Improvement Driven by Biotech, Ginners and Government
February 10, 2011 India has the distinction of growing all classes of cotton, from the coarsest and shortest fiber to the longest and finest, and has the world’s largest area under cultivation. As of 2009/10, India is the second-largest cotton producer and consumer, and its textile industry is also among the world’s largest, accounting for 14.4 percent of the country’s export earnings in 2008.
During last two decades there has been phenomenal growth in the sector’s installed capacity. The growth and modernization of the textile industry has led to substantial growth in cotton consumption.
India is the second-largest exporter of cotton behind the United States and its major export destinations include Bangladesh, Pakistan, China and other Far East countries.
India’s imports reached 520,000 tons in 2001/02, then dropped in following years due to major increases in domestic cotton production. However, in July 2008, the Indian government abolished the duty on cotton imports, which subsequently rose to 130,000 tons in 2008/09.
The cotton planting period is from March to September, while the harvesting takes place from October to February. There are three main cotton-producing zones in India:
• the Northern Zone (Hirsutum and Arboreum Zones), comprising Punjab, Haryana and Rajasthan;
• the Central Zone (Hirsutum, Arboreum, Herbaceum and Hybrid Zones), comprising Maharashtra, Madhya Pradesh and Gujarat; and
• the Southern Zone (Hirsutum, Arboreum, Herbaceum, Barbadense and Hybrid Zones), comprising Andhra Pradesh, Karnataka and Tamil Nadu.
About 70 percent of total cotton production takes place in Gujarat, Maharashtra and Andhra Pradesh. The Northern Region produces short- and medium-staple cotton, the Southern Region normally produces long-staple cotton, and the Central Region produces both medium and long staples. The peak marketing season for the crop is November to March.
| INDIA’S COTTON BALANCE SHEET* (In millions of 170 kg bales) |
|||
| 2010/11 (Oct-Sept) |
2011/12 (Oct-Sept) |
2012/13 (Oct-Sept) |
|
| Opening Stock | 8.86 (actual) | 9.05 | 9.71 |
| Crop | 33.50 | 35.50 | 37.60 |
| Import | 0.78 | 0.78 | 0.78 |
| TOTAL SUPPLY | 43.14 | 45.33 | 48.09 |
| Mill Consumption | 24.51 | 27.31 | 27.99 |
| S.S.I. Consumption | 2.45 | 2.73 | 2.79 |
| Non-mill Consumption | 2.00 | 2.20 | 2.38 |
| Export | 7.38 | 6.80 | 6.50 |
| TOTAL DEMAND | 36.34 | 39.04 | 39.66 |
| CLOSING STOCK | 6.80 | 6.29 | 8.43 |
| *Estimates provided by India’s Cotton Advisory Board. | |||
The government’s cotton policy
Indian officials have been actively participating in the growth of the cotton industry. Government agencies such as the Cotton Corporation of India and state marketing federations, committees and institutions such as the Genetic Engineering Approval Committee and the Central Institute of Cotton Research, all play an active role in the industry’s development.
The Indian cotton cultivation sector has not only been increasing its productivity, but also undergoing a drastic improvement in terms of quality. The cultivation of hybrids, Bt cotton varieties, the adoption of scientific and agronomic practices by farmers, and an increase in area under irrigation are just a few of the reasons for the dramatic improvements.
But India still has a long way to go before it catches up with the world’s 2009/10 average yield of 735 kg per hectare; India’s yield is currently 230 kg per hectare below that figure.
The future of cotton in India is very bright. Production is sure to increase due to higher demand, better prices and government support. Ginning technology has improved at preserving natural fiber parameters, which helps to reduce the cost of production. Higher profits from ginning means higher pay for farmers, thus encouraging them to grow more cotton. As a result, acreage should increase in 2011/12 as well as 2012/13.
Presently, biotech cotton is available in India as bollworm-resistant Bt cotton with three genes: cry1AC, cry2AB and cry1C. Biotech cotton varieties with cry1F and vip3 genes, as well as herbicide-resistant varieties with Roundup-Ready-Flex technology, are currently under regulatory testing and should be available soon. Crop production technologies have been developed to reduce the cost of production, harvest rainwater and optimize input resources. Precision-grading methods and better marketing facilities also have been developed as part of India’s cotton initiative. The market yards have been completely modernized and ginning and pressing technologies have been vastly improved.
Ginning as a competitive advantage
Double roller gins offer significant advantages, enabling ginners to optimize fiber parameters and generate higher profits, thereby strengthening their position in a competitive market.
The capital cost and per-unit production cost in Indian factories using double roller ginning technology is very low because the same machine is used to gin all varieties of cotton–short, medium, long and extra long–with minimal adjustments. Saw gins are used for short and medium staple cotton and rotobar for long staple, hence requiring different setup for different varieties. Double roller gins offer increased flexibility and provide a competitive advantage for Indian ginners.
Awareness campaigns are being conducted regularly by extension agencies to educate farmers and the general public on the potential benefits and safety issues of genetically modified cotton. It has become very clear that the new bio-technologies will create a second revolution for India’s cotton production.
The prevailing high prices, availability of arable land, efficient ginning technologies and increased productivity per hectare are just a few of the reasons that the outlook for the cotton industry in India is so positive.
GET THE NEWSLETTER TODAY!
