankit Chawla Roll no:1211310007 Submitted to: Ravinder Singh Manager (RMME) SBI Main Branch Sirsa

June 1st 2013 to August 10th 2013

State Bank of India Main Branch, Sirsa near Surkhab Chowk Branch code:00719 Ifsc Code SBIN0000719 Email id: Sbi.00719@sbi.co.in Ph.: 221190, 228268

DECLARATION CERTIFICATE
Certified that the summer internship project report Cotton Ginning In Sirsa is the bonafide work of Ankit Chawla, 1211310007 2nd year in MBA of Department of Business Administration, JCD Vidyapeeth, Sirsa carried out under my supervision during 1 June 2103 To 10 August 2103.

Place: Sirsa Date:

Signature of Mentor RAVINDER SINGH

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ACKNOWLEDGEMENT
The satisfaction that accompanies the successful completion of any task would be incomplete without acknowledging the people whose ceaseless co-operation, constant guidance and encouragement crown all the effort with success. This report has been written after a lot of dedication and hard work through a whole duration of ten weeks. Motivation and contribution of many people while writing this report cannot be left unnoticed. I am thankful to Ms Jamuna Lohia for providing me the opportunity to learn and understand in this esteemed organization. We are grateful to Mr. I D Dhingra and the whole SBI Main Branch Sirsa Team, for the support and encouragement they provided during my project. I would like to thank Mr. Ravinder Singh under whose able guidance I completed the project and I appreciate their faith and confidence in my abilities to accomplish the project. Finally, I wish to thank the people who belong to cotton ginning industries and CCI Department for their co-operation.

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Contents
Chart Used .............................................................................................................................................. 7 Student Profile ........................................................................................................................................ 8 Introduction to SBI ................................................................................................................................. 9 List of Directors on the Central Board of State Bank of India (As on 06th February, 2013) ................. 9 EVOLUTION OF SBI .......................................................................................................................... 10 Establishment .................................................................................................................................... 10 Business ............................................................................................................................................ 11 Major change in the conditions ......................................................................................................... 12 Presidency Banks Act ....................................................................................................................... 13 Presidency Banks of Bengal ............................................................................................................. 15 Imperial Bank.................................................................................................................................... 16 First Five Year Plan .......................................................................................................................... 17 TECHNOLOGY UPGRADATION ................................................................................................. 17 Our Branch ............................................................................................................................................ 19 Nature of Project ................................................................................................................................... 20 Objectives & Responsibilities ............................................................................................................... 20 Cotton.................................................................................................................................................... 21 Introduction ....................................................................................................................................... 21 History of cotton ............................................................................................................................... 21 Ancient history .............................................................................................................................. 21 Middle Ages and the Modern Era ................................................................................................. 22 British Empire ............................................................................................................................... 23 United States ................................................................................................................................. 24 HISTORY OF COTTON IN INDIA ............................................................................................ 27 World Demand & Supply Situation ...................................................................................................... 29 Country wise Balance Sheet ............................................................................................................. 31 Balance Sheets Millions of 480 lb. Bales...................................................................................... 31 Balance Sheets Metric Tons .......................................................................................................... 33 World Cotton Production & Exports Millions of 480 lbs. Bales .................................................. 35 World-Cotton-Production-Exp...................................................................................................... 36 World Cotton Consumption & Imports Millions of 480 lbs. Bales .............................................. 37 World Cotton Consumption & Imports Metric Tons .................................................................... 38 World cotton production (million tonnes), by main countries, 1980/81 - 2012/13 .......................... 39 3|Page

Cotton Consumption ......................................................................................................................... 40 World Cotton Prices.......................................................................................................................... 42 Lint Prices ..................................................................................................................................... 45 Indian Cotton Scenario ......................................................................................................................... 46 Area and Production ..................................................................................................................... 47 Arrivals ......................................................................................................................................... 47 Trade and Domestic Consumption ................................................................................................ 48 Monthly Stock Position Using USDA Washington Stock Estimates August/July Marketing Year/170 kg bales ......................................................................................................................... 50 Monthly Stock Position Using Cotton Advisory Board Stock Estimates October/September Marketing Year/170 kg bales ........................................................................................................ 51 India Weekly Shankar 6 Ex-Gin Price vs. Cotlook A-Index ........................................................ 51 India Weekly Seed Cotton Prices vs.Minimum Support Price Shankar-6 ................................. 52 Spinning Margin -- India Weekly Shankar 6 Ex-Gin Price vs. Indian Cotton Yarn Price (40s) .. 52 Cotton Production and Balance sheet ............................................................................................... 53 Cotton Balance sheet......................................................................................................................... 54 Cotton Production in Haryana .......................................................................................................... 54 Cotton Ginning.................................................................................................................................. 54 The State of Cotton Ginning Technology in the World .................................................................... 55 Brief History of Ginning ............................................................................................................... 55 Roller and Saw Ginning Technologies ......................................................................................... 57 Recent Developments in Ginning Technology ............................................................................. 59 Ginning in the World ........................................................................................................................ 61 Ginning Process by Country ......................................................................................................... 62 Recent Trends in Roller Ginning .................................................................................................. 64 Cotton Sector Structure, Ginning Technology and Scale of Operations....................................... 67 Comparative Performance of Roller and Saw Ginning..................................................................... 69 INDIAN cotton industry AT a glance in 2012 - 2013 ...................................................................... 70 State wise potential and the existing yield gap (lint in kg/ha) .......................................................... 71 Cotton Ginning In Haryana ............................................................................................................... 72 Year wise area, Average yield and Production of Cotton crop in Haryana ...................................... 72 District wise Area, Production and Yield for last five years............................................................. 73 Cotton Market (Haryana) .................................................................................................................. 73 Sirsa ...................................................................................................................................................... 76 General Characteristics of the District .............................................................................................. 76 4|Page

History of the District as an Administrative Unit .............................................................................. 76 Location & Geographical Area .......................................................................................................... 77 Topology ........................................................................................................................................... 77 Haryana Plain ................................................................................................................................ 77 CLIMATE ........................................................................................................................................ 77 RAINFALL ....................................................................................................................................... 77 TEMPERATURE .............................................................................................................................. 78 AGRICULTURE................................................................................................................................ 78 Administrative set up ........................................................................................................................ 79 Objectives of Project ............................................................................................................................. 80 Scope of Study ...................................................................................................................................... 80 Limitation of Study ............................................................................................................................... 81 Period of study ...................................................................................................................................... 81 RESEARCH METHODOLOGY .................................................................................................................. 81 TYPES OF RESEARCH ......................................................................................................................... 81 Average method........................................................................................................................... 81 Data collection method................................................................................................................. 81 Sources of data ................................................................................................................................. 82 Primary Data ................................................................................................................................. 82 Secondary Data: ............................................................................................................................ 82 RESEARCH DESIGN ................................................................................................................................ 82 FEW SAMPLES ....................................................................................................................................... 83 Sirsa Production .................................................................................................................................... 94 SWOT Analysis of Cotton Ginning Industries ........................................................................................ 97 Strengths ........................................................................................................................................... 97 Weaknesses ...................................................................................................................................... 97 Opportunities .................................................................................................................................... 97 Threats .............................................................................................................................................. 98 Conclusion ......................................................................................................................................... 98 Recommendations ................................................................................................................................ 98 Improvement for National fibre policy ............................................................................................. 98 Recommendations for enhancing production .................................................................................. 99 Improving Cotton Yield New Practice: ........................................................................................... 99 Recommendations for Improving Quality....................................................................................... 100 5|Page

Recommendations for improving infrastructure ............................................................................ 100 References .......................................................................................................................................... 101

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Chart Used
Column Chart

Bar Graph

Pie Chart

Line Graph

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Student Profile

Photo Name Fathers Name Date of Birth Address email id Mobile no 16th October 1989 119 Sector-20 Phase-I Huda Sirsa Haryana (125055) ankit16101989@gmail.com 8901253925, 8295022061 Academics Other Courses Computer Skills Internship Current Internship 10 weeks in State Bank of India, Main Branch Sirsa SSC(xth) - 76.40 HSC(XIIth) - 77.40 Graduation(B.Tech) - 69.40 Post-Graduation(MBA) - 69 till 1st semester (pursuing) EDP Course IN designing software (AutoCAD, PRO-e, CATIA & Idea) YES+ from Art of Living MS Office C,C++ and VB Languages Some other basic application J C Chawla Ankit Chawla

1 month training in SKH Metals in maintenance department 18 weeks training in HMSI in Quality Control and Production Line

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Introduction to SBI
The Bank is actively involved since 1973 in non-profit activity called Community Services Banking. All our branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. Our business is more than banking because we touch the lives of people anywhere in many ways. Our commitment to nation-building is complete & comprehensive.

List of Directors on the Central Board of State Bank of India (As on 06th February, 2013)
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Name Shri Pratip Chaudhuri Shri Hemant G. Contractor Shri Diwakar Gupta Shri A. Krishna Kumar Shri S.Vishvanathan Shri S. Venkatachalam Shri D. Sundaram Shri Parthasarathy Iyengar Shri Thomas Mathew Shri Jyoti Bhushan Mohapatra Shri S.K. Mukherjee Dr. Rajiv Kumar Shri Deepak Amin Shri Harichandra Bahadur Singh Shri Rajiv Takru Dr. Urjit R. Patel Designation Chairman Managing Director

Managing Director Managing Director Managing Director Director Director Director Director Workmen Employee Director Officer Employee Director Director Director Director Director Director

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EVOLUTION OF SBI
The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

Bank of Bengal H.O.

Establishment
The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock banking in India. So was the associated innovation in banking, viz. the decision to allow the Bank of Bengal to issue notes, which would be accepted for payment of public revenues within a restricted geographical area. This right of note issue was very valuable not only for
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the Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to the capital of the banks, a capital on which the proprietors did not have to pay any interest. The concept of deposit banking was also an innovation because the practice of accepting money for safekeeping (and in some cases, even investment on behalf of the clients) by the indigenous bankers had not spread as a general habit in most parts of India. But, for a long time, and especially up to the time that the three presidency banks had a right of note issue, bank notes and government balances made up the bulk of the invertible resources of the banks. The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.

Group Photograph of Central Board (1921)

Business
The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs.one lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium,
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indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities, including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favour of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden. Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.

Old Bank of Bengal

Major change in the conditions


A major change in the conditions of operation of the Banks of Bengal, Bombay and Madras occurred after 1860. With the passing of the Paper Currency Act of 1861, the right of note issue of the presidency banks was abolished and the Government of India assumed from 1 March 1862 the sole power of issuing paper currency within British India. The task of management and circulation of the new currency notes was conferred on the presidency

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banks and the Government undertook to transfer the Treasury balances to the banks at places where the banks would open branches. None of the three banks had till then any branches (except the sole attempt and that too a short-lived one by the Bank of Bengal at Mirzapore in 1839) although the charters had given them such authority. But as soon as the three presidency bands were assured of the free use of government Treasury balances at places where they would open branches, they embarked on branch expansion at a rapid pace. By 1876, the branches, agencies and sub agencies of the three presidency banks covered most of the major parts and many of the inland trade centres in India. While the Bank of Bengal had eighteen branches including its head office, seasonal branches and sub agencies, the Banks of Bombay and Madras had fifteen each.

Bank of Madras Note Dated 1861 for Rs.10

Presidency Banks Act


The presidency Banks Act, which came into operation on 1 May 1876, brought the three presidency banks under a common statute with similar restrictions on business. The proprietary connection of the Government was, however, terminated, though the banks continued to hold charge of the public debt offices in the three presidency towns, and the custody of a part of the government balances. The Act also stipulated the creation of Reserve Treasuries at Calcutta, Bombay and Madras into which sums above the specified minimum balances promised to the presidency banks at only their head offices were to be lodged. The Government could lend to the presidency banks from such Reserve Treasuries but the latter could look upon them more as a favour than as a right.

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Bank of Madras

The decision of the Government to keep the surplus balances in Reserve Treasuries outside the normal control of the presidency banks and the connected decision not to guarantee minimum government balances at new places where branches were to be opened effectively checked the growth of new branches after 1876. The pace of expansion witnessed in the previous decade fell sharply although, in the case of the Bank of Madras, it continued on a modest scale as the profits of that bank were mainly derived from trade dispersed among a number of port towns and inland centres of the presidency. India witnessed rapid commercialisation in the last quarter of the nineteenth century as its railway network expanded to cover all the major regions of the country. New irrigation networks in Madras, Punjab and Sind accelerated the process of conversion of subsistence crops into cash crops, a portion of which found its way into the foreign markets. Tea and coffee plantations transformed large areas of the eastern Terais, the hills of Assam and the Nilgiris into regions of estate agriculture par excellence. All these resulted in the expansion of India's international trade more than six-fold. The three presidency banks were both beneficiaries and promoters of this commercialisation process as they became involved in the financing of practically every trading, manufacturing and mining activity in the sub-continent. While the Banks of Bengal and Bombay were engaged in the financing of large modern manufacturing industries, the Bank of Madras went into the financing of large modern manufacturing industries, the Bank of Madras went into the financing of small-scale industries in a way which had no parallel elsewhere. But the three banks were rigorously excluded from any business involving foreign exchange. Not
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only was such business considered risky for these banks, which held government deposits, it was also feared that these banks enjoying government patronage would offer unfair competition to the exchange banks which had by then arrived in India. This exclusion continued till the creation of the Reserve Bank of India in 1935.

Bank of Bombay

Presidency Banks of Bengal


The Presidency Banks of Bengal, Bombay and Madras with their 70 branches were merged in 1921 to form the Imperial Bank of India. The triad had been transformed into a monolith and a giant among Indian commercial banks had emerged. The new bank took on the triple role of a commercial bank, a banker's bank and a banker to the government. But this creation was preceded by years of deliberations on the need for a 'State Bank of India'. What eventually emerged was a 'half-way house' combining the functions of a commercial bank and a quasicentral bank. The establishment of the Reserve Bank of India as the central bank of the country in 1935 ended the quasi-central banking role of the Imperial Bank. The latter ceased to be bankers to the Government of India and instead became agent of the Reserve Bank for the transaction of government business at centres at which the central bank was not established. But it continued to maintain currency chests and small coin depots and operate the remittance facilities scheme for other banks and the public on terms stipulated by the Reserve Bank. It also acted as a bankers' bank by holding their surplus cash and granting them advances against authorised securities. The management of the bank clearing houses also continued with it at many places where the Reserve Bank did not have offices. The bank was also the

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biggest tendered at the Treasury bill auctions conducted by the Reserve Bank on behalf of the Government. The establishment of the Reserve Bank simultaneously saw important amendments being made to the constitution of the Imperial Bank converting it into a purely commercial bank. The earlier restrictions on its business were removed and the bank was permitted to undertake foreign exchange business and executor and trustee business for the first time.

Imperial Bank
The Imperial Bank during the three and a half decades of its existence recorded an impressive growth in terms of offices, reserves, deposits, investments and advances, the increases in some cases amounting to more than six-fold. The advances, the increases in some cases amounting to more than six-fold. The financial status and security inherited from its forerunners no doubt provided a firm and durable platform. But the lofty traditions of banking which the Imperial Bank consistently maintained and the high standard of integrity it observed in its operations inspired confidence in its depositors that no other bank in India could perhaps then equal. All these enabled the Imperial Bank to acquire a pre-eminent position in the Indian banking industry and also secure a vital place in the country's economic life.

Stamp of Imperial Bank of India

When India attained freedom, the Imperial Bank had a capital base (including reserves) of Rs.11.85 crores, deposits and advances of Rs.275.14 crores and Rs.72.94 crores respectively and a network of 172 branches and more than 200 sub offices extending all over the country.
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First Five Year Plan


In 1951, when the First Five Year Plan was launched, the development of rural India was given the highest priority. The commercial banks of the country including the Imperial Bank of India had till then confined their operations to the urban sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas. In order, therefore, to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a state-partnered and statesponsored bank by taking over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (later named Associates). The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking sub serving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development The Bank is actively involved since 1973 in non-profit activity called Community Services Banking. All SBI branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. SBI business is more than banking because we touch the lives of people anywhere in many ways. SBI commitment to nation-building is complete & comprehensive.

TECHNOLOGY UPGRADATION
SBIs Information Technology Programme aims at achieving efficiency in operations, meeting customer and market expectations and facing competition. SBI achievements are summarized below:

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FULL BRANCH COMPUTERISATION (FCBs): All the branches of the Bank are now fully

computerised. This strategy has contributed to improvement in customer service.


ATM SERVICES: There are 21000 ATMs on the ATM Network. These ATMs are located in

1721 centers spread across the length and breadth of the country, thereby creating a truly national network of ATMs with an unparalleled reach. Value added services like ATM locator, payment of fees for college students, multilingual screens, voice over and drawl of cash advance by SBI credit card holders have been introduced.
INTERNET BANKING (INB): This on-line channel enables customers to access their account

information and initiate transactions on a 24x7, boundary less basis. 2225 branches, covering 555 centers are extending INB service to their customers. All functionalities other than Cash and Clearing have been extended to individual retail customers. A separate Internet Banking Module for Corporate customers has been launched and available at 1305 branches. Bulk upload of data for Corporate, Inter-branch funds transfer for Retail customers, online payment of Customs duty and Govt. tax, Electronic Bill Payment, SMS Alerts, E-Poll, IIT GATE Fee Collection, Off-line Customer Registration Process and Railway Ticket Booking are the new features deployed.
GOVT. BUSINESS: Software has been developed and rolled out at 7785 fully computerised

branches. Electronic generation of all reports for reporting, settlement and reconciliation of Govt. funds is available.
STEPS: Under STEPS, the bank's electronic funds transfer system; the Products offered are e-

Transfer (eT), e-Realisation (eR), e-Debit (CMP) and ATM reconciliation. STEPS handles payment messages and reconciliation simultaneously.
SEFT: SBI has launched the Special Electronic Fund Transfer (SEFT) Scheme of RBI, to

facilitate efficient and expeditious Inter-bank transfer of funds. 241 branches of our Bank in various LHO Centres are participating in the scheme. Security of message transmission has been enhanced.
MICR Centre: MICR Cheque Processing systems are operational at 16 centre viz. Mumbai,

New Delhi, Chennai, Kolkata, Vadodara, Surat, Patna, Jabalpur, Gwalior, Jodhpur, Trichur, Calicut, Nasik, Raipur, Bhubaneswar and Dehradun.

