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most beautiful cotton fabrics. India thus enjoys the distinction of being the earliest country in the world to domesticate cotton and utilize its fiber for manufacture of fabrics. This affinity has endured through the centuries and today India ranks first in cotton cultivated area and second in production among all cotton producing countries in the world next to China. Cotton is one of the principal crops of the country. It plays a vital role in the country’s economy providing substantial employment and making significant contributions to export earnings. The ratio of the use of cotton to man-made fiber and made-made continuous filament yarn is 60: 40 for Indian textile industry (based on the financial year 2005-06). It engages around 6 million farmers while another about 40 to 50 million people depends on activities relating to cotton cultivation, cotton trade and its processing for their livelihood. It is the principal raw material for the domestic textile industry. India has brought about a quantitative and qualitative transformation in the production of cotton since her independence. Production and productivity of cotton in India have improved significantly during the past six decades. It increased from 2.79 millions of 170kgs each in 1947 to an estimated 310 millions of 170 kgs each in 2008-09. Major Phases of development in India The development of cotton cultivation falls into five distinct phases characterized by expansion of area under cultivation, by intensive cultivation with introduction of high yielding varieties, by steady increase in both area and productivity, by stagnation in area under cultivation, decline in productivity, and production and irrigation coverage at 199697 levels and finally by resurgence of the cotton sector from 2003 04 onwards. At the time of independence, mostly short and medium staple cotton were produced in the country and there were no long and and extra long staple cotton during 1947-48; the same now constitute more than 40% of the production. Today India produces the widest range of cotton capable of spinning for 6s to 120s counts of yarn. The import of cotton particularly of Egyptian and Sudanese long and extra long staple cotton which was a regular phenomenon till 1978-79, now taken place for extra long staple varieties (ELS) and for orders in which yarn importers specify the growth to be use. Not only has that India also emerged as a net exporter of cotton in the mid-1990s and now again from 2005-06.
Cotton from 2002 resulting in higher yields and higher economic benefits to farmers. introduction of improved production and plant protection technologies. Sustained awareness programmes by NGOs like Cotton Association of India’s COTAAP Research foundation. Grater application of IPM technology and effective check on pest and disease infestation Increase in area under irrigation seed. • • • • • • • • . Development of improved varieties and hybrids in the different staple length groups. village adoption programmes. CITI – CDRA etc. transfer of technology and development. Distribution of quality inputs. These are highlighted below: Dedicated efforts in the field of research and technology generation. Government policies such as giving greater thrust to research and development in cotton. Indian cotton has also undergone a qualitative transformation since independence.gradation of Ginning and Pressing Factories undertaken by all the four Mini Missions of the Technology Mission on Cotton (TMC) launched in February. to adopt Best Management Practices in modern agronomic methods and crop management techniques Phenomenal spread of Hybrid and Bt cottons Adoption of scientific and agronomic practices by farmers. 2000 have helped in the aim of addressing issues relating to the increase in overall quantity and quality of cotton. their dissemination by extension functionaries and adoption of farmers are responsible for bringing about the distinct change in cotton scenario to its present stage. encouraging use of quality seeds and pesticides and price support measures have also contributed in no small measure to changing the cotton scenario. support to R & D efforts Commercial cultivation of Bt. improvement of Marketing Infrastructure in Market Yards and Modernization /Up.Quality of Indian Cotton Apart from the giant strides in production and productivity.
