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Cotton
1.
Introduction
In general, the conditions required for the cultivation of cotton are met within the seasonally dry tropics and subtropics in the Northern and Southern hemispheres, but a large proportion of the cotton grown today is cultivated in areas with less rainfall that obtain the water from irrigation. India was the first country in the world to commercialize cotton hybrids. The leading exporters of cotton are USA, Uzbekistan, India, Brazil and Burkina Faso.
World Scenario
The largest producers of cotton in the world are China, India, USA, Pakistan, Uzbekistan, Brazil and Australia.During the year, 2006-07, total world production of cotton is 26,640 thousand tons. Largest producer of cotton is China, followed by India and U.S.A. (Table 17.1)
Table 17.1: Showing area, production and productivity of major cotton growing countries (2006- 07)
COUNTRY
AREA ('000 ha)
PRODUCTION ('000 tons)
PRODUCTIVITY (tons/ha)
China
5,740.0
7,180.0
1.2
India
9,160.0
4,760.0
0.5
USA
5,150.0
4,700.0
0.9
Pakistan
3,080.0
2,090.0
0.6
Uzbekistan
1,430.0
1,170.0
0.8
Brazil
1,090.0
1,520.0
1.3
Australia
0.0140
270.0
1.9
World
34,410.0
26,640.0
0.7
Source: Indian Cotton -A Profile 2007-2008, The Cotton Corporation of India Ltd.
Indian scenario
The production of cotton lint in India is increasing at a steady pace from 3043 thousand tons in 2003-04 to 4760 thousand tons in 2006-07; this year production is expected to be 5270 thousand tons. Area under the cotton cultivation has shown a similar trend. The productivity is increasing rapidly, it was 0.39 tons/ha in 2003-04 and it is expected to be 0.55 tons/ha in 2007-08. The table below shows the details.
Table 17.2: Showing area, production and productivity of cotton lint in India
YEAR
AREA (in 000’ha)
PRODUCTION (in 000’tons)
PRODUCTIVITY (tons/ha)
2003-04
7630
3043
0.39
2004-05
8786
4131
0.47
2005-06
8677
4148
0.47
2006-07
9142
4760
0.52
2007-08
9530
5270
0.55
Source: http://www.cotcorp.gov.in/statistics.asp
2.
Major producing states
Gujarat is the leading producer of cotton in India followed by Maharashtra, Andhra Pradesh, Punjab, Madhya Pradesh, and Haryana etc. Highest productivity is also reported from Gujarat followed by Tamil Nadu, Andhra Pradesh, and Punjab etc. The details are given below in table 17.3.
Table 17.3: Showing area, production and productivity of leading cotton lint growing states in India
STATES
AREA (000’ha)
PRODUCTION (000’ tons)
PRODUCTIVITY (tons/ha)
2005-06
2006-07
2007-08
2005-06
2006-07
2007-08
2005-06
2006-07
2007-08
Gujarat
1906
2390
2516
1513
1717
1870
0.79
0.71
0.74
Maharashtra
2875
3070
3191
612
884
1020
0.21
0.28
0.32
Andhra
Pradesh
1033
972
1096
510
595
731
0.52
0.61
0.66
Punjab
557
607
648
357
442
408
0.61
0.72
0.63
Madhya
Pradesh
620
639
662
306
306
357
0.49
0.47
0.53
Haryana
583
530
478
238
272
272
0.37
0.51
0.56
Rajasthan
471
350
368
187
136
153
0.39
0.38
0.41
Karnataka
413
375
371
110.5
102
136
0.26
0.27
0.36
Tamil Nadu
140
122
123
93.5
85
85
0.66
0.69
0.69
Others
79
087
77
17
17
34
0.21
0.19
0.44
Total
-
-
-
3944
4556
5066
-
-
-
Loose lint
-
-
-
204
204
204
-
-
-
Grand total
8677
9142
9530
4148
4760
5270
-
-
-
Source: Cotton Advisory Board, http://www.cotcorp.gov.in/statistics.asp
3.Commercial cotton varieties
 
Following are the important commercial varieties of cotton including some hybrids:
F-414/H-777/J-34 Raj
F-414/H-777/J-34 Hybrid Rajasthan
F-414/H-777/J-34 Hybrid (Haryana)
F-414/H-777/J-34 Hybrid (Punjab)
SHANKAR 6/10 (SAU)
SHANKAR 6/10 (Guj)
Suvin
Description of some of the pedigree varieties is given below in table 17.4
Description of some of the pedigree varieties is given below in table 17.4
Variety
Description
J34 SG
It is a selection from non descriptive hirustum mixtures. Re-selection from Bikaneri Narma. It is sown in the months of April/May and the crop is ready for picking by October/December.. J34RG and SG are grown in the states of Punjab, Haryana and Rajasthan and total production per annum is around 2.6 million bales of each of 170 Kg.