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Core Banking: The Core Banking Solution provides the state-of-the-art anywhere anytime

banking for our customers. The facility is available at 1012 branches.


Trade Finance: The solution has been implemented, providing efficiency in handling Trade

Finance transactions with Internet access to customers and greatly enhances the bank's services to Corporate and Commercial Network branches. This new Trade Finance solution, EXIMBILLS, will be implemented at all domestic branches as well as at Foreign offices engaged in trade finance business during the year.
WAN: The bank has set up a Wide Area Network, known as SBI connect, which provides

connectivity to 4819 branches/offices of SBI Group across 385 cities as at 31st March 2008. This network provides across the board benefits by providing nationwide connectivity for its business applications.

Our Branch
Branch Code Address 719 AGGAR SAIN COLONY SURKHAB CHOWK HISSAR ROAD SIRSA City PIN Code District State STD Code Phone Number Fax Number Email ID Branch Circle Branch Type IFS Code SWIFT Code FOREX Type SIRSA 125055 SIRSA HARYANA 1666 221190, 228268 01666-221190 sbi.00719@sbi.co.in CHANDIGARH REGULAR BRANCH SBIN0000719 SBININBB653 Available

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Branch Business Hours Sunday Banking Sunday Banking Business Hours Gold Coin Facility Locker Facility

6 hours per day

NO NO

YES

YES

Nature of Project
This project is part of summer training, from State Bank of India which includes study on Cotton Ginning in Sirsa. It is simply a case study written on the basis of some pre-defined methods like using of closed ended questionnaire, mean, sum, judgemental based analysis by using statistical charts and tables. This includes representing some statistics like annual average production of bales, production area consumption number in industries as well as particular area and also contains town and mandi consumption and production and arrivals of cotton at different time. It also contains the technology evolution and comparative study of western and home technology. I took the various analysis for the production details and to go through the technology used by Sirsa cotton ginning industries and from where they have taken their Credit Cash Limits so that industries can be advised for various advancement in technology and cost reduction and better production of cotton in Sirsa cotton belt.

Objectives & Responsibilities


To provide the fresh look for cotton industry. To provide the average production, consumption and arrival pattern. To provide the list of banks from which they have taken the credit cash limits. Comparative study of technology. Study of cotton market. List of industries for cotton ginning & pressing in sirsa. Satisfaction level of cotton ginners. Weaknesses of weak production and how to improve this sector.

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Cotton
Introduction
Cotton is a shrubby plant that is a member of the Mallow family. Its name refers to the cream-colored fluffy fibres surrounding small cottonseeds called a boll. The small, sticky seeds must be separated from the wool in order to process the cotton for spinning and weaving. De-seeded cotton is cleaned, carded (fibres aligned), spun, and woven into a fabric that is also referred to as cotton. Cotton is easily spun into yarn as the cotton fibres flatten, twist, and naturally interlock for spinning. Cotton fabric alone accounts for fully half of the fibre worn in the world. It is a comfortable choice for warm climates in that it easily absorbs skin moisture. Most of the cotton cultivated in the United States is short-staple cotton that grows in the American South. Cotton is planted annually by using the seeds found within the downy wool. The states that primarily cultivate cotton are located in the "Cotton Belt," which runs east and west and includes parts of California, Alabama, Arkansas, Georgia, Arizona, Louisiana, Mississippi, Missouri, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas, which alone produces nearly five million bales. Together, these states produce approximately 16 million bales a year, second only to China. Business revenue generated by cotton today is approximately $122.4 billionthe greatest revenue of any United States crop. The cotton plant is a source for many important products other than fabric. Among the most important is cottonseed, which is pressed for cottonseed oil that is used in commercial products such as salad oils and snack foods, cosmetics, soap, candles, detergents, and paint. The hulls and meal are used for animal feed. Cotton is also a source for cellulose products, fertilizer, fuel, automobile tire cord, pressed paper, and cardboard.

History of cotton
The history of cotton can be traced back to domestication, possibly as far back as 4500 BCE. Cotton played an important role in the history of the British Empire, the United States, and India, and continues to be an important crop and commodity.
Ancient history

The history of the domestication of cotton is very complex and is not known exactly. Several isolated civilizations in both the Old and World independently domesticated and converted cotton into fabric. All the same tools were invented, including combs, bows, hand spindles, and primitive looms. The oldest cotton textiles were found in graves and city ruins of civilizations from dry climates, where the fabrics did not decay completely. Some of the
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oldest cotton bolls were discovered in a cave in Tehuacn Valley, Mexico, and were dated to approximately 5500 BCE, but more recent estimates have put the age of these bolls at approximately 3600 BCE. Seeds and cordage dating to about 4500 BCE have been found in Peru.[1] The Indus Valley civilization spun cotton since at least 3000 BCE, as indicated by the ruins of Mohenjo-Daro. Around the same time, cotton was being grown and processed in Mexico, and Arizona. Pre-Incan cotton grave cloths were found in Huaca Prieta in Peru, and date back to 2500 BCE, and cotton was mentioned in Hindu hymns in 1500 BCE. Herodotus, an ancient Greek historian, mentions Indian cotton in the 5th century BCE as a wool exceeding in beauty and goodness that of sheep. When Alexander the

Great invaded India, his troops started wearing cotton clothes that were more comfortable than their previous woollen ones. Strabo, another Greek historian, mentioned the vividness of Indian fabrics, and Arian told of IndianArab trade of cotton fabrics in 130 CE. Egyptians grew and spun cotton from 6700 CE. In the 8th century the Muslim conquest of Spain expanded the European cotton trade. By the 15th century, Venice, Antwerp, and Haarlem were important ports for cotton trade, and the sale and transportation of cotton fabrics had become very profitable.
Middle Ages and the Modern Era

Cotton was a common fabric during the middle Ages, and was hand-woven on a loom. Cotton manufacture was introduced to Europe during the Muslim conquest of the Iberian Peninsula and Sicily. The knowledge of cotton weaving was spread to northern Italy in the 12th century, when Sicily was conquered by the Normans, and consequently to the rest of Europe. The spinning wheel, introduced to Europe circa 1350, improved the speed of cotton spinning. Christopher Columbus, in his explorations of the Bahamas and Cuba, found natives wearing cotton ("the costliest and handsomest... cotton mantles and sleeveless shirts embroidered and painted in different designs and colours"), a fact that may have contributed to his incorrect belief that he had landed on the coast of India. Cotton cloth started to become highly sought-after for the European urban markets during the Renaissance and the Enlightenment. Vasco da Gama, a Portuguese explorer, opened Asian sea trade, which replaced caravans and allowed for heavier cargo. Indian craftspeople had long protected the secret of how to create colourful patterns. However, some converted to Christianity and their secret was revealed by a French Catholic priest, Father Coeurdoux.
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He revealed the process of creating the fabrics in France, which assisted the European textile industry. British Empire Cotton's rise to global importance came about as a result of the cultural transformation of Europe and Britain's trading empire. Calico and chintz, types of cotton fabrics, became popular in Europe, and by 1664 the East India Company was importing a quarter of a million pieces into Britain. By the 18th century, the middle class had become more concerned with cleanliness and fashion, and there was a demand for easily washable and colourful fabric. Wool continued to dominate the European markets, but cotton prints were introduced to Britain by the East India Company in the 1690s. Imports of calicoes, cheap cotton fabrics from Kozhikode, then known as Calicut, in India, found a mass market among the poor. By 1721 these calicoes threatened British manufacturers, and Parliament passed the Calico Act that banned calicoes for clothing or domestic purposes. In 1774 the act was repealed with the invention of machines that allowed for British manufacturers to compete with Eastern fabrics.

Cotton's versatility allowed it to be combined with linen and be made into velvet. It was cheaper than silk and could be imprinted more easily than wool, allowing for patterned dresses for women. It became the standard fashion and, because of its price, was accessible to the general public. New inventions

in the 1770ssuch

as the spinning jenny, the water frame, and the spinning mulemade the British Midlands into a very profitable manufacturing centre. In 17941976, British cotton goods accounted for 15.6% of Britain's exports, and in 18041806 grew to 42.3%. The British commercial empire grew the cotton industry enormously. British cotton products were successful in European markets, constituting 40.5% of exports in 17841786. Britain's success was also due to its trade with its own colonies, whose settlers maintained British

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identities, and thus, fashions. With the growth of the cotton industry, manufacturers had to find new sources of raw cotton, and cultivation was expanded to West India. High tariffs against Indian textile workshops, British power in India through the East India Company, and British restrictions on Indian cotton imports transformed India from the source of textiles to a source of raw cotton. Cultivation was also attempted in

the Caribbean and West Africa, but these attempts failed due to bad weather and poor soil. The Indian subcontinent was looked to as a possible source of raw cotton, but intra-imperial conflicts and economic rivalries prevented the area from producing the necessary supply. The Lancashire textile mills were major parts of the British industrial revolution. Their workers had poor working conditions: low wages, child labour, and 18-hour work days. Richard Arkwright created a textile empire by building a factory system powered by water, which was occasionally raided by the Luddites, weavers put out of business by the mechanization of textile production. In the 1790s, James Watt's steam power was applied to textile production, and by 1839 200,000 children worked in Manchester's cotton mills. Karl Marx, who frequently visited Lancashire, may have been influenced by the conditions of workers in these mills in writing Das Kapital.
United States PreCivil War

Anglo-French warfare in the early 1790s restricted access to continental Europe, causing the United States to become an important and temporarily the largest consumer for British cotton goods. In 1791, U.S. cotton production was small, at only 900,000 kilograms. Several factors contributed to the growth of the cotton industry in the U.S.: the increasing British demand; innovations in spinning, weaving, and steam power; inexpensive land; and a slave labour force. The cotton gin, invented in 1793 by Eli Whitney, enormously grew the American cotton industry, which was previously limited by the speed of manual removal of seeds from the fibre, and helped cotton to surpass tobacco as the primary cash crop of the South. By 1801 the annual production of cotton had reached over 22 million kilograms, and by the early 1830s the United States produced the majority of the world's cotton. Cotton also exceeded the value of all other United States exports combined. The need for fertile land conducive to its cultivation lead to the expansion of slavery in the United States and an early 19th-century land rush known as Alabama Fever.

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Cultivation of cotton using slaves brought huge profits to the owners of large plantations, making them some of the wealthiest men in the U.S. prior to the Civil War. In the non-slaveowning states, farms rarely grew larger than what could be cultivated by one family due to scarcity of farm workers. In the slave states, owners of farms could buy many slaves and thus cultivate large areas of land. By the 1850s, slaves made up 50% of the population of the main cotton states: Georgia, Alabama, Mississippi, and Louisiana. Slaves were the most important asset in cotton cultivation, and their sale brought profits to slave owners outside of cottoncultivating areas. Thus, the cotton industry contributed significantly to the Southern upper class's support of slavery. Although the Southern small-farm owners did not grow cotton due to its lack of short-term profitability, they were still supportive of the system in the hopes of one day owning slaves.
Civil War

"King Cotton", a phrase used by Southern politicians and authors before the Civil War, verbalized their belief that an independent Confederacy would be economically successful, as well as assuring the South's victory if secession from the Union led to war, because of Britain's reliance on the fibre. Senator James Henry Hammond said in 1858. Without the firing of a gun, without drawing a sword, should they make war upon us, we could bring the whole world to our feet. What would happen if no cotton was furnished for three years? England would topple headlong and carry the whole civilized world with her. No, you dare not make war on cotton! No power on earth dares make war upon it. Cotton is King. Cotton diplomacy, the idea that cotton would cause Britain and France to intervene in the Civil War, was unsuccessful.[16] It was thought that the Civil War caused the Lancashire Cotton Famine, a period between 18611865 of depression in the British cotton industry, by blocking off American raw cotton. Some, however, suggest that the Cotton Famine was mostly due to overproduction and price inflation caused by an expectation of future shortage.

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Prior to the Civil War, Lancashire companies issued surveys to find new cotton-growing countries if the Civil War were to occur and reduce American exports. India was deemed to be the country capable of growing the necessary amounts. Indeed, it helped fill the gap during the war, making up only 31% of British cotton imports in 1861, but 90% in 1862 and 67% in 1864. The South continued to be a one-crop economy until the 20th century, when the New Deal and World War II encouraged diversification. Many ex-slaves as well as poor whites worked in the share-cropping system in serf-like conditions.
Africa and India

After the Cotton Famine, the European textile industry looked to new sources of raw cotton. The African colonies of West Africa and Mozambique provided a cheap supply. Taxes and extra-market means again discouraged local textile production. Working conditions were brutal, especially in the Congo, Angola, and Mozambique. Several revolts occurred, and a cotton black market created a local textile industry. In recent history, United States agricultural subsidies have depressed world prices, making it difficult for African farmers to compete. India's cotton industry struggled in the late 19th century because of mechanized production and American dominance of raw cotton export. India, ceasing to be a major exporter of cotton goods, became the largest importer of British cotton textiles. Mohandas Gandhi believed that cotton was closely tied to Indian self-determination. In the 1920s he launched the Khadi Movement, a massive boycott of British cotton goods. He urged Indians to use simple homespun cotton textiles, khadi. Cotton became an important symbol in Indian independence. During World War II, shortages created a high demand for khadi, and 16 million yards of cloth were produced in nine months. The British Raj declared khadi subversive; damaging to the British imperial rule. Confiscation, burning of stocks, and jailing
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of workers resulted, which intensified resistance. In the second half of the 20th century, a downturn in the European cotton industry led to a resurgence of the Indian cotton industry. India began to mechanize and was able to compete in the world market.
Decline in the British cotton industry

In 1912, the British cotton industry was at its peak, producing eight billion yards of cloth. In World War I, cotton couldn't be exported to foreign markets, and some countries built their own factories, particularly Japan. By 1933 Japan introduced 24-hour cotton production and became the world's largest cotton manufacturer. Demand for British cotton slumped, and during the interwar period 345,000 workers left the industry and 800 mills closed. India's boycott of British cotton products devastated Lancashire and Blackburn, and 74 mills closed in under four years. In World War II, the British cotton industry saw an upturn and an increase in workers, with Lancashire mills being tasked with creating parachutes and uniforms for the war. In the 1950s and '60s, many workers came from the Indian sub-continent and were encouraged to look for work in Lancashire. An increase in the work force allowed mill owners to introduce third (night) shifts. This resurgence in the textile industry did not last long, and by 1958, Britain had become a net importer of cotton cloth. Modernization of the industry was attempted in 1959 with the Cotton Industry Act. Mill closures occurred in Lancashire, and it was failing to compete with foreign industry. During the 1960s and '70s, a mill closed in Lancashire almost once a week. By the 1980s, the textile industry of North West Britain had almost disappeared.
HISTORY OF COTTON IN INDIA

Cotton in India is the "King of Crops" and is also the "White Gold" of India. The history of Cotton is as old as the history of India. From time immemorial, India was the only country known for its cotton fabrics, the rest of the world being clad in wool. An examination of the samples of apparel found in the excavation at Mohen-jo-daro disclosed to the world the height of excellence reached in the manufacture of cotton textiles on India some 5000 years ago. In fact, for over 3000 years (1500 BC to AD 1700) India was recognized as the cradle of the cotton industry. The earliest reference to cotton is found in the Rig-Veda written about 1500 BC. More than a thousand years later, the great Greek historian Herodotus testified that
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Indians possessed "a kind of plant, which, instead of fruit, produces wool, of a finer and better quality than that of sheep : of this the Indians make their clothes". Soon India had a flourishing trade in cotton textiles with Greece, Egypt, Persia and the Roman Empire. For twenty centuries thereafter, Indian cotton fabrics clothed the kings, the nobles and the slaves alike in most parts of the Old World. What is astonishing is that even two millenniums after the Indian cotton muslins found their way in the ancient civilization of Athens and Rome, cotton spinning and weaving remained almost the exclusive monopoly of skilful Indian craftsmen. As Baines observes, it was not until the 13th century that the cotton industry "was introduced into Italy or Constantinople, or even secured a footing in the neighbouring empire of China". And even so, outside India, in both Europe and Asia, the industry had only "a lingering and ignoble existence" and was hard put to face the stiff competition from imports of finer Indian muslins and calicoes. While cotton marked the beginning of human civilization, it also inaugurated the Industrial Revolution in England during the 18th century with the advent of Hargreaves "jenny" in 1764 and Arkwright's "spinning frame" in 1769, both of which mechanised cotton spinning. Soon followed Cartwright's power loom that mechanised weaving. The establishment and development of the Lancashire textile industry was only a short step from these inventions. The factory system began in England in 1785. The spread of British rule over India coincided with the growth of industrial revolution in England. And what the mighty Roman and Ottoman Empires failed to achieve, the British did. They gave a deathblow to the ancient Indian cotton industry through massive import of cheaper cotton textiles into India from the United Kingdom. The Indian monopoly in cotton muslins for more than three millenniums ended in less than three decades after the British consolidated their power in India following the defeat of the Marathas in 1818. Yet, even the British rulers of India could not neglect Indian cotton. For "practically till the end of the eighteenth century, no source of supply of cotton other than India was known to the world". Even as early as in 1764, India exported about 10,000 bales of cotton to Great Britain. But the growing Lancashire industry needed more and better cotton. Small wonder, the British Government in India "took every conceivable measure to aid and encourage - and even to undertake - the cultivation in India of more and better cotton and its clean marketing to Great Britain". While these efforts reduced India from riches to rags in less than half a century, and transformed the age-old ace producer of finest cotton muslins in the world into a
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decayed colonial vestige supplying raw-cotton to feed the industrial revolution of both the West and East (Japan), to the dismay of the British Government the spirit of Swadeshi also emerged simultaneously, which later fanned the freedom movement and led eventually to the exit of the British from this country in 1947. The twentieth century began with a new upsurge in cotton cultivation. Exports to Japan peaked 1.6 million bales in 1916-17 and though declined after the cessation of World War I hostilities in 1918 following the revival of European markets, they were still high and averaged around 40 to 50 per cent of India's total exports. Meanwhile, as India began to lose its export market in yarn in the face of intensive competition from Japan, the stage was set for the vertical integration of the Indian cotton textile industry. Till then the emphasis in the industry was more on spinning than on weaving. The situation now began to change and composite mills with both spinning and weaving units emerged. The Swadeshi movement of 1906-10 also gave a good impetus to the development of the industry. By 1914, the number of mills had increased to 214. And on the eve of the establishment of the East India Cotton Association in 1921-22, there were 271 cotton mills in the country with nearly 7 million active spindles and 1,25,000 looms, producing more than 300 million kg. of yarn and 1500 million meters of cloth. It is therefore not surprising that cotton acreage spread to 10 million hectares and production of lint rose to a new all-time high of 5.5 million bales towards the end of the 1920s. Exports still absorbed almost two-third of the output. Such was the Indian cotton scene at the time of the birth of the East India Cotton Association in 1922. During the preceding hundred years, cotton cultivation and production in the country had grown nearly ten-fold. No doubt, during the 19th century India was ravaged by frequent famines and droughts and after failed to feed its own people. But we continued to grow more and more cotton to feed the textile industry of the world.