2008 an import duty of 10% was in vogue. In terms of area under cotton cultivation. However from 8th July. However. With a view to boost cotton exports from the country. from 8th July. To purchase cotton to fulfill export quotas given to CCI • The above role of the CCI continued under the New Textile Policy of 2000. 2008 the Government of India has removed import duty of 10% along with special countervailing duty on imports of cotton Cotton Corporation of India Ltd. However. To undertake commercial operations only at CCI ‘s own risk. (CCI) The role assigned to the CCI under the Textile Policy of June 1985 was: 1. 2008 the Government of India has withdrawn the duty draw back incentive on cotton exports. Nevertheless CCI purchases cotton even now to under take export of cotton. This is primarily because of lower productivity of around 560 kgs per hectare as against global average of 788 kgs per hectare in 2007. To under take price support operations whenever the market prices of kapas touch the support prices announced by the government of India without any quantitative limit 2. in terms of production. Similarly till 8th July. duty draw back incentive of 1% was in vogue. However. the last stated function is no longer relevant as export of cotton is now free and he Government is releasing no quotas. and 3. Besides the above role CCI has also been designated as the nodal agency for implementation of Mini Missions III and IV of the Technology Mission on Cotton for improvement and Development of Market Yards and Modernization of Ginning and Pressing factories and thereby improving the quality of cotton by reducing contamination of cotton and ensuring better prices to the growers • .India still has a long way to go to catch up with the world average yield. Export /Import At present both cotton exports and imports are under Open General License (OGL). This underscores the need for accelerating our efforts for rapid improvement in productivity.4 million hectares. India accounts for 25% of the global area of around 33.. India accounts for 20% of world production.
etc. Indian cotton has become fully acceptable to the domestic mills as well as international buyers of cotton.3. grade and trash. The target set for Mini Mission IV was the Modernization / upgradation of 1000 Ginning and Pressing factories by the end of 31.TECHNOLOGY MISSION ON COTTON With a view to improve the quality of cotton. Targets for Mini Missions III and IV The target set for MM III is the development and improvement of 250 Market Yards by the end of 31. to improve the processing facilities. Level of contamination has come down and the cotton processed in such modernized factories is mostly free from contaminants. both in terms of cleanliness. Domestic mills are in a position to get quality cotton matching international standards enabling them to compete globally for their finished products. 2009 . increase the income of cotton growers by reducing the cost of cultivation.3. MINISTRY OF AGRICULTURE → → Mini Mission-I (MM I): Cotton Research and Technology generation Mini Mission-II (MM II): Transfer of Technology and Development MINISTRY OF TEXTILES → Mini Mission-III (MM III): Improvement of Marketing Infrastructure in market yards → Mini Mission-IV (MM IV): Modernization/upgradation of G & P factories Initially the Scheme was meant for five years but later on it was extended up March. the Government of India had launched Technology Mission on Cotton (TMC) in February 2000 with four Mini Missions for achieving the above objectives.2009 which has since been accomplished. increase per hectare productivity. • • • .2009 which have also since been accomplished Benefits of MM-III and IV • Quality of processing of cotton under modernized factories have improved considerably.
which was 302 kgs per hectare in 2002-03 has increased significantly over the years and reached 526 kgs per hectare in 2008-09 thereby showing an increase of about 74%. there has been substantial increase in the yield per hectare in the recent years. Integrated Cotton cultivation With a view to improve the quality of cotton through transfer of technology and improved farm practices.73-lakh hectare under cotton cultivation during 2008-09. The same is around 73% of the total acreage of 93.103 cotton farmers.617 hectares in association of 14. Commercial release of Bt seeds Indian cotton farmers have started growing biotech cotton only a few years ago. Due to various efforts by the Ministry of Agriculture and the change in the mindset of the cotton farmers in adopting latest technology.18 lakh hectares as against 63. CCI has been undertaking contract farming since 2002-03. During 200809. Area under Bt cultivation during 2008-09 has increased by around 7% at 68. The yield per hectare. Madhya Pradesh. which has backward linkages with cotton farmers and forward linkages with the ultimate consumers. . Punjab and Haryana. Better infrastructural facilities are available to farmers at market yards for disposal of their produce where there is better transparency in handling of his produce. Andhra Pradesh. The major States where Bt cultivation is taken up in a big way includes Gujarat. the Corporation has taken up contract farming in all major cotton growing States in around 44.• Farmers are indirectly benefited as it results in better price realization due to higher sale prices for traders.383 hectares with around 16. Area under Bt has been rapidly increasing due to increased yields and less production risks. • • • • • • • • • • Progress of Mini Missions III and IV 250 Projects have been sanctioned under MM III out of which 176 have reported completion . the Government of India has been propagating Contract Farming project. Maharashtra.306 cotton farmers as against 40.34 lakh hectares during 2007-08.