LRA-5166
LRA 5166 is derived from a three variety cross involving Laxmi Cotton.Reba B-50 from Central Africa and AC-122.. It is sown in the month of June/July and the crop is ready for picking by December/January. Principally this variety is grown in Maharashtra, Madhya Pradesh, Andhra Pradesh, Karnataka and Tamil Nadu. Total production is 1.6 million tons.
MECH-1
It is an intra hirustum hybrid between Female C-4 X Male C-549. It is sown in the month of June/July and the crop is ready for picking by November/January. This type of cotton is mainly grown in the states of Madhya Pradesh and Maharashtra. Quantity of yield is about 1.7 million bales of 170 Kg each.
HYBRID -4
It is a cross between Guj.67(G.hir.) x American nectariless(G.hirs.). Its duration is June/July to November/February. It is grown in the states of Gujarat, Madhya Pradesh, Maharashtra and Andhra Pradesh under irrigated and assured rainfall conditions. It is generally cultivated in well drained black, sandy, loam soil. This variety matures about 5-6 weeks early as compared to other standard Gujarat cottons. It has continuous production of flushes of flowers and bolls. It is estimated that production of Hybrid-4 may be around 13 lakh bales of 170 Kg each. If the entire country is taken into consideration. Thus it easily meets the internal demand and export needs as well. Innumerable inquiries are being made by European countries and Japan fort his cotton variety.
SHANKAR-6
It is a cross between G.Dot.100(G.hirs.) x G.Cot.10(G.hirs.). It is sown in the month of June-July and is ready for picking in November and may extend upto February. It is cultivated in an area of 4.4 million Acres in the state of Gujarat.
SHANKAR-4
It is a cross between G.cot.1009G.hir) x G.cot.10(G.hir.) the crop is generally
sown in the month of June-July, the first flowers appear in 60-75 days after sowing and the balls appear within 190-210 days after sowing . The crop is
ready for harvest by November and may extend upto February. The plant grows to a height of 120-150 cm. It is susceptible to bollworms and mildly
susceptible to prodenia and mites. This variety is spreading fast on account of its high demand in the market. Now it is the major variety of cotton in the
whole of Gujarat and in Maharashtra also in an appreciable area adjoining to Gujarat this cotton is grown. This hybrid cotton has fiber characters similar to that of Hybrid 4 and is early by about 2 weeks. It is in great demand by the textile industry in India, Europe and Japan.
MCU-5
Developed from crosses involving Sea Island, 542, MCU1, MCU2 and Gatooma. It is sown in the months of mid-August to mid-September and bolls
are ready for picking by February and may go on upto April. This variety is grown in the states of Andhra Pradesh, Tamil Nadu, Orissa and Maharashtra.
Total production is about 5 lakh bales.
Bunny/
Brahma
This hybrid cotton was developed by a private company Naziveedu seeds limited in A.P. under brand name ‘SUBEEJ’ successfully. It can withstand
extreme climates like drought and excess rains. This is a new variety of cotton grown in the states of Maharashtra, Andhra Pradesh, Karnataka and Madhya Pradesh with a total annual production of 3.5 million bales. It is suitable for counts up to 40s and for weaving enduses as the yarn made out of this variety gives good strength.
DCH-32
It is an interspecific hybrid developed by crossing DS 58 (G.hirsutum) X SB 425 YF(G.Barbadense). It is sown in the month of July-August and the crop is
ready for picking by January to March. It is grows in the states of Karnataka, Tamilnadu and Madhya Pradesh. Production of this variety is 1.5 lakh bales.