World Demand & Supply Situation


The first U.S. Department of Agriculture (USDA) cotton forecast for 2013/14 projects that world cotton production will decrease while consumption increases, although consumption is expected to remain below production for the fourth consecutive season (fig. 1). Global production is projected to decline about 3 per cent from 2012/13 (to 117.8 million bales) as cotton area is reduced slightly in 2013/14. World cotton production will be at its lowest in

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three seasons, with China, India, the United States, and Pakistan accounting for more than 70 per cent of global cotton production in 2013/14. World cotton consumption for 2013/14 is projected at 110.4 million bales, a 2-percent increase from the current season, as use continues to rebound from 2011/12s 8-year low. Modest growth in world gross domestic product (GDP) is expected to support cotton consumption. China, India, and Pakistan are expected to lead global cotton mill use and account for a combined 65 per cent of world consumption in 2013/14.

(Quantity in million Metric tons) Year Beginning August 1 World Beginning stock World Cotton Production World Cotton Consumption World Cotton Exports World Ending stocks 2006-07 12.53 26.76 26.48 8.04 12.81 2007-08 12.81 26.07 26.68 8.47 12.25 2008-09 12.25 23.5 23.86 6.6 11.94 2009-10 11.94 22.24 25.52 7.79 8.67 2010-11 8.67 25.36 24.5 7.63 9.58 201112* 9.58 27.79 22.1 9.82 15.27

2012-13 **
15.27 26.39 23.78 9.79 17.88

As per latest ICAC release dated 1st July 2013

* estimated

** projected

30 25 20 15 10 5 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12* 2012-13 **

Series1 Series2 Series3 Series4 Series5

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Country wise Balance Sheet


Balance Sheets Millions of 480 lb. Bales World Balance Sheet
millions of 480 lb. bales 2009/10 2010/11 2011/12 2012/13 2013/14 June Beginning Stocks Production Supply Consumption Ending Stocks Stocks/Use Ratio 61.5 102.2 163.7 118.9 46.7 39.2% 46.7 116.3 163.0 114.4 49.4 43.2% 49.4 125.1 174.6 103.3 71.2 68.9% 71.2 121.2 192.5 107.4 85.6 79.7% 84.9 117.2 202.1 110.2 92.5 83.9% 2013/14 July 85.6 118.0 203.6 109.8 94.3 85.9%

WorldLessChina Balance Sheet


millions of 480 lb. bales 2009/10 2010/11 2011/12 2012/13 2013/14 June Beginning Stocks Production Imports Supply MillUse Exports Demand Ending Stocks Stocks/Use Ratio 40.2 70.2 25.7 136.1 68.9 35.5 104.5 32.4 47.0% 32.4 85.8 23.9 142.2 68.4 35.4 103.7 38.8 56.8% 38.8 91.1 20.5 150.5 65.3 45.8 111.1 40.1 61.5% 40.1 86.2 26.4 152.8 71.4 46.4 117.8 35.6 49.8% 34.9 83.2 27.4 145.5 74.2 38.4 112.5 33.6 45.2% 2013/14 July 35.6 84.0 27.3 146.8 73.8 38.2 112.0 35.4 48.0%

China Balance Sheet


millions of 480 lb. bales 2009/10 2010/11 2011/12 2012/13 2013/14 June Beginning Stocks Production Imports Supply MillUse Exports Demand Ending Stocks Stocks/Use Ratio 21.4 32.0 10.9 64.3 50.0 0.0 50.0 14.2 28.0% 14.2 30.5 12.0 56.7 46.0 0.1 46.1 10.6 23.0% 10.6 34.0 24.5 69.1 38.0 0.1 38.1 31.1 82.0% 31.1 35.0 20.0 86.1 36.0 0.1 36.1 50.0 139.0% 50.0 34.0 11.0 95.0 36.0 0.1 36.1 58.9 163.4% 2013/14 July 50.0 34.0 11.0 95.0 36.0 0.1 36.1 58.9 163.4%

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India Balance Sheet


millions of 480 lb. bales 2009/10 2010/11 2011/12 2012/13 2013/14 June Beginning Stocks Production Imports Supply MillUse Exports Demand Ending Stocks Stocks/Use Ratio 10.6 23.8 0.5 34.9 19.8 6.6 26.3 9.4 36.0% 9.4 26.4 0.5 36.2 20.6 5.0 25.6 11.2 44.0% 11.2 27.5 0.6 39.3 19.8 11.1 30.8 8.9 29.0% 8.9 26.5 1.5 36.9 22.5 7.2 29.7 7.7 26.0% 7.7 27.0 1.0 35.7 23.3 5.7 29.0 7.2 25.0% 2013/14 July 7.7 28.0 1.2 36.9 23.3 5.8 29.1 8.4 28.9%

U.S. Balance Sheet


millions of 480 lb. bales 2009/10 2010/11 2011/12 2012/13 2013/14 June Beginning Stocks Production Imports Supply MillUse Exports Demand Ending Stocks Stocks/Use Ratio 6.3 12.2 0.0 18.5 3.6 12.0 15.6 2.9 19.0% 2.9 18.1 0.0 21.1 3.9 14.4 18.3 2.6 14.0% 2.6 15.6 0.0 18.2 3.3 11.7 15.0 3.4 22.0% 3.4 17.3 0.0 20.7 3.5 13.3 16.8 3.9 23.0% 3.6 13.5 0.0 17.1 3.5 11.0 14.5 2.6 17.9% 2013/14 July 3.9 13.5 0.0 17.4 3.5 11.0 14.5 2.9 20.0%

Pakistan Balance Sheet


millions of 480 lb. bales 2009/10 2010/11 2011/12 2012/13 2013/14 June Beginning Stocks Production Imports Supply MillUse Exports Demand Ending Stocks Stocks/Use Ratio 3.4 9.2 1.6 14.2 10.4 0.7 11.1 3.0 27.0% 3.0 8.6 1.4 13.1 9.9 0.7 10.6 2.5 24.0% 2.5 10.6 0.9 14.0 10.0 1.2 11.2 2.8 25.0% 2.8 9.3 2.2 14.3 11.0 0.5 11.5 2.9 25.0% 2.9 9.5 3.0 15.4 12.0 0.3 12.3 3.1 25.1% 2013/14 July 2.9 9.5 2.7 15.1 11.7 0.3 12.0 2.9 24.2%

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Balance Sheets Metric Tons World Balance Sheet


millions of metric tons 2009/10 2010/11 2011/12 2012/13 2013/14 June Beginning Stocks Production Supply Consumption Ending Stocks Stocks/Use Ratio 13.4 22.2 35.6 25.9 10.2 39.2% 10.2 25.3 35.5 24.9 10.8 43.2% 10.8 27.2 38.0 22.5 15.5 68.9% 15.5 26.4 41.9 23.4 18.6 79.7% 18.5 25.5 44.0 24.0 20.1 83.9% 2013/14 July 18.6 25.7 44.3 23.9 20.5 85.9%

WorldLessChina Balance Sheet


millions of metric tons 2009/10 2010/11 2011/12 2012/13 2013/14 June Beginning Stocks Production Imports Supply MillUse Exports Demand Ending Stocks Stocks/Use Ratio 8.7 15.3 5.6 29.6 15.0 7.7 22.7 7.1 47.0% 7.1 18.7 5.2 31.0 14.9 7.7 22.6 8.5 56.8% 8.5 19.8 4.5 32.8 14.2 10.0 24.2 8.7 61.5% 8.7 18.8 5.7 33.3 15.5 10.1 25.6 7.7 49.8% 7.6 18.1 6.0 31.7 16.1 8.4 24.5 7.3 45.2% 2013/14 July 7.7 18.3 5.9 32.0 16.1 8.3 24.4 7.7 48.0%

China Balance Sheet


millions of metric tons 2009/10 2010/11 2011/12 2012/13 2013/14 June Beginning Stocks Production Imports Supply MillUse Exports Demand Ending Stocks Stocks/Use Ratio 4.7 7.0 2.4 14.0 10.9 0.0 10.9 3.1 28.0% 3.1 6.6 2.6 12.4 10.0 0.0 10.0 2.3 23.0% 2.3 7.4 5.3 15.1 8.3 0.0 8.3 6.8 82.0% 6.8 7.6 4.4 18.7 7.8 0.0 7.9 10.9 139.0% 10.9 7.4 2.4 20.7 7.8 0.0 7.9 12.8 163.4% 2013/14 July 10.9 7.4 2.4 20.7 7.8 0.0 7.9 12.8 163.4%

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India Balance Sheet


millions of metric tons 2009/10 2010/11 2011/12 2012/13 2013/14 June Beginning Stocks Production Imports Supply MillUse Exports Demand Ending Stocks Stocks/Use Ratio 2.3 5.2 0.1 7.6 4.3 1.4 5.7 2.0 36.0% 2.0 5.7 0.1 7.9 4.5 1.1 5.6 2.4 44.0% 2.4 6.0 0.1 8.6 4.3 2.4 6.7 1.9 29.0% 1.9 5.8 0.3 8.0 4.9 1.6 6.5 1.7 26.0% 1.7 5.9 0.2 7.8 5.1 1.2 6.3 1.6 25.0% 2013/14 July 1.7 6.1 0.3 8.0 5.1 1.3 6.3 1.8 28.9%

U.S. Balance Sheet


millions of metric tons 2009/10 2010/11 2011/12 2012/13 2013/14 June Beginning Stocks Production Imports Supply Mill Use Exports Demand Ending Stocks Stocks/Use Ratio 1.4 2.7 0.0 4.0 0.8 2.6 3.4 0.6 19.0% 0.6 3.9 0.0 4.6 0.8 3.1 4.0 0.6 14.0% 0.6 3.4 0.0 4.0 0.7 2.6 3.3 0.7 22.0% 0.7 3.8 0.0 4.5 0.8 2.9 3.6 0.8 23.0% 0.8 2.9 0.0 3.7 0.8 2.4 3.2 0.6 17.9% 2013/14 July 0.8 2.9 0.0 3.8 0.8 2.4 3.2 0.6 20.0%

Pakistan Balance Sheet


millions of metric tons 2009/10 2010/11 2011/12 2012/13 2013/14 June Beginning Stocks Production Imports Supply Mill Use Exports Demand Ending Stocks Stocks/Use Ratio 0.7 2.0 0.3 3.1 2.3 0.2 2.4 0.7 27.0% 0.7 1.9 0.3 2.9 2.2 0.1 2.3 0.5 24.0% 0.5 2.3 0.2 3.1 2.2 0.3 2.4 0.6 25.0% 0.6 2.0 0.5 3.1 2.4 0.1 2.5 0.6 25.0% 0.6 2.1 0.7 3.4 2.6 0.1 2.7 0.7 25.1% 2013/14 July 0.6 2.1 0.6 3.3 2.5 0.1 2.6 0.6 24.2%

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World Cotton Production & Exports Millions of 480 lbs. Bales World Cotton Production
millions of 480 lb. bales 2009/10 2010/11 2011/12 2012/13 2013/14 June China India United States Pakistan Brazil Australia Uzbekistan Turkey Turkmenistan Burkina Mali Greece Argentina Rest of World African Franc Zone EU27 World 32.0 23.8 12.2 9.2 5.5 1.8 3.9 1.8 1.5 0.7 0.4 0.9 1.0 7.5 2.1 1.1 102.2 30.5 26.4 18.1 8.6 9.0 4.2 4.1 2.1 1.8 0.7 0.5 0.9 1.4 8.1 2.1 1.2 116.3 34.0 27.5 15.6 10.6 8.7 5.5 4.2 3.4 1.4 0.8 0.9 1.3 1.0 10.2 3.0 1.6 125.1 35.0 26.5 17.3 9.3 5.8 4.6 4.5 2.6 1.6 1.2 0.9 1.2 0.8 10.0 4.0 1.5 121.2 34.0 27.0 13.5 9.5 7.0 4.5 4.5 2.3 1.5 1.1 1.0 1.0 1.0 9.4 4.0 1.2 117.2 2013/14 July 34.0 28.0 13.5 9.5 7.0 4.5 4.5 2.3 1.5 1.1 1.0 1.0 0.9 9.3 4.0 1.2 118.0

World Cotton Exports


millions of 480 lb. bales 2009/10 2010/11 2011/12 2012/13 2013/14 June United States India Australia Uzbekistan Brazil Burkina Mali Turkmenistan Greece Malaysia Cote d'Ivoire Benin Tajikistan Rest of World African Franc Zone EU27 World 12.0 6.6 2.1 3.8 2.0 0.8 0.4 1.2 0.9 0.0 0.2 0.4 0.4 4.7 2.1 1.1 35.6 14.4 5.0 2.5 2.7 2.0 0.7 0.5 1.1 0.8 0.1 0.3 0.3 0.3 5.0 2.0 1.1 35.5 11.7 11.1 4.6 2.5 4.8 0.7 0.6 0.8 1.0 1.0 0.4 0.3 0.5 5.9 2.3 1.4 45.9 13.3 7.2 6.0 3.2 4.3 1.2 0.9 1.1 1.2 0.9 0.6 0.5 0.7 5.5 3.7 1.6 46.5 11.0 5.7 4.2 3.2 2.6 1.2 1.0 1.0 0.9 0.8 0.7 0.6 0.6 5.1 3.9 1.3 38.4 2013/14 July 11.0 5.8 4.2 3.2 2.6 1.2 1.0 1.0 0.9 0.8 0.7 0.6 0.6 5.0 3.9 1.2 38.3

Note: African Franc Zone includes Benin, Burkina Faso, Cameroon, Chad, Cote d'Ivoire, and Mali.

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World-Cotton-Production-Exp World Cotton Production


millions of metric tons 2009/10 2010/11 2011/12 2012/13 2013/14 June China India United States Pakistan Brazil Australia Uzbekistan Turkey Turkmenistan Burkina Mali Greece Argentina Rest of World African Franc Zone EU27 World 7.0 5.2 2.7 2.0 1.2 0.4 0.8 0.4 0.3 0.2 0.1 0.2 0.2 1.6 0.5 0.2 22.2 6.6 5.7 3.9 1.9 2.0 0.9 0.9 0.5 0.4 0.1 0.1 0.2 0.3 1.8 0.5 0.3 25.3 7.4 6.0 3.4 2.3 1.9 1.2 0.9 0.7 0.3 0.2 0.2 0.3 0.2 2.2 0.6 0.3 27.2 7.6 5.8 3.8 2.0 1.3 1.0 1.0 0.6 0.3 0.3 0.2 0.3 0.2 2.2 0.9 0.3 26.4 7.4 5.9 2.9 2.1 1.5 1.0 1.0 0.5 0.3 0.2 0.2 0.2 0.2 2.0 0.9 0.3 25.5 2013/14 July 7.4 6.1 2.9 2.1 1.5 1.0 1.0 0.5 0.3 0.2 0.2 0.2 0.2 2.0 0.9 0.3 25.7

World Cotton Exports


millions of metric tons 2009/10 2010/11 2011/12 2012/13 2013/14 June United States India Australia Uzbekistan Brazil Burkina Mali Turkmenistan Greece Malaysia Cote d'Ivoire Benin Tajikistan Rest of World African Franc Zone EU27 World 2.6 1.4 0.5 0.8 0.4 0.2 0.1 0.3 0.2 0.0 0.0 0.1 0.1 1.0 0.5 0.2 7.7 3.1 1.1 0.5 0.6 0.4 0.1 0.1 0.2 0.2 0.0 0.1 0.1 0.1 1.1 0.4 0.2 7.7 2.6 2.4 1.0 0.5 1.0 0.1 0.1 0.2 0.2 0.2 0.1 0.1 0.1 1.3 0.5 0.3 10.0 2.9 1.6 1.3 0.7 0.9 0.3 0.2 0.2 0.3 0.2 0.1 0.1 0.1 1.2 0.8 0.3 10.1 2.4 1.2 0.9 0.7 0.6 0.3 0.2 0.2 0.2 0.2 0.1 0.1 0.1 1.1 0.9 0.3 8.4 2013/14 July 2.4 1.3 0.9 0.7 0.6 0.3 0.2 0.2 0.2 0.2 0.1 0.1 0.1 1.1 0.8 0.3 8.3

Note: African Franc Zone includes Benin, Burkina Faso, Cameroon, Chad, Cote d'Ivoire, and Mali.