165 crores Rs. 100 crores (the total outlay of the plan up 31.1000 Units have been modernized/ upgraded under Mini Mission IV out of which 855 have reported competion Budgetary Provision /Release of funds Funds released during the 9th.00 crores Rs.2009 is Rs. 10th and 11th five year plans are as under :During 9th five year plan During 10th five year plan During 11th five year plan Rs. 55. 241 crores which includes NER) Dues pending are under process in consultation/ approval with the IFW .3.
ostensibly on account of global economic recession and financial meltdown. 2500 per quintal leading to a hike of 48% and 39% over the last year.3 of new crop of seed cotton (kapas) of Fair Average Quality (FAQ) for cotton season 2008-09. Every year before the commencement of the Cotton Season (Oct to Sept). taking into consideration of the recommendation of CACP the Ministry of Agriculture had fixed MSP for two basic varieties of cotton viz. the Government of India fixed MSP for Long Staple and Medium Staple varieties of cotton at Rs.. .1 and long staple length cotton having 2. Till 1984-85. Looking into the cotton situation. owners of ginneries operating as individual business proprietors. 3000/. 2500/. Commission for Agricultural Costs and Prices (CACP) fixes the MSP with a view to give incentives to the cotton farmers of the country. 3000/. Based on the support Price of these two basic varieties of kapas seed.3 to 5. the Ministry of Agriculture based on the recommendations of Advisory Board viz. It started procuring cotton on commercial terms by paying premium over and above the MSP. The support price for medium staple length cotton has been fixed at Rs. CCI conducted significant MSP operations only twice. unlike in leading cotton-growing countries where the seed cotton is processed and then marketed as processed bales. % span length of 24.5% span length of 29. The prices of cotton started dipping from October. 2008.per quintal and for long staple at Rs. It was established in 1970 primarily to conduct the price stabilization functions through the Minimum Support Price (MSP) operations of government of India and to ensure reasonable prices to cotton growers in the country.per quintal and Rs.5 to 4. Subsequently for the cotton year 2008-09. The three marketing agencies involved in cotton trade are (i) private sector comprising traders. CCI was also declared as one of the canalizing agency for export of cotton and it exported most of the cotton from India.Price Support Mechanism Cotton is primarily marketed mostly in the form of kapas (seed cotton) in India. the government of India made cotton imports duty free and also removed the incentive of duty drawback of 1% on cotton exports from the country. During the decade followed by 1984-85.per quintal. From 1985-86 onwards its MSP functions got reduced considerably on account of favorable market prices of cotton.5 to 30. Medium Staple length cotton having 2. MSPs for other varieties were also announced by the Office of the Textile Commissioner based on normal market price differentials and . the CCI conducted only MSP operations.5 mm to 25 mm with micornnaire value of 4.5 mm with micronnaire of 3. The CCI a PSU under the Ministry of Textiles is the sole Public sector organization involved in procurement and trading of cotton.5. Accordingly. partnership firms and private limited companies (ii) public sector agencies like the Cotton Corporation of India (CCI) and (iii) Co-operative Sector. the MSP for other classes is fixed by the Textile Commissioner.
Another Note has been placed before the Cabinet for providing the balance requirement of Rs.technical parameters. ………………… . As a result Government nominated agencies namely the Cotton Corporation of India and NAFED have to procure Kapas from the farmers at the extant MSP. 500 crores by way of RE in financial year 2008-09 to meet the anticipated losses and also for the direction to CCI to dispose of cotton procured by MSP rate by offering discounts for bulk purchases. The Cabinet in its meeting held on 5th February approved for the provision of additional Rs. 1473 crores to meet the losses incurred during the cotton season 2008-09.