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Thread: Ministry of Textiles - Cotton Sector

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    Thumbs up Ministry of Textiles - Cotton Sector

    Ministry of Textiles



    Cotton in India

    Since time immemorial India has been the producer of cotton and the finest and most beautiful cotton fabrics. India thus enjoys the distinction of being the earliest country in the world to domesticate cotton and utilize its fiber for manufacture of fabrics. This affinity has endured through the centuries and today India ranks first in cotton cultivated area and second in production among all cotton producing countries in the world next to China.

    Cotton is one of the principal crops of the country. It plays a vital role in the country’s economy providing substantial employment and making significant contributions to export earnings. The ratio of the use of cotton to man-made fiber and made-made continuous filament yarn is 60: 40 for Indian textile industry (based on the financial year 2005-06). It engages around 6 million farmers while another about 40 to 50 million people depends on activities relating to cotton cultivation, cotton trade and its processing for their livelihood. It is the principal raw material for the domestic textile industry.

    India has brought about a quantitative and qualitative transformation in the production of cotton since her independence. Production and productivity of cotton in India have improved significantly during the past six decades. It increased from 2.79 millions of 170kgs each in 1947 to an estimated 310 millions of 170 kgs each in 2008-09.

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    Thumbs up Cotton Sector - Major Phases of development in India.

    Cotton Sector


    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 1996- 97 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.

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    Thumbs up Cotton Sector - Quality of Indian Cotton.

    Cotton Sector

    Quality of Indian Cotton

    Apart from the giant strides in production and productivity, Indian cotton has also undergone a qualitative transformation since independence. Development of improved varieties and hybrids in the different staple length groups, introduction of improved production and plant protection technologies, their dissemination by extension functionaries and adoption of farmers are responsible for bringing about the distinct change in cotton scenario to its present stage. Government policies such as giving greater thrust to research and development in cotton, encouraging use of quality seeds and pesticides and price support measures have also contributed in no small measure to changing the cotton scenario. These are highlighted below:

    • Dedicated efforts in the field of research and technology generation, transfer of technology and development, improvement of Marketing Infrastructure in Market Yards and Modernization /Up- gradation of Ginning and Pressing Factories undertaken by all the four Mini Missions of the Technology Mission on Cotton (TMC) launched in February, 2000 have helped in the aim of addressing issues relating to the increase in overall quantity and quality of cotton.

    • Sustained awareness programmes by NGOs like Cotton Association of India’s COTAAP Research foundation, CITI – CDRA etc. 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.

    • Distribution of quality inputs, village adoption programmes, support to R & D efforts

    • Commercial cultivation of Bt. Cotton from 2002 resulting in higher yields and higher economic benefits to farmers.

    • Grater application of IPM technology and effective check on pest and disease infestation

    • Increase in area under irrigation seed.

    India still has a long way to go to catch up with the world average yield. In terms of area under cotton cultivation, India accounts for 25% of the global area of around 33.4 million hectares. However, in terms of production, India accounts for 20% of world production. This is primarily because of lower productivity of around 560 kgs per hectare as against global average of 788 kgs per hectare in 2007. This underscores the need for accelerating our efforts for rapid improvement in productivity.

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    Thumbs up Cotton Sector - Export /Import.

    Cotton Sector

    Export /Import

    At present both cotton exports and imports are under Open General License (OGL). With a view to boost cotton exports from the country, duty draw back incentive of 1% was in vogue. However from 8th July, 2008 the Government of India has withdrawn the duty draw back incentive on cotton exports. Similarly till 8th July, 2008 an import duty of 10% was in vogue.However, from 8th July, 2008 the Government of India has removed import duty of 10% along with special countervailing duty on imports of cotton.

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    Thumbs up Cotton Sector - Cotton Corporation of India Ltd.(CCI).

    Cotton Sector


    Cotton Corporation of India Ltd., (CCI)

    The role assigned to the CCI under the Textile Policy of June 1985 was:

    1. 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. To undertake commercial operations only at CCI ‘s own risk; and
    3. To purchase cotton to fulfill export quotas given to CCI

    • The above role of the CCI continued under the New Textile Policy of 2000. However, the last stated function is no longer relevant as export of cotton is now free and he Government is releasing no quotas. Nevertheless CCI purchases cotton even now to under take export of cotton.

    • Besides the above role CCI has also been designated as the nodal agency for implementation of Mini Missions III and IV of the Technology Mission on Cotton for improvement and Development of Market Yards and Modernization of Ginning and Pressing factories and thereby improving the quality of cotton by reducing contamination of cotton and ensuring better prices to the growers.

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    Thumbs up Cotton Sector - Technology Mission On Cotton.

    Cotton Sector


    TECHNOLOGY MISSION ON COTTON

    With a view to improve the quality of cotton, increase per hectare productivity, increase the income of cotton growers by reducing the cost of cultivation, to improve the processing facilities, etc. the Government of India had launched Technology Mission on Cotton (TMC) in February 2000 with four Mini Missions for achieving the above objectives.

    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, 2009.

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    Thumbs up Cotton Sector - Targets for Mini Missions III and IV.

    Cotton Sector


    Targets for Mini Missions III and IV

    The target set for MM III is the development and improvement of 250 Market Yards by the end of 31.3.2009 which has since been accomplished.

    The target set for Mini Mission IV was the Modernization / upgradation of 1000 Ginning and Pressing factories by the end of 31.3.2009 which have also since been accomplished.

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    Thumbs up Cotton Sector - Benefits of MM-III and IV.

    Cotton Sector


    Benefits of MM-III and IV

    • Quality of processing of cotton under modernized factories have improved considerably, both in terms of cleanliness, grade and trash.
    • Level of contamination has come down and the cotton processed in such modernized factories is mostly free from contaminants.
    • Indian cotton has become fully acceptable to the domestic mills as well as international buyers of cotton.
    • Domestic mills are in a position to get quality cotton matching international standards enabling them to compete globally for their finished products.
    • Farmers are indirectly benefited as it results in better price realization due to higher sale prices for traders.
    • 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.

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    Thumbs up Cotton Sector - Commercial release of Bt seeds.

    Cotton Sector


    Commercial release of Bt seeds

    • Indian cotton farmers have started growing biotech cotton only a few years ago. Area under Bt has been rapidly increasing due to increased yields and less production risks.

    • Area under Bt cultivation during 2008-09 has increased by around 7% at 68.18 lakh hectares as against 63.34 lakh hectares during 2007-08. The same is around 73% of the total acreage of 93.73-lakh hectare under cotton cultivation during 2008-09.

    • The major States where Bt cultivation is taken up in a big way includes Gujarat, Maharashtra, Andhra Pradesh, Madhya Pradesh, Punjab and Haryana.

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    Thumbs up Cotton Sector - Integrated Cotton cultivation.

    Cotton Sector


    Integrated Cotton cultivation

    • With a view to improve the quality of cotton through transfer of technology and improved farm practices, the Government of India has been propagating Contract Farming project, which has backward linkages with cotton farmers and forward linkages with the ultimate consumers.

    • CCI has been undertaking contract farming since 2002-03. During 2008-09, the Corporation has taken up contract farming in all major cotton growing States in around 44,617 hectares in association of 14,306 cotton farmers as against 40,383 hectares with around 16,103 cotton farmers.

    • Due to various efforts by the Ministry of Agriculture and the change in the mindset of the cotton farmers in adopting latest technology, there has been substantial increase in the yield per hectare in the recent years.

    • The yield per hectare, 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%.

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