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World Cotton Consumption & Imports Millions of 480 lbs. Bales World Cotton Consumption
millions of 480 lb. bales 2009/10 2010/11 2011/12 2012/13 2013/14 June China India Pakistan Turkey Brazil Bangladesh United States Vietnam Indonesia Mexico Thailand Uzbekistan South Korea Rest of World African Franc Zone EU27 World World Cotton Imports millions of 480 lb. bales 2009/10 2010/11 2011/12 2012/13 2013/14 June China Turkey Bangladesh Pakistan Vietnam Indonesia India Thailand South Korea Mexico Taiwan Malaysia Egypt Rest of World African Franc Zone EU27 World Total 10.9 4.4 3.9 1.6 1.7 2.5 0.5 1.8 1.0 1.4 1.0 0.3 0.6 5.2 0.0 1.0 36.7 12.0 3.4 3.7 1.4 1.6 2.4 0.5 1.8 1.0 1.2 0.8 0.3 0.6 5.4 0.0 1.1 35.9 24.5 2.4 3.2 0.9 1.6 2.3 0.6 1.3 1.2 1.0 0.9 1.1 0.3 3.8 0.0 0.9 45.1 20.0 3.8 3.6 2.2 2.5 2.4 1.5 1.6 1.3 1.0 1.0 1.0 0.5 4.1 0.0 0.9 46.4 11.0 4.0 3.6 3.0 2.5 2.5 1.0 1.6 1.2 1.2 1.0 1.0 0.6 4.2 0.0 0.9 38.4 2013/14 July 11.0 4.0 3.6 2.7 2.5 2.5 1.2 1.6 1.3 1.2 1.0 1.0 0.6 4.1 0.0 0.9 38.3 50.0 19.8 10.4 5.9 4.4 3.9 3.6 1.6 2.5 1.9 1.8 1.1 1.0 11.2 0.2 1.1 118.9 46.0 20.6 9.9 5.6 4.3 3.7 3.9 1.6 2.4 1.7 1.7 1.3 1.0 10.8 0.1 1.1 114.4 38.0 19.8 10.0 5.6 4.0 3.3 3.3 1.7 2.2 1.7 1.3 1.4 1.1 10.0 0.1 0.9 103.3 36.0 22.5 11.0 6.0 4.1 3.6 3.5 2.3 2.4 1.8 1.5 1.5 1.3 10.1 0.1 0.9 107.4 36.0 23.3 12.0 6.1 4.2 3.8 3.5 2.5 2.5 1.9 1.6 1.5 1.2 10.2 0.1 0.9 110.2 2013/14 July 36.0 23.3 11.7 6.1 4.2 3.8 3.5 2.5 2.5 1.9 1.6 1.5 1.3 10.0 0.1 0.9 109.8

Note: African Franc Zone includes Benin, Burkina Faso, Cameroon, Chad, Cote d'Ivoire, and Mali.

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World Cotton Consumption & Imports Metric Tons World Cotton Production
millions of metric tons 2009/10 2010/11 2011/12 2012/13 2013/14 June China India United States Pakistan Brazil Australia Uzbekistan Turkey Turkmenistan Burkina Mali Greece Argentina Rest of World African Franc Zone EU27 7.0 5.2 2.7 2.0 1.2 0.4 0.8 0.4 0.3 0.2 0.1 0.2 0.2 1.6 0.5 0.2 6.6 5.7 3.9 1.9 2.0 0.9 0.9 0.5 0.4 0.1 0.1 0.2 0.3 1.8 0.5 0.3 7.4 6.0 3.4 2.3 1.9 1.2 0.9 0.7 0.3 0.2 0.2 0.3 0.2 2.2 0.6 0.3 7.6 5.8 3.8 2.0 1.3 1.0 1.0 0.6 0.3 0.3 0.2 0.3 0.2 2.2 0.9 0.3 7.4 5.9 2.9 2.1 1.5 1.0 1.0 0.5 0.3 0.2 0.2 0.2 0.2 2.0 0.9 0.3 2013/14 July 7.4 6.1 2.9 2.1 1.5 1.0 1.0 0.5 0.3 0.2 0.2 0.2 0.2 2.0 0.9 0.3

World

22.2

25.3

27.2

26.4

25.5

25.7

World Cotton Exports


millions of metric tons 2009/10 2010/11 2011/12 2012/13 2013/14 June United States India Australia Uzbekistan Brazil Burkina Mali Turkmenistan Greece Malaysia Cote d'Ivoire Benin Tajikistan Rest of World African Franc Zone EU27 World 2.6 1.4 0.5 0.8 0.4 0.2 0.1 0.3 0.2 0.0 0.0 0.1 0.1 1.0 0.5 0.2 7.7 3.1 1.1 0.5 0.6 0.4 0.1 0.1 0.2 0.2 0.0 0.1 0.1 0.1 1.1 0.4 0.2 7.7 2.6 2.4 1.0 0.5 1.0 0.1 0.1 0.2 0.2 0.2 0.1 0.1 0.1 1.3 0.5 0.3 10.0 2.9 1.6 1.3 0.7 0.9 0.3 0.2 0.2 0.3 0.2 0.1 0.1 0.1 1.2 0.8 0.3 10.1 2.4 1.2 0.9 0.7 0.6 0.3 0.2 0.2 0.2 0.2 0.1 0.1 0.1 1.1 0.9 0.3 8.4 2013/14 July 2.4 1.3 0.9 0.7 0.6 0.3 0.2 0.2 0.2 0.2 0.1 0.1 0.1 1.1 0.8 0.3 8.3

Note: African Franc Zone includes Benin, Burkina Faso, Cameroon, Chad, Cote d'Ivoire, and Mali.

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World cotton production (million tonnes), by main countries, 1980/81 - 2012/13

A declining trend of cotton's share in textiles fibres since the 1970s compare to the chemical textiles (branched off oil) was stated- in 1960 the part of cotton was of 68.3% against 21,8% for chemical textiles and at the opposite the percentages were respectively of 39,7% and 57,7% in 2002. Cotton remains nevertheless by far the most important natural fibre of the 20th century (see "Uses"). In a development context, cotton is crucially important for income and employment provided in its production and processing. Much of the growth of cotton production since the end of the Second World War (WWII) was due to improved yield (output per hectare more than multiplied by four quadrupled between 1945/46 and 2006/07, from 0.2 tons per hectare (t/ha) to 0.8 tons per hectare, according to the International Cotton Advisory Committee - ICAC), rather than to expanded area (cultivated land increased by only 35% over the 1945/46-2006/07 period, expanding from 22.3 million hectares to 34.8 millions). The development of the cultivated area mainly occurred at the end of the 1940s and remained relatively unchanged since then. In 2007, cotton was grown in 90 countries. In 2006/07, the four main producing countries were China, India, the USA and Pakistan and accounted for approximately three quarters of world output. If we added Uzbekistan and Brazil, six countries would account for 83% of world cotton production. This concentration in cotton production, which appears to increase for several years, has to be put into perspective by considering the impact of domestic policy reforms in the largest cotton producing countries, as well as climatic and sanitary contingencies. For example, global output increased by 30% between the seasons 1983/84
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and 1984/85, rising to 19.2 million tonnes up from 14.5 million tonnes. Most of the growth came from China, where increases in production (Chinese production edged upward from 4.6 million tonnes in 1983/84 to 6.3 million tonnes in the 1984/85 season) were prompted by incentive measures taken by the Government. To stimulate production growth, the Government used price incentives (price adjustment increased from 15% to 50% according to the main commodities) and above-quota premiums in cotton procurement (in China farmers were assigned quotas for delivering cotton at administered prices). Additional policy measures were taken to stimulate cotton production in the 1993/4 season, including loans at preferential rates and advance payments to cotton producers before planting. The combined effect of these policy reforms was quite remarkable. Cotton production increased by 3.7 million tonnes in the 1992/93 season to 4.34 million tonnes in 1993/94 (a 16.1% increase). The increase in production remained around the trend in the 1995/96 season, as the Government announced that it would increase cotton procurement price by 25%.

Cotton Consumption
Since the beginning of the 1940s, world cotton consumption has increased at an average annual growth rate of about 2% (roughly the same as production). Growth in the demand for cotton was comparatively higher in the 1950s and 1980s, with an average growth rate of 4,6% a year during the 1950s and 3% in the 1980s. Developing countries have absorbed much of global cotton output since the end of WWII. Their share in global consumption has become even more significant since the beginning of 2000s. Developing countries accounted for approximately 78% of global cotton consumption between 1981and 1999; since 2000 their ratio has been above 80%; according to projections based on ICAC figures, in 2010 they would absorb almost 94% of global cotton output. Cotton consumption has shifted to developing countries mainly as a reflection of rising wage levels in developed countries. In the textile sector, labour accounts for about 1/6 of production costs. This means that raising labour costs eroded the competitive edge of developed countries, and contributed to the shifting of cotton processing to low-cost economies (most notably Asia and the Maghreb, but also Africa). Following specialisation, certain countries were able to forge new patterns of comparative advantages out of competitive differences in quality. These countries built on the competitiveness and dynamism of the textile sector, which became the foundation stone of their development. Other exogenous factors (such as the development of new technologies and improved

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infrastructures) favoured delocalisation of production by multinational companies based in developed countries. The main cotton producing economies also account for a large part of consumption. According to ICAC data, China, the United States, India, and Pakistan as a whole have accounted for approximately more than 55% of global cotton consumption over the period 1980 to 2008. Their overall consumption has risen considerably in volume (see figure below). For example, consumption multiplied by 3 in China and by more than 3 in India. Pakistan has had the largest increase in volume (which multiplied by 6 between 1980 and 2008) in order to responded to export-driven demand for textiles.

Cotton consumption (million tonnes), by main countries, 1980/81-2012/13

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World Cotton Prices


Monthly average Cotlook A Index (FE) from 2007-08 onwards Month August September October November December January February March April May June July 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Cotlook Index in US Cents per lb. 66.62 68.12 68.93 69.68 69.52 73.21 75.05 80.18 75.44 74.12 77.04 77.29 78.04 77.09 62.3 54.96 55.47 57.71 55.21 51.5 56.78 61.95 61.39 64.8 64.14 63.99 66.82 71.78 76.78 77.39 80.05 85.8 88.08 90.07 93.04 90.35 104.73 126.55 155.47 168.22 178.93 213.18 229.67 216.62 165.52 167.16 114.1 116.9 110.61 104.75 95.45 101.11 100.75 99.5 100.1 88.79 82.18 83.97 84.4 84.15 82.17 80.87 83.37 85.51 89.71 94.45 92.68 92.74 93.08

The Fortnightly average kapas prices along with percentage over Support prices for main varieties grown in the country during 2012-13 vis--vis 2011-12 cotton season: Prices in Rs. per quintal Month J-34 %tag e MSP 1213 MSP 1112 01-102012 01-102011 15-102012 15-102011 31-104100 7.89 --4350 12.98 --4940 14.88 4450 43.55 4300 36.51 4600 46.03 3800 15.15 4800 29.73 3970 4.47 --4150 7.79 --4600 6.97 4350 40.32 --------3920 3.15 --4000 3.89 ----3100 3150 3150 3300 3700 3800 3800 H-4 %tag e 3850 S-6 %tag e 3900 BB %tag e DCH32 4300 %tag e

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2012 30-102011 15-112012 15-112011 30-112012 30-112011 15-122012 15-122011 31-122012 31-122011 15-012013 15-012012 31-012013 31-012012 15-022013 15-022012 28-022013 28-022012 15-034810 26.58 4625 21.71 4925 27.92 4800 25.64 --43 | P a g e 4180 34.84 3700 17.46 4300 36.51 3550 7.58 4289 15.92 4950 4370 104.3 5 30.26 4780 25.78 4850 25.97 4300 10.25 --3925 24.6 4350 38.1 3880 17.58 4777 29.11 4465 17.5 4065 6.97 4365 13.37 3900 0 --4500 45.16 3978 26.29 4475 42.06 3890 17.88 4869 31.59 4255 11.98 3980 4.74 4300 11.69 3900 0 4840 12.56 4725 52.42 4000 26.98 4525 43.65 3950 19.7 4790 29.46 4195 10.39 3980 4.74 4275 11.04 3900 0 4550 5.81 4210 35.81 3850 22.22 4350 38.1 3850 16.67 4676 26.38 4225 11.18 4000 5.26 4350 12.98 3900 0 4829 12.3 3950 27.42 3750 19.05 4250 34.92 3750 13.64 4500 21.62 4350 14.47 4120 8.42 4325 12.34 3900 0 4700 9.3 4070 31.29 3850 22.22 4200 33.33 3650 21.67 4465 31.32 4270 12.37 4050 6.58 4275 11.04 3900 0 4759 10.67 4130 33.23 4200 33.33 4525 43.65 4000 21.21 4750 28.38 4325 13.81 4175 9.86 4190 8.83 3900 0 4600 6.97 4480 44.52 --4100 30.16 4100 24.24 ---

2013 15-032012 31-032013 31-032012 15-042013 15-042012 30-042013 30-042012 15-052013 15-052012 31-052013 31-052012 15-062013 15-062012 30-062013 30-062012 15-072013 15-072012 -------------5550 44.15 4680 20 ----3650 15.87 4100 30.16 --------5400 40.25 4650 19.23 --3980 28.39 3550 12.7 3975 26.19 ------4450 17.1 5075 31.81 4680 20 --3925 26.61 3600 14.29 4050 28.57 3750 13.64 ----4475 17.76 4975 29.22 4600 17.95 --4200 35.48 3800 20.63 4100 30.16 3800 15.15 --4650 22.37 4660 22.63 4950 28.57 4650 19.23 --4210 35.81 3700 17.46 4175 32.54 3750 13.64 --4600 21.05 4480 17.89 4925 27.92 4150 6.41 --4050 30.65 3700 17.46 4260 35.24 3650 10.61 --4760 25.26 4725 24.34 5000 29.87 4700 20.51 --4285 38.23 3725 18.25 4350 38.1 3850 16.67 --4925 29.61 4675 23.03 4975 29.22 4500 15.38 --4440 43.23 3700 17.46 4250 34.92 3625 9.85 ---

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Lint Prices Fortnightly lint pries, announced by the Cotton Association of India, Mumbai for main varieties during 2012-13 vis--vis 2011-12 corresponding period last year. (Lint prices in Rs. per candy spot) Date J-34 Dec13 01-102012 14-102012 31-102012 15-112012 30-112012 15-122012 31-122012 15-012013 31-012013 15-022013 28-022013 15-032013 30-032013 15-042013 30-0436700 30700 37200 33500 37500 34600 39200 35500 48500 45200 37100 30000 37200 32800 38400 34000 39900 35100 49400 45000 37800 31600 38500 33400 38800 34600 40000 34300 50000 45500 38900 31000 39500 32200 38900 33700 39700 33500 48000 44500 37700 30300 38100 32600 37200 34100 37500 34500 47300 47000 35000 33400 35300 34500 34600 35500 35300 36000 46100 49000 33600 33800 33800 35300 34100 36700 34700 36500 45000 48800 32700 33900 33100 35700 33700 36900 34100 37000 45000 45000 32700 31400 32900 33200 33900 43000 33900 35000 45200 53000 32800 30200 33100 33500 34100 34400 34500 35000 45700 44000 32100 30500 32400 33600 33700 35100 34500 35100 45200 46000 31800 30800 32000 35000 33800 37800 35100 37100 44700 48500 31500 32700 31800 36300 33800 39800 34200 39400 45500 49000 31300 36100 32300 38000 32900 39600 35000 39800 45500 49500 31800 11Dec 33900 H-4 Dec13 33400 11Dec 35500 S-6 Dec13 33700 11Dec 38000 BB Dec13 35200 11Dec 39000 DCH-32 Dec13 48000 11Dec 49500

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2013 15-052013 31-052013 15-062013 30-062013 15-072013 41700 33700 42200 34700 42900 35700 43700 38600 52200 51500 40600 32200 41100 33000 41300 34500 42000 36100 51000 47200 39400 31200 39900 33000 40400 32600 41000 34400 50000 45500 37400 30300 38000 32800 38600 33000 39700 35100 48500 47000 36100 32300 36500 33500 37500 34000 38900 35000 48500 45000

Indian Cotton Scenario


Cotton planting is underway in northern India where the crop is largely irrigated. Planting is slightly ahead of the year-ago pace and is approaching 1.0 million hectares (eight per cent of area). The monsoon has reached south-western India on time and cotton prices are slightly higher than a year ago, both factors are supportive of the current area and production forecasts for 2013/14. 2012/13 exports are about to breach the USDA Washington estimate. FAS Mumbai recommends an increase to 7.2 million 480 pound bales to capture anticipated exports during the balance of the marketing year. An expected increase in monthly imports has yet to begin, but higher imports are projected before the end of the local marketing year.