Suvin
A selection from a cross between Sujata and Sea Island St.Vincent. It is sown in the month of August-September and comes to harvest by February or March. Suvin is the most superior cotton grown in India and is comparable to Egyptian Giza 45 and Sudan VS cotton.It easily spins 120s count.The attractive feature of this variety is that its fibre characters remain uniform the first picking to the last picking. With the release of Suvin, imports of Egyptian Cottons were completely done away with.
4.
Good Agricultural Practices (GAP)
Adoption of improved varieties.
Integrated water and nutrient management.
Integrated pest and disease management
5.
Harvesting season
The harvesting season of cotton in leading states is shown in the graph below:   - Month of harvesting
 
STATES
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Gujarat
Maharashtra
Andhra
Pradesh
Punjab
Madhya
Pradesh
Haryana
Rajasthan
Karnataka
Tamil Nadu
Source: Indian Cotton -A Profile 2005-2006, The Cotton Corporation of India Ltd.
6.
Arrival pattern
The cotton arrives in the market in the period of September – April. However cotton from Tamil Nadu arrives market in the months of June- July also.
7.
Concentrated pockets
The detail of concentrated pockets of cotton in leading states is listed below in table 17.5.
Table 17.5: showing concentrated pockets of cotton in leading states
States
Concentrated pocket
Gujarat
Kutchh, Banskantha, Patan, Sabarkantha, Mehsana, Ganganagar, Ahemdabad, Surendranagar, Kheda, rajkot, Jamnagar, Porbandar, Junagarh, Amreli,
Bhavnagar, Godhra, Dahod, vadodara, Bharuch, Narmada, Surat
Maharashtra
Nandurbar, Dhule, Jalgaon, Buldhana, Aurangabad, Jalna, Parbhani, Amravati, Wardha, Nagpur, Yavatmal, Akola, Hingoli, Nanded, Beed,
Ahmednagar, Pune, Satara
Andhra Pradesh
Echoda, Nirmal, Bhainsa, Asifabad, Bela, Pedapalli, Parkal, Warangal, Dachefalle, Sattenapalle, Amravathi, Madnor, Narsaraoped, Guntur,
Ganpawarm, Krishna, Parachuru, Chilkalurpet, Medarmetla, Ongole, Nellore, Tadpatri, Guntkal, Adoni, Nandyal
Punjab
Bhatinda, Faridkot, jagraon, Ahmadnagar, kotkapura, Fazilka, Muktasar, Dhuri, Nabha, Branala, jaitu, Malout, Abohar, Gidderbaha, Goniana, Sangata,
Raman, rampuraphul, Tapa, Bhuchu, Buldhlada, Bareta, Sardulgarh
Madhya Pradesh
Ratlam, Badnwar, Manavar, Kukshi, Dhar, Anjad, Dhamnod, barwah, Bhikangaon, Khargone, sendhwa, Sanawad, Khandwa, Burhanpur, Tukaithad,
Khategaon, Harda, Sirsali, Khirkiya, Sausar, Pandurna
Haryana
Danwali, Kalanwali, Sirsa, Ratia, Fatehabad, Adampur, Hissar, Bhuna, Hansi, Bhiwani, Tohana, Ukalana, Kaithal, Narwana, Jind, Sonipat, Rohtak, Jhajjar,
Rewari, Monindergarh,
Rajasthan
Kesrisinghpur, Sri Karanpur, Gajsinghpur, Rahsinghnagar, Anoopgarh, Gharsana, Rawla, Khajuwala, Sri Ganganagar, Sadulshar, Sangaria,
Hanumangarh, rawatsar, Bhadra, Khertal, Naugaon, Merta, Beawar, Bijaynagar, Kekri, Bhilwara, Asind, Banswara
Karnataka
Bijapur, Bagalkot, raichur, belgaum, Dharwad, NAval Gund, Gadag, Bellery, Haveri, Chitradurga, Shimoga, Arsikere, Mysore
Tamil Nadu
Villupuram, Panruti, Attur, Thanjaur, salem, Erode, Perundurai, Kangayam, Dharapuram, Tirupur, Coimbatore, Udalmpet, Dindigul, Madurai, Sattur,
Kovilpatti, Triunelveli
8.