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Area and Production

Cotton planting across northern India, where the crop is largely irrigated, for the kharif (summer) 2013/14 crop had progressed to 935,000 ha as of May 24, slightly higher compared to last years area of 913,000 hectares at the same time. Temperatures across northern India have been higher than usual which has sparked some concern about the effects of the extreme heat on emerging cotton plants, but temperatures have moderated over the past few days, and high temperatures are not unusual at this time of year. The monsoon reached the coast of south-western India on time and meteorologists are optimistic that early progress will be normal which should enable sowing in the central and southern India to proceed apace. While winter rains are normally scant (an inch or less) across major cotton growing areas, winter rainfall was below normal in Gujarat and Maharashtra, Indias largest cotton producing states. Reservoir levels in some areas are also well below average which could have some effect on farmers planting decisions, but the crop is primarily rain-fed in central India and farmers planting activities are more likely to be tied to the performance of the monsoon than reservoir levels. Seed cotton prices have consistently traded near 40 cents/lb (see Figure 1b) which is generally above the price levels that farmers observed in 2012 when they planted 11.8 million hectares despite a delayed start to the monsoon. It is not clear when the government will announce the new minimum support price for cotton. While the 2012/13 price was announced prior to the onset of the bulk of cotton planting, in the past, the price has often been announced after planting has concluded. As discussed in recent reports, a significant increase in the minimum support price could lead to widespread procurement if Indias government-established price floor is set too high relative to international cotton prices. Without a new minimum price in place, farmers may consider crops such as guar in parts of the north and soybeans in central India, but cotton area is expected to increase slightly as long as market prices are attractive and rainfall is adequate. Cottons relative drought tolerance can also make it an attractive planting option if the monsoon is weak in certain areas. Seed and fertilizer supplies appear to be adequate across major cotton growing areas and production and area estimates are unchanged.
Arrivals

On May 26, 2013, cotton arrivals had reached 31.17 million 170 kg bales (24.3 million 480 lb bales / 5.3 mmt) compared to 32.08 million 170 kg bales (25 million 480 lb bales / 5.4 mmt) last year. The three per cent reduction in the pace of arrivals is supportive of the lower (compared to a year ago) 2012/13 production estimate. High temperatures may also have
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prompted farmers to hold cotton as stocks lose moisture and weight in hot weather. Daily arrivals are reported between 80,000 to 85,000 170 kg bales. The Cotton Corporation of India continues to auction stocks of limited quantities on a daily basis. Total sales have reached 400,000 170 kg bales leaving 1.9 million 170 kg bales of stocks with the Cotton Corporation of India.
Trade and Domestic Consumption

The Indian rupee has weakened to its lowest level in the past seven months, but export demand remains weak in the absence of Chinese buying. Nevertheless, preliminary trade data suggest that exports reached 8.9 million 170 kg bales (6.9 million 480 lb bales / 1.5 mmt see Table 1b) through the end of May, indicating that the 2012/13 export estimate established by USDA Washington analysts is about to be reached. FAS Mumbai again recommends an increase in the 2012/13 export estimate to account for anticipated exports during the balance of the marketing year. As reported previously, Indian mills have reportedly purchased relatively large quantities of cotton, FAS Mumbai believes that the bulk of that cotton will arrive during the 2013/14 marketing year and has adjusted the PS+D accordingly. Fuelled by strong yarn exports to China and Bangladesh, 2012/13 consumption continues to exceed FAS Mumbai expectations and the PS+D now reflect the USDA Washington estimate. Yarn export registrations for April have risen by more than 85 per cent on a year-toyear basis. Demand for yarn from local buyers and exporters are expected to stay firm over the next two months. 2011/12 PS+D changes reflect adjustments recommended in previous reports. Changes to the 2013/14 import and export forecasts reflect previous FAS Mumbai analysis and the consumption forecast is higher than previously forecast by FAS Mumbai, but remains below the USDA Washington forecast. Forecast ending stock levels for 2012/13 and 2013/14 exclude loss adjustments of 500,000 bales.

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Monthly Stock Position Using USDA Washington Stock Estimates August/July Marketing Year/170 kg bales

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Monthly Stock Position Using Cotton Advisory Board Stock Estimates October/September Marketing Year/170 kg bales

India Weekly Shankar 6 Ex-Gin Price vs. Cotlook A-Index

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India Weekly Seed Cotton Prices vs.Minimum Support Price Shankar-6

Spinning Margin -- India Weekly Shankar 6 Ex-Gin Price vs. Indian Cotton Yarn Price (40s)

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Cotton Production and Balance sheet


The Cotton Advisory Board, in its meeting held on 17th April 2013 has projected cotton production during 2012-13 cotton season at 340 lakh bales of 170 kgs each, as per State-wise details given below:
Area in lakh hectare/Production in lakh bales/Yield kgs per hectare

2012-13*
State Area Punjab Haryana Rajasthan North Total Gujarat Maharashtra Madhya Pradesh Central Total Andhra Pradesh Karnataka Tamil Nadu South Total Orissa Others Grand Total 5.06 6.14 4.5 15.7 24 41.46 6.08 71.54 22.69 4.85 1.26 27.76 1.19 0.5 117.73 Production 20 24 16 60 87 74 18 179 76 13 6 95 4 2 340 Yield 672 664 604 650 616 303 503 425 569 456 810 561 571 680 491 Area 5.6 6.41 4.7 16.71 29.62 41.25 7.06 77.93 18.79 5.54 1.33 25.66 1.02 0.46 121.78

2011-12 Production 18.5 26 17.5 62 120 74 18 212 56 14 6.5 76.5 2.5 2 355 Yield 562 690 633 631 689 305 433 462 507 430 831 507 417 739 496

* As per CAB dated 17th April 2013

* Projected

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Cotton Balance sheet


(Quantity in lakh bales of 170 kgs each ) Item Supply Opening stock Crop size Imports Total Availability Demand Mill Consumption Small-Mill consumption Non-Mill Consumption Total Consumption Exports Total Disappearance Carry Forward *As estimated by CAB in its meeting held on 17-4-13 P-Provisional 245 22 20 287 81 368 37 223.09 21.09 10 254.18 129.59 383.77 29 40.00** 340 25 405 45.77 355 12 412.77

2012-13 (P)*

2011-12

**Upward revision in opening stock to 40 lakh bales has been made considering adjustment in spill over stock over the years

Cotton Production in Haryana Cotton Ginning


From the field, seed cotton moves to nearby gins for separation of lint and seed. The cotton first goes through dryers to reduce moisture content and then through cleaning equipment to remove foreign matter. These operations facilitate processing and improve fibre quality. The cotton is then air conveyed to Cotton Ginning gin stands where revolving circular saws pull the lint through closely spaced ribs that prevent the seed from passing through. The lint is removed from the saw teeth by air blasts or rotating brushes, and then compressed into bales weighing approximately 500 pounds. Cotton is then moved to a warehouse for storage until it is shipped to a textile mill for use. A typical gin will process about 12 bales per hour, while some of todays more modern gins may process as many as 60 bales an hour.

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The State of Cotton Ginning Technology in the World


Brief History of Ginning Ginning in the Early Days

Cotton fibres must be separated from the seed before they can be spun to yarn and used to manufacture textile goods. Ginning is the process of separating cotton fibres from the seeds. Devices for separating cotton fibre from seed have existed since 4000 BC. The first method of separating the cotton seed from the fibre was with the human fingers. The seed was simply removed by hand. Pinch ginning was extremely time-consuming as one person could only gin about 0.3 kg of per day. The oldest mechanical method known for separating the fibres from the seeds is the single roller gin. It used a smooth roller pushed by hand or feet (foot roller gin) over the cotton against a hard and smooth surface, usually a flat rock. The action of the roller against the smooth surface would literally squeeze the seed from the lock of cotton. This method was relatively efficient in separating the lint from the seed. However, the work was very slow and tedious, and yielded about 0.5 kg of lint per day. A two-roller system was invented in India by 1000 BC. The Churka gin consisted of two small diameter wooden cylinders held together by a frame and rotated by a crank. One person fed the cotton with one hand and turned a crank at the same time. Counter-rotating at the same speed, the rollers would squeeze the cotton boll1as it passed between them, pinching and pulling the fibres without crushing the seeds. The Churka increased the daily production of one person to about 2 kg of lint. The Churka Gin was used for centuries in India, and was most efficient and considerably easier to perform when handling naked seeded varieties with loosely attached fibres
The Invention of Saw Ginning

Demand for cotton by English textile factories increased during the 18th century. In America, Sea Island cotton, a long staple variety2, could only be grown successfully in a narrow band along the Carolina and Georgia Coast but could not be grown successfully in the interior. The
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more robust short staple, fuzzy seeded varieties could be more widely cultivated. However, their fibbers were shorter in length, reducing yarn and cloth quality, and resisted separation when passed through the roller gin, since they were tightly attached to the seed surface. Consequently, the fibre was generally pulled from the seed by hand, which was time consuming and labour intensive. Eli Whitney invented the cotton engine, or gin for short, in 1794, based on the principle of carding of the New England textile machinery. It used wire teeth (spikes) hammered into a hand-driven rotating wooden cylinder to snare the cotton fibres and pull them through a grate. The wooden lots in this grate were too narrow for the cotton seed to pass, so that the fibres were pulled away from the seeds. A revolving brush, operated via a belt and pulleys, then removed the lint from the spikes. The new machine pulled the short staple fibre from the seed more quickly than the roller gin's pinching action. It was 50-100 times faster than hand ginning. Henry Ogden Holmes received a patent in 1796 for an improved gin that used saws rather than spikes to remove the fibres from the seed. The saws were spaced on a shaft to provide openings that allowed the clean seed to drop out to the bottom. Holmes invention made ginning a continuous rather than a batch process, and greatly increased capacity. The saw gin could produce up to 25 kg of lint daily, making cotton production profitable in the southern states. The basic principles developed by Whitney and Holmes, enhanced quantity over quality, and marked the beginning of the modern cotton industry. The development of the saw-gin type cotton gin resulted in a dramatic increase in cotton production in the United States. The saw gin was especially effective in separating the hard-to remove seeds in upland cottons. However, this type of gin could not be used on Sea Island cotton as it damaged the long silky fibres. Roller gin manufacturers found their products restricted to the limited market for long-staple cotton. Textile manufacturers adapted to the shorter, lower quality fibre.
Improvements in Roller Ginning

In 1840, Fones McCarthy invented a more efficient roller gin which consisted of a single leather ginning roller, a stationary knife, and a reciprocating knife, which pulled the seed from the lint as the lint was held by the roller and stationary knife. The McCarthy ginning roller was much greater in diameter than the Churka type roller and hence had greater capacity4. This new type of roller gin, referred to as the McCarthy gin, became as popular in
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many countries as the Whitney saw gin was in the USA. Between 1840 and 1940, various improvements were made in single and double roller gins. The reciprocating knife roller gin of the McCarthy design is capable of producing 70 to 90 kg of extra-long staple (ELS) lint per hour (and 35 to 45 kg of ginned upland). Although the McCarthy gin was a major improvement over the Churka type gin, machine vibration due to the reciprocating knife along with maintenance problems did not permit to reach high ginning rates. In the late 1950s and early 1960s, a rotary-knife roller gin (Rotobar) was developed by the USDA South-western Cotton Ginning Research Laboratory. The Rotary Knife Gin Stand uses a large diameter roller and a stationary knife to exert a pulling action on the fibres in a manner very similar to that of the McCarthy Gin. However, a small diameter rotary knife replaced the reciprocating knife to provide the necessary seed pushing action at the point of ginning. The rotary knife roller gin stand allowed increased ginning rates, 4-7 times that of the McCarthy Gin (225 to 350 kg of extra-long staple lint per hour, and 100 to 175 kg of upland lint). It is today the only roller-type gin used in the United States for Pima extra-long staple cotton.
Roller and Saw Ginning Technologies

The fiber-seed attachment force differs for varieties, field conditions, moisture content, and other factors, but is typically about 55% of the breaking force, suggesting that the fibers could normally be removed from the seed without breakage. All the currently available ginning machinery in the world is based on two fundamental principles for separating lint from seeds, roller ginning and saw ginning. The gin stand, whether saw or roller, removes (pulls) the fiber from the seed and is the heart of the ginning system.
Roller Ginning

Roller ginning is the most primitive way of removing lint from seeds. There have been many variations and refinements in the machines working in many countries around the world but the fundamental principle of a harsh pulling of fibers from the seed coat has not changed. Fibers are gripped between rollers, blades or a roller and a blade and stretched to be separated from seeds. The space through which fibers are stretched is so narrow that it does not permit seeds passing through with lint. The process is comparatively slow but considered to be gentle.

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Roller-type gins include the reciprocating knife single roller (McCarthy roller gin), the double roller and the rotary knife roller (Rotobar). In a double roller (DR) gin, two leather rollers, pressed against a stationary knife, rotate in opposite direction. When the seed cotton is fed to the gin, fibers adhere to the rough surface of the roller and are carried in between the fixed knife and the roller, and partially gripped between them. Oscillating knives beat the seeds from top and separate the fibers, which are gripped from the seed end. The seeds are carried forward on the roller and doffed out of the machine. Fiber comes out from the bottom side. The McCarthy roller gin utilizes a leather roller to draw the fibers between a fixed knife and the roller. The pulling action of the roller on the fibers combined with the pushing action of the moving knife is required to remove the fibers from each seed. The seed then falls through a seed grid and the fibers are removed from the roller by a rotating doffer. In a rotary knife roller gin, seed cotton is applied to the ginning roller, with the separation of fiber and seed taking place as the lint is pulled under the stationary knife. The rotary knife directs seed cotton to the ginning point, sweeps cottonseed away from the ginning point, and releases the seed cotton that was not fully ginned to be drawn back to the tip of the stationary knife for further ginning. The number of roller gin stands installed determines the capacity of the ginnery (provided that it is not limited by the capacity of the bale press). Roller ginning systems in the US normally include similar seed cotton cleaning as used for upland cotton. Cleaning equipment may include cylinder cleaners, stick machines, and revolving screen (impact) cleaners, depending on seed cotton cleanliness (whether it is machine picked or handpicked.) Tower dryers and hot-air cylinder cleaners are commonly used for seed cotton drying. Lint cleaning in roller gins is different from saw gins and varies among locations. The most common lint-cleaning sequence utilizes incline, impact, and airjet cleaners. Saw-type lint-cleaners are only used for machine-picked cotton to remove motes, broken seed, entanglements and pin trash not removed in seed cotton cleaning. Roller ginned cotton is baled using the same pressing equipment as upland cotton.

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Saw Ginning

In saw gins, the cotton lint is removed from the seed by pulling it with saw teeth through metallic ribs. Each saw passes between two stationary steel ribs spaced so as to allow the lint to pass through while preventing the cottonseed from doing so. The principal parts of a saw gin are saws, ribs and a brush or a blast of air for cleaning the lint from the saws. Saw ginning is faster but fiber characteristics are more damaged than in roller ginning. The number of saws, ranging from 90 to 200, determines the size and the capacity of a single gin stand. The number of gin stands installed and the number of saws per stand determine the capacity of a ginnery, which is also limited by the capacity of the baling press and of the feeding and cleaning machinery.
Recent Developments in Ginning Technology

The process of ginning and pressing cotton is standard and time tested. Nevertheless, significant technological advancements have taken place in the area of technology during the last decade which has resulted in improved productivity. Efforts have continuously been made to improve the fundamentals of ginning without sacrificing efficiency, while preserving the intrinsic quality of fibers, obtaining the maximum length of fiber without breakage, producing lint free of trash and contaminants, undamaged clean seeds, at the lowest cost per unit ginned. The approach has been to make the process as gentle as possible and to reduce the harshness of saw gins, and to increase the productivity of roller gins. The focus is no longer on basic ginning mechanism but on combining ginning with auxiliary functions, and integrating them into a comprehensive ginning system. Extensive research carried out on cage ginning has been discontinued. The principle was to use an air stream to separate fibers from seeds, with a series of rollers mounted on the outer surface of a circular-rotating cage. The quality of fibers was better than with saw ginning, but it was not possible to remove all lint from the seeds. In the late 1990s, the Templeton Rotary Gin has been designed to produce roller gin quality long staple cotton at the speed of a saw gin, to simplify the technology used in cotton ginning and reduce the cost of ginning. It used eight knives to create eight places to gin instead of one knife and one ginning place in roller gins. However, due to feeding problems this gin could not be commercialized.

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Efforts have been made to measure and use color, trash and moisture measurements online to monitor and adjust the ginning process. USTER INTELLIGIN monitors the ginning process through a system of online sampling stations. The sensing technology is similar to the one used in HVI. Online measurements provide information on moisture, color and trash for adjusting processing. Power roll technology was developed by engineers at the Cotton Production and Processing Research Unit of the USDA-ARS. It uses a powered paddle roll to turn the cotton in the roll box of the gin stand and bring it into contact with the gin saw cylinder. As the teeth of the saw capture more cotton fiber, a three stand gin plant which normally runs at 36 bales per hour could now run consistently at 42 bales per hour. Much emphasis has been placed on lint cleaners, both in research and new product development. There has been a trend to limit the stages of saw lint cleaners to improve turnout and reduce fiber damage, while increasing the usage of air-jet cleaners.
High-Speed Roller Ginning

Over the last five decades, the USDA-ARS Cotton Ginning Research Laboratory in Mesilla Park (New Mexico has been instrumental in the development of the modern rotary-knife roller gin and has performed extensive research on roller gins in an effort to optimize their performance. Since the mid 1980s, Mesilla Park researchers, have investigated a variety of components of roller ginning operation, not only to make it more effective on Pima cotton, but also as a potential cost-effective alternative for ginning upland cotton for a more quality oriented market. The most recent research applied many of the concepts learned in previous studies to modify a conventional rotary-knife roller gin stand into a high-speed version, through the increase of rotary knife and ginning roller speeds and the increase of pressure between the ginning roller and stationary knife. Other changes to the conventional machinery set-up included modifications to the extractor feeder above the gin stand, increased horsepower for the ginning roller drive, and a cooling system with blower for the ginning roller, to preserve ginning roller life. The work was carried out on the three major brands of late-model roller gins (Continental, Consolidated, and Lummus). Lummus engineers worked closely with USDA/ARS researchers to design conversion kits for upgrading existing late-model roller gins and feeders (regardless of manufacturer) to the high-speed configuration.

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When ginning upland cotton, the high-speed roller gin stand ginned at a rate comparable to saw ginning, 4 bales per hour versus a standard rate of about one bale per hour. The highspeed roller gin stand had the same horsepower requirement of a saw gin stand. Roller ginning, when compared to saw ginning, produced upland fiber that was about one staple length longer, had fewer short fiber and naps ,had higher turnout, but contained more foreign matter in the lint and cottonseed. At higher speeds, seed damage and carry-over increase. According to the manufacturer, the new Lummus Series 2000 Rota-Matic TM Roller Gin and Feeder, has a processing capacity up to three times higher than previously attainable on both upland and ELS cottons. Since 1996, a Turkish textile and gin machinery manufacturer, Balkan Makina, Aydin, has designed and developed a full line of cotton ginning machinery, including pre-cleaning, lintcleaning and rotary-knife roller gin machinery10, It was primarily sold in Turkey to clean machine-picked cotton but also exported to Azerbaijan and Sudan. The capacity of the rotobar is one bale per hour. The high-speed model11can reach 3 bales per hour but the manufacturer recommends not to exceed 1.6 bales per hour, in order not to increase the carryover and damage to seeds (seed coat fragments12 The Indian manufacturer Bajaj Steel Industries Ltd has developed a complete ginning system based on improved double roller gins, including cleaning, conveying and pressing. The capacity of the Jumbo double roller is rated between 65 and 105 kg of lint per hour depending on the type of cotton.
Ginning Equipment Manufacturers

Located in the USA, the largest saw-type gin manufacturers, Lummus13 and Continental Eagle, also manufacture rotary knife roller gins. Most double roller gin manufacturers are located in India (Bajaj14, etc). There are several manufacturers of saw and double roller gins in China. Turkey manufactures double rollers (Sumer) and rotary knife rollers (Balkan Makina). The major ginning equipment manufacturers are listed in Appendix

Ginning in the World


Compared to saw ginning, roller ginning is a gentler way of separating the cotton lint from the seed. However, the low capacities typically obtained with roller gins provide an economic barrier to a more widespread use.

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Ginning Process by Country

The most commonly produced and traded cotton lint variety in the world belongs to the species Gossypium hirsutum, which is also known as upland cotton. Saw gins are generally used to process the fuzzy seed upland cotton, which has a short to medium-long staple length (less than 1 inch to 1-7/32 inch), wherever it is grown. Therefore, the saw-type cotton gin is, by far, the prevalent type of ginning in the world, notably in China, the United States, Pakistan, Brazil, Uzbekistan, West and Central Africa (WCA), Australia, Greece and Syria. However, saw-ginning does contribute to fiber damage (increased short fiber15 content, reduced uniformity16 Extra Long Staple cottons (ELS 1-3/8 inch and above) belong to the species Gossypium barbadense, and accounted for 3 per cent of world cotton production in 2007/08, and increased neps), which lowers mill efficiency and yarn quality, especially in spinning mills equipped with modern technology. 17. While it is possible to gin these black seed types of cotton, which are commonly referred to as a variation of Egyptian cottons, with a saw gin, the resulting quality is substantially lower than that obtained with roller gins. With saw gins fiber breakage results in a shorter staple. Therefore, roller-type gins (using either a reciprocating knife or a rotary knife) are used to process Egyptian, American-Egyptian, Pima and Sea Island cottons, which are normally used for producing very fine high quality yarns18 Notwithstanding, in two of the major cotton producing countries, India and Turkey, roller-gin equipment is in preference for processing upland cotton. Upland cotton is also roller ginned in several smaller producing countries in Asia and Africa. . Conversely, roller ginning is not efficient for short and medium-short staple upland varieties (1-1/16 inch or shorter). According to the ICAC Secretariat, about 15% of the world cotton production was ginned on roller gins in 1995/96. This share increased to an estimated 22% of the world production (26.2 million tons) in 2007/08. In addition to the 750 000 tons of ELS cottons, about 5 million tons, or 20% of the 25.25 million tons of upland cotton, were roller ginned.

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Roller Ginning of Upland Cotton June 2013

Roller gins are used for hand-picked (Asia, Africa), and machine-picked cotton (USA, Turkey). Double roller gins are extensively used in India, Turkey and ESA. The roller gins in Asia, Africa and Turkey are mainly reciprocating knife type roller gins. Rotary knife or rotobar gins with automatic feed control are used for all long staple cotton in the USA and Central Asia. India, the second largest producer, consumer and exporter of cotton, concentrates 83% of the world production of roller ginned upland cottons, followed by Turkey (12%). An estimated 79% of the production of upland cottons is roller ginned in India19. There were 3,342 ginning and pressing installations operating during the 2001/02 season, including 177 saw gin factories20. Roller gins are considered more suitable for ginning superior/medium long staple cotton, while saw gins are usually preferred for ginning short and medium staple cotton. Turkey does not grow ELS cotton, and 85% of the production is roller ginned. In 2000/01, there were 669 gins, including 32 saw gins. Some roller-gin units are very old, but they are preferred because of their ability to preserve the original fiber lengths. Investments were made in saw ginning to increase processing capacity, and because of its ability to produce cleaner lint and its superior performance in ginning seed cotton with rain moistened/damaged, or with high thrash content.

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In the USA, 976 gins were operating in 2007/08, including 21 saw gins processing mostly ELS Pima cotton. In China, old roller gins were replaced by saw gins during the first phase of modernization of the Chinese ginning industry that started in 1955. Higher-capacity saw gins were adopted during the second phase of modernization/liberalization that began in the 1980s. Roller gins are still used to process ELS cottons grown in the Xinjiang region. In Pakistan, some of the 2% of total production which is ginned on roller gins belongs to Gossypium arboreum. In total, there are 8 roller gins (and over 1,200 saw gins), some of them engaged in ginning only Gossypium hirsutum and Gossypium arboreum. In India and Iran, where G. arboreum and G. herbaceum are grown on a significant area, a large quantity of short staple cotton is ginned domestically on small roller gins. In Australia, there are 2 mixed roller/saw combinations (out of 37 gins). The above review of ginning technology in the world shows that, contrary to common belief, roller gins can be used for medium staple upland cotton. Genetically engineered cotton resistant to insects was first commercialized in 1996, and 10 countries had authorized commercial production of biotech (GM) cotton in 2008. The ICAC Secretariat estimates that 47% of world cotton area was planted to biotech varieties in 2007/08, and this area accounted for about half of world production and exports. So far, biotechnology applications have been limited to developing insect-resistant and herbicide-tolerant varieties, and other forms of biotech cotton are not expected to be released in the near future. As genes inserted into the varieties do not affect fiber characteristics, all considerations and recommendations made in this study apply equally to conventional and biotech cotton varieties.
Recent Trends in Roller Ginning

During the last 10 years, developments in roller ginning technology, or more precisely developments towards the integration of roller ginning into a single system, helped various countries in Asia and East Africa particularly India to increase their ginning capacity. The trend is to integrate all operations21into a single process, with no manual handling of material at any stage of the process. Another significant trend is the increasing use of roller gins (double roller and rotary knife type) for both fuzzy and black-seed varieties of medium and long staple cottons to cope with the more stringent demand for quality lint in the world market. 21 Feeding, drying, pre-cleaning, ginning, lint-cleaning, pressing and baling.
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22 Significantly, the largest cotton farm in the US (J.G. Boswell, Co.) discontinued the use Lummus SG and installed 3 plants equipped with 24 RG from Consolidated. In the USA, there is an increasing trend towards roller ginning of medium-long staple varieties. Dunavant of California started roller ginning Acala in Arizona in the 80s. Since 2000, several producers 22, have replaced their saw gin stands with high capacity roller gin stands (1 for 3 for the same capacity) to process both Pima and Acala varieties.
India

Until the 1990s, most of the roller gins (single or double roller) in India were inefficient and costly. 70% of the ginning mills did not have any method of controlling moisture content of the cotton, and half of the ginning mills did not have any pre-cleaning facilities. 85% of the cotton was manually carried from the storage point to the ginning mills. Many roller gin installations had no cleaners and were often fed manually. Lint was also often conveyed by hand to the press. As a result, Indian cotton had the reputation of being the most contaminated origin in the world. Tiny units producing trashy and contaminated cotton and units doing pressing and baling only were incompatible with a quality-driven market for textiles. In contrast, saw gins had auto-feeder mechanisms and 27 pre-cleaning equipment, which contributed to the reduction in contamination, by reducing human contact and handling. In 2000, the Government of India launched a mission called 'Technology Mission on Cotton (TMC) to modernize and upgrade 500 ginning and pressing (G&P) factories in eight years, out of the 4,000 units in the country, in order to increase their productivity and improve the quality of cotton. One of the main purpose of modernization/upgrade of ginneries was to produce cottons free of trash and contamination through the automatization of cotton feeding and handling to replace manual labor operations. Ginners were offered a subsidy of up to Rp 2.7 million (about $60,000). Basically, the modernization consisted in integrating the double roller gin stands into a complete ginning system with auto feeder system, pneumatic conveyors for seed cotton and lint, seed cotton pre-cleaners and lint cleaners, humidifiers, and automatic hydraulic cotton baling press. Cleaner cotton also reduces maintenance requirements. Small units have a minimal processing capacity of 3-4 bales (170 kg) per hour with 12 standard double rollers. Large units have a minimal processing capacity of 6-8 bales (170 kg) per hour with 24 standard double rollers, 18 Jumbo double roller or three 90-saw gin stands.

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Turkey During the last decade, machine picking quickly replaced manual picking of seed cotton in most cotton growing areas of Turkey. Most double roller gin plants were equipped with additional pre-cleaning and lint-cleaners devices manufactured by Balkan to reduce thrash content in machine picked cottons. As a larger volume of cotton was picked in a shorter period of time, the capacity of several gins was increased by replacing old roller gins with complete ginning systems for machine-picked cottons based on rotobar gins with automatic feed control, also manufactured by Balkan. The largest cooperative, Taris, installed a large saw-gin plant to increase its capacity. Africa Sudan is growing both ELS (Barakat) and upland (Acala) cotton varieties. In the 1990s, the Sudan Cotton Company Ltd (SCCL) invested in saw gins to increase its capacity and in 2004/05 there were 2 saw gins in addition to the 10 roller gins. SCCL has undertaken to upgrade and increase its ginning capacity23. Balkan Makina is installing 10 gin plants in five different locations, each having one roller gin line and one saw gin line of the same capacity24. As cotton is handpicked, the gins are equipped with super jets instead of saw-type lint cleaners. A number of new gins have been installed during the last decade in ESA countries. Roller gins are generally installed to reduce the investment cost, and eventually to preserve fiber quality, while saw gins are installed when there is a need to process large volumes rapidly. In Tanzania, two of the major ginners, Alliance Ltd and Olam Tanzania, have installed roller gins of the same capacity than their existing saw gins in the same location25. They give preference to the roller gin for quality and outturn and use the saw gin only when needed to gin volume. Alliance has paired Indian-made Jumbo double rollers with US-made precleaning and lint-cleaning equipment. Olam installed a Indian-made pre-cleaners and a secondhand Continental press. In Zambia and Zimbabwe, a number of new roller gins have being installed. However, most ginning capacity in these countries still consists of saw gins. In Zambia, Alliance has set up a 40-DR plant and reserved space to add another 40 stands within short time if needed. The leading ginner (Dunavant) is considering an investment in roller ginning. In Zimbabwe, there are currently 5 roller gins and 15 saw gins. Alliance has installed a 60 DR plant with US pre-cleaning. Cottco is planning to expand the capacity of its Lummus RG
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plant (12 rotobars) located in the North from 10,000 tons to 25,000 tons with the high speed technology to process the longer staple variety (LS92). Bajaj has exported double roller gins to Kenya, Madagascar, Nigeria, Tanzania, Uganda, Zambia and Zimbabwe. In WCA countries there was no new investment in ginning during the last decade, except in Burkina Faso (modern saw gins from the US and Brazil). There is now an overcapacity in all countries.
Other Countries

One high speed Lummus roller gin and feeder has been installed in Brazil to process upland cotton in order to produce a premium fiber for the market. The double roller ginning technology has recently been adopted in Peru. Bajaj has exported double roller gins to Bangladesh, Indonesia, Myanmar, Nepal and Sri Lanka.
Cotton Sector Structure, Ginning Technology and Scale of Operations

The ginning technology and the scale of operations are mostly determined by the variety grown, production and harvesting conditions, and economic factors. The cotton sector structure also influences the choice of the ginning technology. High capacity saw gin plants are better adapted to monopolistic sectors with densely concentrated production, while smaller roller gin plants are better adapted to competitive sectors. The capital cost has been restrictive for the introduction of high-productivity saw gins in countries where production was low and scattered. Conversely, low-productivity roller gins were not adopted in countries where large volumes had to be processed rapidly. Roller ginning was widely considered a primitive technology, labor-intensive, and not suitable for upland varieties. The minimal capital cost of setting up a saw gin is substantially higher for saw gins than for roller gins. The choice between more or less labor-intensive options depends on the availability of labor and its cost relative to energy costs. Roller gins are generally the preserve of smaller companies, although numerous stands can be linked together and the supply of cotton automated.
USA

Production, climatic and economic conditions prevailing in the US imposed the choice of high capacity gins:

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Large scale farms High volume machine-picked in a short period of time, Lack of cheap labour, Availability of capital and energy, Necessity to gin production in less than 100 days due to climatic conditions (frost and rain in winter).

Although machines replaced workers, labor remains the most important variable ginning cost in the USA26. As larger gins have lower costs (Appendix 4), the number of operating gins in the US is continuously declining27. Gins belong to individual farmers, cooperatives or cotton merchants.
Turkey

Gins in Turkey belong to cooperatives and to private ginners. Saw gins were installed by the largest cooperatives to increase their processing capacity.
Developing Countries

Opposite conditions prevail in most developing countries:


India

Smallholder farms, Low volume (handpicked), Availability of cheap labor, Energy non-available or non-affordable, Longer ginning season (dry and frost free).

Established in 1902 to increase cotton production for the United Kingdom, the British Cotton Growers Association (BCGA) promoted the installation of ginneries in the British Empire. In India28 , roller gins were installed in rainfed areas where cotton production was 30 scattered around, while some saw gins were set up in irrigated areas with higher yields. Most of the roller gins were manually operated, with one workman or each stand to feed and stir the cotton. The recent modernization results in a significant increase in the capacity of the Indian ginneries29. The largest plants set up have a capacity of up to 2,700 bales per day30. Ginneries belong to private ginners competing with each other for seed cotton.
ESA Countries

The Indian model with roller gins prevailed in Uganda, Tanzania, and Kenya, as the capital cost of saw ginning was prohibitive for the small volume processed by most ginners.
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Large ginning companies in the monopolistic and concentrated sectors of Zimbabwe and Zambia installed US made saw-gins. Liberalization of the cotton sectors in the 1990s led to a rapid entry of private small-scale roller-gin plants competing with established, large-scale saw-gin plants, also private. Many of the new investors had little or no experience in ginning. Larger ginners (less opportunistic) first invested in saw-ginning in order to be able to capture more volume. More recently, quality-conscious ginners installed automated roller gin plants.
WCA Countries

The Compagnie Franaise pour le Dveloppement des Fibres Textiles (CFDT) was established in 1949 to promote cotton production in the French colonies of Africa. Roller ginning was viewed as impractical and uneconomical, and not suitable for the medium-short staple upland varieties grown (1-1/32 to 1-1/16 inch) at that time. The monopolistic cotton companies adopted the US model and imported US-made saw ginning equipment. The location and capacity of the gins were based on transportation costs (seed cotton collection and lint exports). A typical plant in WCA countries has 3 to 5 high-capacity (158 or 161-saw) gin stands.

Comparative Performance of Roller and Saw Ginning


The objective of this section is to compare, in the context of Sub-Saharan African cotton, the potential performances of saw and roller gins, as concerns investment costs, operating costs and value of production (in relation to quality performances). For the need of the analysis, three types of gin plants have been considered: A ginnery equipped with standard saw gins as operating in most WCA countries, A ginnery equipped with rotary knife roller gin stands a ginnery equipped with double roller gins. The purpose of the analysis is not to assess the total processing costs of those three models, which depend on a number of factors irrelevant to the type of gins used, but to assess specifically the differences in cost and income items which are potentially directly affected by the ginning technology, and identified as follows: Investment cost and ginning capacity, Ginning outturn ratio, Seasonal labor and energy requirements for operating the gins, Maintenance costs of gin stands, Quality premium.
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The analysis is aimed at assessing the comparative advantage or disadvantage and the differential in ginning cost and profitability between comparable ginning plants using saw gin and roller gin technologies. To make the comparison possible, all models are assumed to have the same total capacity (implying that the number of gin stands will differ, depending of the unit ginning stand capacity for each technology). It is also assumed that, beside the gins, all models have the same ancillary equipment (pre-cleaners, conveyors, lint-cleaner and press).

INDIAN cotton industry AT a glance in 2012 - 2013


Indias cotton output is likely to dip by two million bales to 32.3 million in the 2012 -13 year as farmers are likely to switch to better-priced alternative crops amid unclear cotton export policy. But, domestic cotton consumption increased to 26 million bales in 2012-13, from 25.3 million bales in 2011-12. However, Indias exportable cotton supply was only six million bales in 2012-13, as against 11.75 million bales last year, given an expected drop in production and higher domestic demand. If the government increases the minimum support price (MSP) for cotton significantly, planting intentions could shift and there would be a boom for the cotton industry in India. There is some concern within the industry even as productivity has increased from an estimated 300 kg per hectare to 500 kg hectare since the introduction of biotech cotton in India. The increasing prevalence of pests, the need for better fertilizer management, the spread of cotton into dry-land areas and seed quality are all cited as factors affecting yields in the Indian cotton scenario. Given these ongoing challenges, yields are forecast at the five-year average of 500 kg per hectare,but however it is significantly lower than the global average of 740 kg per hectare. It is to be noted that Indias two-thirds of cotton is produced in Maharashtra, Madhya Pradesh, Gujarat and Odisha where much of the crop is rain-fed.

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State wise potential and the existing yield gap (lint in kg/ha)
State S.No Representa-tive genotypes Contribution to state production (%) 1. Punjab F414/F1054, J34/F846 Bengal desi 2. HARYANA H777 ,J34/F846 Bengal desi 3. RAJASTHAN J34/RST-9Bengal desi 4. GUJRAT H6V797/Digvijay 88.00 12.00 71.00 23.00 60.50 39.50 5. MADHYAPR ADESH H6/JKHy-1 1007/ LRA5166/K2 Desi 6. MAHARASH TRA NHH44 LRA 5166 AKH-4/AKA 8401 7. ANDHRAPR ADESH MCU5, JKHyI/H4 MECH 1&11, LK8611L389 LRA 5166 8. KARNATAK A DCH32 NHH44 Jayadhar/Suvodhar 9. TAMILNAD U MCU5, LRA5166 DCH32, TCHB2 48.84 5.56 6.67 12.72 81.81 1200 800 300 1200 1000 150-900 200-1000 23.60 71.91 4.04 800 600 500 400-650 41.38 27.24 22.76 35.36 28.21 18.57 1000 800 1000 800 1000 300 600 500 400 500 400 300 225-350 300-500 150-750 700-775 600-650 90.71 9.21 1200 1000 Potential yield Yield gap across the districts 700-800

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Cotton Ginning In Haryana Year wise area, Average yield and Production of Cotton crop in Haryana
Area (000 Year 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Hect.) 491 505 533 563 556 652 653 632 583 544 555 630 518 526 621 583 530 625 Average yield (Kg / Hect) 400 451 450 339 419 335 392 298 255 408 424 195 340 455 568 437 582 650 Production (in 000 bales (170 kg) 1155 1341 1411 1124 1371 1284 1507 1107 874 1304 1383 722 1038 1407 2075 1499 1814 2390

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District wise Area, Production and Yield for last five years
2007-08 2008-09 2009-10 2010-11 2011-12 District Area Prod. Yield Area Prod. Yield Area Prod. Yield Area Prod. Yield Area Prod. Yield Hissar 143 330 392 142 354 424 153 461 512 147 315 365 130 396 518 Sirsa 166 368 377 163 488 509 199 763 652 193 581 512 191 748 666 Fatehabad 80 170 361 87 266 520 101 424 713 95 302 541 91 373 697 Bhiwani 65 86 225 62 121 332 73 176 410 60 105 297 49 103 357 M.garh 4 5 213 6 18 510 14 29 353 9 10 194 4 8 341 Rewari 2 3 257 4 12 520 8 27 568 6 12 331 3 7 371 Rohtak 14 17 206 11 18 278 13 23 303 13 23 298 9 25 479 Jhajjar 4 4 170 4 10 425 5 7 231 4 7 293 2 5 406 Sonepat 2 3 269 2 2 439 2 7 568 2 4 293 2 4 348 Kaithal 1 2 269 2 5 183 3 10 568 4 8 343 46 137 507 Jind 38 50 224 43 111 425 50 148 504 50 132 448 3 6 444 Total 519 1038 340 526 1405 454 621 2075 568 583 1499 437 530 1814 58

Cotton Market (Haryana)


Cotton is grown mainly in Hisar, Sirsa, Fatehabad, Jind and Bhiwani districts in Haryana. In all, following 33 cotton markets have been established in the State:

Sr. No.

Name of Cotton Market 1 Dabwali 2 Kalanwali 3 Ellenabad 4 Sirsa 5 Fatehabad 6 Hisar 7 Bhiwani 8 Hansi 9 Narwana

Sr. No.

Name of Cotton Market

18 Dharsul 19 Adampur 20 Barwala 21 Narnaund 22 Charkhi Dadri 23 Loharu 24 Jui 25 Tosham 26 Behal 27 Siwani 28 Jind 29 Jullana 30 Safidon 31 Pillukhera 32 Rohtak 33 Meham

10 Uchana 11 Uklana 12 Ding 13 Bhuna 14 Jakhal 15 Ratia 16 Tohana 17 Bhattu Kalan

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Out of these 33 cotton markets, 11 (Sr.No.1 to 11) markets have been upgraded/renovated with the assistance of Technology Mission on Cotton, Ministry of Textiles, Government of India with a cost of Rs.21.91 crores where TMC has given assistance of Rs.11.05 crores. These markets have been equipped with all modern facilities including Farmers' Information Centre, laboratory and latest fire fighting system.

Haryana Market(M andi) Arr201011 Dabwali 11489 Arr201112 184385 Arriva l MT 23367 0 Sirsa 8911.6 119705 14408 1.5 Adampur 39435. 3 Ellanabad 32599. 9 Uchana 16202 48390. 6 Fatehabad 15538. 9 kalanwali 3282.9 43020. 2 33010. 46 Narwana 1653.6 29747 100885 .1 99982 10964 0.1 62333 .9 55665 .1 35100 .8 16018 .11 24825 .7 BhattuKal an Bhuna 14742. 7 12264. 4 Jullana 4618 28673. 4 26333. 85 19987. 3 Uklana 10314. 9 Jind 41082. 4 Ding 2819.9 19151. 9 16709. 2 13482. 6143. 9 18042 .3 22230 .5 4428. American R:4168.77 T:4428.90 74 | P a g e American R:4233.90 T:21365.40 Desi R:4548.75 T:865.10 American R:4102.61 T:18042.30 Other R:4366.12 T:6143.90 23377 .2 0 American R:4448.75 T:23057.70 Desi R:4982.50 T:319.50 American T:871.50 American T:4153.60 American R:4257.03 T:15498.11 Desi R:3500.00 T:275.00 Other R:4270.00 T:245.00 Other R:3907.34 T:24825.70 R:4395.25 T:30947.20 Desi R:4254.13 R:4202.24 T:54793.60 Other R:4115.00 American R:4523.93 T:62333.90 American T:790.00 American R:4432.51 T:109640.10 R:4436.62 T:143291.50 Desi R:4800.00 Other R:4334.96 T:233670.00 In Ref.

5 Kalayat 4020 13013

9 1317. 2 Other R:3895.76 T:1317.20

Tohana Hissar

8418.3 5215.2

9171.8 8935.8 1

167.7 0

Other R:4088.50 T:167.70

Ratia Siwani

5204.3 374.1

7280.3 7013

0 1481. 5 American R:4045.59 T:1461.00 BengalDeshi(A)FIne

R:4015.00 T:8.50 Other R:4042.50 T:12.00 American R:4126.82 T:10353.90

Bhiwani

2697.3

2797.1

10353 .9

Jakhal Tosham Jui

1116.2 0 24.8

1154.9 147.1 110.99

445.1 0 3472. 05

Other R:3564.71 T:445.10

Other R:4290.88 T:3472.05

Rohtak Pillukhera

0 37 0 0

79 75 0 0 0 0 0 0 0 0 0

0 164 0 0 0 28604 0 0 0 0 0 96.20 % this year. Other R:4321.97 T:28604.00 Other R:2068.75 T:164.00

Adampur Barwala Bhuna Ch.Dadri Ding Hansi Meham Total :

0 2833.1 0 146 0 346.28 15133

833241 801563 .51 .46

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Sirsa
General Characteristics of the District
There are a number of legends about the origin of the name of the town. As mentioned earlier, its ancient name was Sairishaka and from that it seems to have been corrupted to Sirsa. According to local tradition, an unknown king named Saras founded the town in 7th century A.D. and built a fort. The material remains of an ancient fort can still be seen in the South-East of the present town. It is about 5 kilometres in circuit. According to another tradition, the name has its origin from the sacred river Sarasvati which one flowed near it. During medieval period, the town was known as Sarsuti. It has been mentioned as Sarsuti by a number of medieval historians. The derivation of name Sirsa, is also attributed to the abundance of siris trees [Albizia lebbock (Benth)] in the neighbourhood of Sirsa which seems quite plausible for it finds some corroboration also in Panini and his commentator. In ancient period, Sirsa was also known as Sirsapattan.

History of the District as an Administrative Unit


Sirsa was in the administrative division of Hisar Feroza during Firuz Shah's reign. In the time of Akbar, Sirsa was one of the dasturs of Hisar Feroza Sarkar and much of its area lying in the present Sirsa district was covered by Mahals of Fatehabad, Bhattu, Bhangiwal (Darba), Sirsa, Bhatner (or Hanumangarh, Rajasthan) and Paniyana (Rajasthan). With the decline of the Mughal Empire, the track comprising Sirsa district came under the control of Marathas. The whole of Delhi Territory of which the tract formed part was ceded by the Marathas to the British in 1810. Sirsa was part of the outlying district of Delhi territory under the charge of an Assistant to the Resident. In 1819, the Delhi territory was divided into three districts - the Central which included Delhi, the Southern including Rewari, and the North-Western including Panipat, Hansi, Hisar, Sirsa and Rohta. In 1820, the latter was again sub-divided into Northern and Western and Sirsa alongwith Hansi, Hisar and Bhiwani formed Western district (Haryana district and later known Hisar district). The Sirsa district which comprised three tehsils of Sirsa, Dabwali and Fazilka was abolished in 1884 and Sirsa tehsil (consisting of 199 Villages) and 126 villages of Dabwali tehsil formed one tahsil and the same was merged in the Hisar district and the rest of the portion was transferred to the Firozpur district (Punjab). There was no change till the Independence of the country except that a village was transferred from Sirsa tahsil to the then state of Bikaner in 1906.The entire area of the district was included in the new state of Haryana on November 1, 1966. In 1968, Sirsa tehsil was bifurcated into Sirsa and Dabwali tehsils. In 1974, three villages of Dabwali tehsil were transferred to Sirsa tehsil.

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On September 1, 1975, Sirsa and Dabwali tehsils were constituted into a separate Sirsa district with headquarters at Sirsa.

Location & Geographical Area


It is bounded by the districts of Faridkot and Bathinda of Punjab in the north and north east, Ganga Nagar district of Rajasthan in the west and south and Hisar district in the east. Thus it touches the interstate boundaries on three sides and is connected with its own state only in the eastern side.

Topology
The district lies between 29 14 and 30 0 north latitude and 74 29 and 75 18 east longitudes, forming the extreme west corner of Haryana. It is bounded by the districts of Faridkot and Bathinda of Punjab in the north and north east, Ganga Nagar district of Rajasthan in the west and south and Hissar district in the east. Thus it touches the interstate boundaries on three sides and is connected with its own state only in the eastern side. The terrain of Sirsa district may be broadly classified from north to south into three major types i.e. Haryana Plain, alluvial bed of Ghaggar or Nali and Sand dune tract. The characteristics of these three are briefly described below Haryana Plain The Haryana Plain is a vast surface of flat to rolling terrain and extends southward to the northern boundary of the alluvial bed of the Ghaggar. It covers over 65 percent of the area of the District. The elevation of the surface from east to west varies from 190 to 210 meters above the mean sea level. The most diagnostic feature of the Haryana Plain is the presence of palaeo channels which set the occurrence of sand dunes in this terrain unit apart from those in the dune tract. The plain is traversed by numerous dune complexes and shifting sands. CLIMATE The climate of this district is characterized by its dryness and extremes of temperature and scanty rainfall. The year may be divided into four seasons. The cold season from November to March is followed by the summer season which lasts up to the end of June. The period from July to about the middle of September and from the middle of September to October constitute the south west monsoon and post-monsoon seasons respectively. RAINFALL Records of rainfall in the district are available for Sirsa only for sufficiently long periods. The average annual rainfall in the district is 32-53 mm. The rainfall in the district increases generally from west to east. About 72 percent of the annual normal rainfall in the district is received during the short south east monsoon period, July to September, July and August being the rainiest months. There is 77 | P a g e

significant amount of rainfall in the month of June, mostly in the form of thunder showers. In the rest of the year, there is a very little rainfall. TEMPERATURE There is no meteorological observatory in the district, so the mean meteorological conditions prevailing at Ganga Nagar and Hisar may be taken as representative of those prevailing in the district as general. There is a rapid increase of temperature after February. The mean daily maximum temperature during May and June which is the hottest period varies from 41.5 C to 46.7 C. On individual days the maximum temperature during the summer season may rise up to about 49 C. With the advance of the Monsoon into the district, by about the end of June, there is appreciably drop in the day temperature and the weather becomes cooler during the day time, but the nights are warmer than those during the summer season. With the added moisture in the monsoon air, the nights are often uncomfortable. The decrease in temperature is rapid after October and drop in temperature after nightfall is particularly trying. January is generally the coldest month with the mean daily maximum at 21.1 C and the mean daily minimum at 5.1 C. AGRICULTURE Sirsa District was created out of South-Western part of District Hisar in the year 1975. Itis surrounded by Punjab, Rajasthan and District Fatehabad of Haryana State. Only a seasonal river Ghaggar is flowing through central part of the district and Bhakra Canal is the only source of irrigation. The climate of the district is of tropical type with intensive hot summer and cool winter with a temperature of 47 Degree Centigrade in June and 3 Degree Centigrade in December and January. The average rainfall of the district is 200 to 300 mm out ofwhich 80% precipitation is received from July to September. 80% of the inhabitants are villagers and their main occupation is Agriculture. The main cropping pattern is two crop system. Paddy, Cotton and Bajra crops are grown in Kharif whereas Wheat, Gram, Barley and Rape-mustard in Rabi season. Cotton and Rabi oilseeds are two main cash crops. Now, some farmers are shifting from the traditional cropping system to Horticulture and Flower culture. Area under garden and flower culture is 1400 and 10 Hectares respectively. The production of green and dry fodder is 20 Lacs and 10 Lacs Tonnes respectively. From agriculture point of view, District Sirsa comprises of three agricultural Subdivisions namely Sirsa, Dabwali and Ellenabad. Total geographical area of the district is 4.27 Lac Hectares which is spread oven in 326 villages. Total cultivable area of the District is 4.3 Lacs Hectares. Agricultural Activities The Agriculture Department is primarily responsible for the dissemination of latest technical knowhow to the farming community and thereby pushing up the technical know-how to the farming 78 | P a g e

community and thereby pushing up the agricultural production in the state. It also ensures timely supply of quality inputs like Seeds, Fertilizers, Pesticides/ Weedicides etc., both through Public and Private sectors. The Department also monitors the potential and utilisation of ground water resources. Soil conservation and better water management are other important activities of the Department. In addition, the Department also performs some regulatory functions relating to marketing and storage of agricultural produce and quality control of agricultural inputs. Integrated Pest Management Programme of Cotton, Paddy, Bajra, Wheat and Gram, and also, biological control of pests and installation of Sprinkler Sets to improve the irrigation efficiency in undulated areas. Apart from these activities, Department of Agriculture also works out fairly reliable estimates of agricultural production in the State.

Administrative set up
Administrative Setup of District Sirsa Deputy Commissioner Additional Deputy Commissioner Superintendent of Police Sub-Divisions (Sirsa, Dabwali, Ellenabad): Tehsils : 1. Dabwali 2. Sirsa (With Kalanwali and Nathusari Chopta as Sub-Tehsils) 3. Rania 4. Ellenabad Community Development Blocks : 1. Baragudha 2. Dabwali 3. Ellenabad 4. Nathusary Chopta 5. Odhan 6. Rania 7. Sirsa

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Towns : 1. Sirsa 2. Dabwali 3. Ellenabad 4. Rania 5. Kalanwali Parliamentary Constituency : 1. Sirsa (SC) Assembly Constituencies : 1. 42-Kalanwali (SC) 2. 43-Dabwali 3. 44-Rania 4. 45-Sirsa 5. 46-Ellenabad

Objectives of Project
List of cotton ginning industries: give the details on number of industries present in sirsa city. Cotton ginning annual production: give details on annual production of each and every industry with risk factors Technology: to give details on technology implemented and used by them so that bank can give up gradation of technology and fund scheme for that. Satisfaction level: to check the satisfaction level of ginners either by services point of view or by governmental schemes point of view. To check the cotton production in district

Scope of Study
Technology Up gradation Fund scheme Credit cash facility Procedure for better agriculture Better Infrastructure schemes.

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Limitation of Study
Secondary data is not available Researches are not made in huge manner Seasonal restriction as production is not continuous for cotton products

Dealers, who offer credit service but dont have adequate knowledge base for suitable
Unstructured system for production. Unwillingness of ginners to share information.

Period of study
This study is made between 1st of June 2013 to 10th of August 2013.

RESEARCH METHODOLOGY

The procedure using, which researchers go about their work of describing, explaining and predicting phenomena, is called Methodology. Methods compromise the procedures used for generating, collecting, and evaluating data. Methods are the ways of obtaining information useful for assessing explanation.

TYPES OF RESEARCH
The type of research used in this project is descriptive in nature. Primary data was collected with the help of structured closed ended questionnaire. Average method The following are the formula: Average of Respondent = No. of Respondent Total no. of Respondent

Data collection method Data was collected using structured Questionnaire. This method is quite popular in case of big enquires. Private individuals, research workers, private and public organizations and even government are adopting it. A questionnaire consists of a number of question involves both specific and general question related to Job Stress in Banking Sector.

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Sources of data
The two sources of data collection are namely primary & secondary. Primary Data Face to face interviews with owners of ginning industries Questionaires Interviews with CA Industries Balance Sheets

Secondary Data: Information from research papers of Haryana corp. Journals of CCI Researches by Krishi Vigyan Centre Internet

RESEARCH DESIGN
1. Sampling of industries based on judgement 2. Sample Element: Industries 3. Sample Size: 100% 4. Sample Test: Average and Standard Deviation 5. Sample Media: Questionnaire 6. Sampling Method: Judgement based 100%

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FEW SAMPLES
Garg cotton &general mills 1 Name of the firm Garg cotton &general mills

Constitution of firm

1973, Partnership

Activity

Cotton ginning & pressing

Key persons

Sh.Guruchar singh Garg Sh.Amarnath Garg Sh. Swami Sharan Garg Sh. Ravi kant Garg

Mobile No.

99696004221

Corporate internet banking

yes

Mobile banking

yes

Address

Ist Industrial area, Dabwali Rania Road Sirsa.

City

Sirsa

10

District

Sirsa

11

State

Haryana

12

Country

India

13

Pin code

125055

14

Email id

gargcottonmills@gmail.com

15

Phone No.

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16

Fax .No.

01666-237888

17

Total Exposure

State Bank of Patiala Limit 8 crores

18

Limit expiry date

19

Interest Rate

11.25% (40 yrs relation)

20

Penal Interest Rate

2%

21.

Turnover

From where do you purchase raw material for the firm ?

Mandi market Dabwali Kalayat Through out Haryana

What is the total cost of firms raw material?

4,750 per quintal (approx.)

What time does it takes to convert raw material to finished goods?

18bales per hour

What is the firms total production in bales?

40-50,000 only

What is your total cost of production?.

285-320 per quintal

What are the firms sources of cash inflows?

State Bank of Patiala

Who are your consumers of finished goods?

Nahar Group of Industries, Ldh Vardhman group of industries

In which countries do you export?

Indirect Export 84 | P a g e

Which product do you target?

Cotton bales, oil seed, Cake oil,

10

What are your market strategies for the promotion of your product?

Direct marketing

11

What are potential risks to your firm?

Fire, price fluctuation& baddebts

Gandhi Cotton and general mills 1 Name of the firm Gandhi Cotton and general mills 2 Constitution of firm 2002, Partnership

Activity

Cotton Ginning & ppressing

Key persons

Sh. Harbhagwan gandhi

Mobile No.

9215300548

Corporate internet banking

no

Mobile banking

yes

Address

Shamshabad patti road 2nd area,sirsa

City

Sirsa

10

District

Sirsa

11

State

Haryana

12

Country

India

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13

Pin code

125055

14

Email id

Ashishgandhi34@gmail.com

15

Phone No.

16

Fax .No.

01666-237548

17

Total Exposure

Oriental bank of commerce Limit- 3 crore.

18

Limit expiry date

19

Interest Rate

11.75% (OBC Bank)

20

Penal Interest Rate

21.

Turnover

40 crores.

From where do you purchase raw material for the firm ?

Shankar lal kashmiri lal Harbhagwan ashok kumar

What is the total cost of firms raw material?

50 crores

What time does it takes to convert raw material to finished goods?

10 bales per hour

What is the firms total production in bales?

20,000 only

What is your total cost of production?.

300 per Bales

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What are the firms sources of cash inflows?

OBC BANK

Who are your consumers of finished goods?

Vardhman group Nahar group ldh

In which countries do you export?

Indirect export Pakistan china

Which product do you target?

Cotton, oil seed, bales

10

What are your market strategies for the promotion of your product?

Direct marketing

11

What are potential risks to your firm?

Fire

Ganga Cotton and Allied Industries 1 Name of the firm Ganga Cotton and Allied Industries

Constitution of firm

1987, Partnership

Activity

Cotton & guar factory

Key persons

Sh.Tarsem chand Bansal

Mobile No.

01666-240699

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Corporate internet banking

yes

Mobile banking

yes

Address

Shamshabad patti road,sirsa

City

Sirsa

10

District

Sirsa

11

State

Haryana

12

Country

India

13

Pin code

125055

14

Email id

gangacotton@gmail.com

15

Phone No.

01666-240699

16

Fax .No.

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17

Total Exposure

12 crores.

18

Limit expiry date

April 14

19

Interest Rate

12.5% (HDFC Bank)

20

Penal Interest Rate

2%

21.

Turnover

2, 25 crores.

From where do you purchase raw material for the firm ?

Local mandi sirsa, & All over India

What is the total cost of firms raw material?

90 crores

What time does it takes to convert raw material to finished goods?

10 bales per hour

What is the firms total production in bales?

60,000 only

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What is your total cost of production?.

350 per Bales

What are the firms sources of cash inflows?

Bank CC limit

Who are your consumers of finished goods?

Ginni International LGW ltd. Ginni fslamer Ltd.

In which countries do you export?

Indirect Export

Which product do you target?

Cotton, cotton seed, Cake oil,

10

What are your market strategies for the promotion of your product?

Through brokers & Direct marketing

11

What are potential risks to your firm?

Fire & bad-debts

Garg cotton &general mills 1 Name of the firm Garg cotton &general mills

Constitution of firm

1973, Partnership

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Activity

Cotton ginning & pressing

Key persons

Sh.Guruchar singh Garg Sh.Amarnath Garg Sh. Swami Sharan Garg Sh. Ravi kant Garg

Mobile No.

99696004221

Corporate internet banking

yes

Mobile banking

yes

Address

Ist Industrial area, Dabwali Rania Road Sirsa.

City

Sirsa

10

District

Sirsa

11

State

Haryana

12

Country

India

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13

Pin code

125055

14

Email id

gargcottonmills@gmail.com

15

Phone No.

16

Fax .No.

01666-237888

17

Total Exposure

State Bank of Patiala Limit 8 crores

18

Limit expiry date

19

Interest Rate

11.25% (40 yrs relation)

20

Penal Interest Rate

2%

21.

Turnover

From where do you purchase raw material for the firm ?

Mandi market Dabwali

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Kalayat Through out Haryana 2 What is the total cost of firms raw material? 4,750 per quintal (approx.)

What time does it takes to convert raw material to finished goods?

18bales per hour

What is the firms total production in bales?

40-50,000 only

What is your total cost of production?.

285-320 per quintal

What are the firms sources of cash inflows?

State Bank of Patiala

Who are your consumers of finished goods?

Nahar Group of Industries, Ldh Vardhman group of industries

In which countries do you export?

Indirect Export

Which product do you target?

Cotton bales, oil seed, Cake oil,

10

What are your market strategies for the promotion of your product?

Direct marketing

11

What are potential risks to your firm?

Fire, price fluctuation& baddebts

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Sirsa Production
Sno 1 2 3 Industry Name Aditya Agro Industries, Indl.Area,Sirsa Aggarwal Cotton & General Mills, Dabwali Rania link Road, Sirsa Amar Cotton Ginning & factory, Shamshabad Patti, Old Ahamdpur Road, Sirsa 4 5 6 Anjani Cotgon, Nohar Road, Ellanabad, Distt. Sirsa. Bharat Cotton Ginning Ind., Ahmedpur Chaudhry Ram Cotton factory, Old Ahamdpur Road, Shamshahbad patti, Sirsa 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Choudhary Ram Cotton Factory, Deepak Cotton Factory, Dabwali Road, Kalanwali Distt. Sirsa Diwakar Cotton Mills, Ellanabad Distt. Sirsa Gandhi Cotton & Gen.Mills, Shamshabad Ganga Cotton and Allied Industries Ganpati Cotton & General Mills, Garg cotton &general mills Hans Raj Babu lal Cotton Haryana Chautala Road, Mandi Dabwali, Distt. Sirsa Jai Hanuman Oil & general Mills, Nohar Road Ellanabad Distt. Sirsa Jyoti Ram Chiranji Lal, Choutala Road, Mandi Dabwali, Distt. Sirsa Maha Laxmi Cotton Mills Pvt. Ltd. Shamshahbad patti, Sirsa Manoj Cotton Oil & General Mills, Near Bus Stand, Kalanwali Distt. Sirsa Neeraj Cotton Ginning Factorie,Village Kharekam, Sirsa Phutella cotton mills R.K. Cotgin & Pressing Industries, Nohar Road, Ellanabad Distt. Sirsa S.R.Ind. Dabwali Road, Kalanwali Sansar Bhushan Satia Cotton Factory,Ellenabad Sat Narain Ram Chander, Mandi Dabwali, Distt. Sirsa Savtri Udhyog, 38 Industrial Area, Distt. Sirsa Shankar Cotgon Industries Sharda Cotton Factory, P.No.1-4 & 25- 28,IIDC,Sirsa Shiv Cotton & general Mills Industrial Area, Rania Road, Sirsa 60000 60000 30000 20000 60000 75000 50000 20000 40000 20000 30000 30000 35000 45000 35000 35000 35000 45000 40000 25000 40000 25000 35000 50000 30000 45000 Production 20000 45000 30000

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30 31 32 33

Shiv Rice Factory, Kalanwali Road, V.Gadrana. Shri Balaji Cotton Ginning & Pressing Factory,Ellenabad. Shri Ganpati Cotton & Gen.Mills, Shubham Cotton Mills, Pvt. Ltd 2.4 Km. Stone Nohar Road, Ellanabad, Distt. Sirsa

25000 30000 25000 40000

34 35 36 37

Super Agro Inds. Vill. Moriwala(Sirsa). Suresh Cotton Oil & general Mills, Railway Road, kalanwali Distt. Sirsa Surja Ram Cotton Ginning Factory, Vishnu Bring Khera Road, Shergarh, Mandi Dabwali, (Sirsa) Total Average Median

90000 60000 20000 40000 1440000 38918.92 30000

100000 90000 80000 70000 Production Annually 60000 50000 40000 30000 20000 10000 0 0 5 10 15 20 25 30 35 40 No Of Industries

Series1 Linear (Series1)

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SWOT Analysis of Cotton Ginning Industries


Strengths
1. Strong cotton base 2. Strong entrepreneurial class 3. Flexibility in production of small order lots 4. Presence of integrated concept to consumer 5. Ability to handle value additions, embellishments, etc 6. Adequate labour supply at relatively competitive wages 7. Good cultural comfort with US and Europe 8. Growing domestic market

Weaknesses
1. Poor work practices resulting in higher labour cost component in many staple garments, in spite of low labour costs 2. Rigid government labour policy and lack of rationalisation of duties in MMF 3. High transaction and power cost 4. Too much emphasis on cotton, synthetic fibre base not equally developed 5. Technological obsolescence and lower efficiencies 6. Lack of strong linkages between raw material supplier and the apparel manufacturer

Opportunities
1. Good political equation with EU and US 2. Improvements in infrastructure and regulations 3. Research and product development 4. Buyers preference for India, after China 5. Understanding buyers need because of language advantage

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Threats
1. Rupee appreciation in last few months 2. Trade blocs and partnerships at the exclusion of India 3. Location disadvantage: long transit time to key markets 4. Pricing pressure, following opening up of quotas 5. Enhanced competition from other countries similarly constrained by quotas

Conclusion
While analysing the various aspects of the Cotton Ginning, it could be concluded that the Sirsa is one of the largest contributor for raw cotton, however, known as cotton belt, but lot of issues faced by sirsa cotton ginners. Most common reason that has been observed in the study is people's bugbear to adapt with the advent of new technology. They have problem with pricing policies, labour rules, and other government implications like power, land taxes etc. government is still trying to facilitate them in a better way like cc limits are present at lower rates as SBI Group providing it at 10.50% with no hidden cost. But the level of satisfaction is still at low level and they are ready to sell their crops in different state markets. The most common market of interest is Punjab as it is nearer to Sirsa and having farmers influencing policies to motivate farmers as well as industrialist.

Recommendations
Improvement for National fibre policy
The National Fibre Policy should be fibre-neutral. The fibre policy should look to accord priority to the cotton fibre value chain in the following order of priority: 1. Farmers 2. Domestic mills 3. Other cotton consuming countries It should enhance production, sustainability and growth of cotton It should target enhanced competitiveness of cotton fibre, as well as ensure most judicious and efficient utilisation of countrys strength for sustainable development

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of all the sub sectors of the cotton economy through backward and forward integration.

Recommendations for enhancing production


The members of the sub-group opined that major interest of the policy for cotton fibre should be enhancing the production of cotton. Augmenting cotton production would not only help India to meet the growing domestic demand but also explore export opportunities. The following recommendations have been made by the members of the sub-group for augmenting cotton production in India: An institutional framework could be created for development of cotton fibre. The institution thus established could provide funding and direction for research in a holistic manner. Improving irrigation facilities and water harnessing was considered imperative for enhancing production and lowering its dependence on monsoon. The area under irrigation could be increased to 60% from its present level of 38% at national level. Further, members opined that drip irrigation system could be adopted for better water management. Drip irrigation system could be adopted in at least of 30-40% of total cotton area. Initiative should be taken to increase awareness among farmers for adoption of rain water harvesting, soil moisture conservation techniques, suitable agronomic practices in order to increase the utilisation of rain water.

Improving Cotton Yield New Practice:


New farming practices could be developed in order to increase the cotton yield. Various programmes could be devised to increase awareness regarding rain water harvesting, soil moisture conservation techniques and suitable agronomic practices among the farmers. Precision farming was considered as important too for enhancing cotton productivity. Emphasis could be given to spread of Precision farming to improve yield per unit area for all areas. Measures could be taken to enhance production and supply of Green manure / FYM / Compost / Vermi-compost in the country to maintain soil productivity at sustainable level. Green manure / FYM / Compost / Vermi-compost production and supply has to
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be taken up at large scale under organised sector so that it become available to all cotton growers. This is must for maintaining soil productivity at sustainable level.

Recommendations for Improving Quality


Use of coloured poly propylene bags: To prevent contamination and also, to facilitate detection of contamination the use of white poly propylene bags for packing fertilisers should be replaced by the use of coloured poly propylene bags. Infrastructure of Cotton: There is a serious need to improve Logistics of Cotton. The Logistics includes conduct of cotton and its upkeep in warehouses and at port. The ware housing should be scientific and IT enabled to develop into dematerialised trading and movement of goods. Pressed cotton also needs to be stationed and warehoused at accessible affordable places. The members of the sub-group recommended that steps could be taken to improve logistics for transporting cotton, so that cotton fibre can be supplied from surplus to deficient areas in a clean manner.

Recommendations for improving infrastructure


There is a serious need to improve the logistics of cotton, which includes conduct of cotton and its upkeep in warehouses and at port. The ware housing should be scientific and IT enabled to develop into dematerialised trading and movement of goods. Pressed cotton also needs to be stationed and warehoused at accessible affordable places. Steps could be taken to improve logistics for transporting cotton, so that cotton fibre can be supplied from surplus to deficient areas in a clean manner.

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References

http://www.lawzonline.com/state-bareacts/haryana/haryana-cotton-ginning-and-pressingfactories-act-1992.htm http://www.indianmirror.com/indian-industries/cotton.html http://www.yarnsandfibers.com/preferredsupplier/reports_fullstory.php?id=518 http://www.indiantextilejournal.com/articles/FAdetails.asp?id=2737 http://www.indiainbusiness.nic.in/economy/economic_snapshot.htm http://www.scribd.com/doc/25485875/India-GDP-Composition-Sector-Wise http://pib.nic.in/archieve/others/2012/mar/d2012031302.pdf http://indiacurrentaffairs.org/what-is-the-contribution-of-textile-industry-in-indias-gdp/ http://www.cottonusasourcing.com/Business/contentEn.cfm?ItemNumber=1880 http://eh.net/encyclopedia/article/phillips.cottongin http://www.fas.usda.gov/cotton/Current/ http://cotcorp.gov.in/current-cotton.aspx?pageid=1 http://www.ecottonindia.com/history.htm http://www.unctad.info/en/Infocomm/Agricultural_Products/Cotton/Market/ Sood Dhruv, Williams Davis, Cotton and Products Update May 2013, USDA foreign agriculture services. http://www.unctad.info/en/Infocomm/Agricultural_Products/Cotton/ http://cotcorp.gov.in/current-cotton.aspx?pageid=4 http://www.cottoninc.com/corporate/Market-Data/MonthlyEconomicLetter/ http://www.cotton.org/pubs/cottoncounts/fieldtofabric/gin.cfm http://www.hsamb.gov.in/cottommarket.htm http://agricoop.nic.in/Agriculture%20contingency%20Plan/Haryana/HAR16-Sirsa-30-062011.pdf http://www.msmedikarnal.gov.in/dps/sirsa.pdf Cotton Statistics at Glance, Published by Directorate of Cotton Development, Mumbai & National Center for Integrated Pest Management, New Delhi
Chaudhry M. Rafiq, HARVESTING AND GINNING OF COTTON IN THE WORLD, Technical Information Section International Cotton Advisory Committee, Washington, D.C. A report on cotton Fibre, Minitry of textile Govt. of India Face to Face Interview with Industry Owners Telephonic

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