Criteria and description of grades
Agmark standards of cotton lint, is given below:
Table 17.6: Grade designation and definition of quality of cotton lint
Grade Definition
Definition of quality
Agmark certifiedpedigreed
(Red label)
Special characteristics
General
characteristics
Shall be the product derived from kapas (cotton seed) variety approved for Agmarking, grown on a Government farm or by a registered seed grower licensed by the appropriate Government Department or by any other agency to be recognized by the Agricultural Marketing Adviser to the Government of India for the purpose and which had been derived from pure seed supplied by a Government department or by any other agency to be resigned by the agricultural marketing adviser to the government of India for the purpose and crop of which shall have been inspected and recognized wherever necessary and duly certified by the appropriate Government Department or by any other agency to be recognized by the Agricultural Marketing Adviser to the Government of India, for the purpose as being at least 98% pure: and b) Shall have been ginned and pressed under directsupervision of the appropriate Government Department
or by any other agency to be recognized by the
a) shall consist of lint ( in full pressed bales) obtained by machine ginning of the kapas:- b) shall be clean and reasonably free from leaf, seed, stain or other imperfections; c) shall be dry and free from a trace added oisture.
Agricultural Marketing Adviser to the Government of India for the purpose.
Agmark Certified (Black Label)
Shall be the product derived from kapas ( cotton seed) variety approved for Agmarking, grown on a Government farm or by a registered seed grower licensed by the appropriate Government Department or by any other agency to be recognized by the Agricultural Marketing Adviser to the Government of India for the purpose and which had been derived from pure seed supplied by a Government department or by any other agency to be resigned by the agricultural marketing adviser to the government of India for the purpose and crop of which shall have been inspected and recognized wherever necessary and duly certified by the appropriate Government Department or by any other agency to be recognized by the Agricultural Marketing Adviser to the Government of India, for the purpose as being at least 98% pure: and b) Shall have been ginned and pressed under direct supervision of the appropriate Government Department or by any other agency to be recognized by the Agricultural Marketing Adviser to the Government of India for the purpose.
a) shall consist of lint ( in full pressed bales) obtained by machine ginning of the kapas:-
b) shall be clean and reasonably
free from leaf, seed, stain or other
imperfections; c) shall be dry and
free from a trace added moistu
9.
Packaging and its details
Cotton lint is packed in bales of 170 Kg.
10.
Price Graph of cotton
*The above graph showing the price (in Rs/Qtl) of cotton in major state
11.
Export and export potential
A. Domestic strengths for export of cotton lint
Domestic strengths for export of cotton from India are as follows:
India produces sizeable quantity of cotton next only to China and USA
India has bred a number of useful hybrids and superior varieties, apart from Bt cotton varieties for cultivation and have been made available to farmers for cultivation.
There is a strong research support for cotton cultivation, as Central Institute of Cotton Research is located in Maharashtra and also State Agricultural Universities.
Government of India in collaboration with Cotton Corporation of India has launched Technology Mission on cotton with a view to increase total production of cotton, by increasing productivity by better varieties and bringing more area under irrigation. As a result a number of Mini Missions were taken up to increase production.
India has also embarked upon Mini Mission IVwith a view to improve the quantity of lint by installing more modern ginning machines in cotton factories.
B. Export
India’s export of cotton was insignificant up to 2004-05 and increased only during 2005-06 and 2006-07. Cotton export from India increased from 13,306 tons in 2002-03 to 1,001,718 tons in 2006- 07(Table 17.6 & Fig. 44).
Table 17. 6: Export of cotton lint from India
Year
Quantity(tons)
Value(Rs. Lakh)
2002-2003
13306
6058
2003-2004
201372
88114
2004-2005
160600
70237
2005-2006
776632
384038
2006-2007
1001718
535109
Source: The Cotton Corporation of India Ltd.
C. Export potential
Export potential of cotton is discussed region / areas wise in the following paras:
(i) ASEAN countries
 
ASEAN countries imported 1,059,967 tons during 2006. There is a decrease of 3% in demand over 2003. The largest importers in ASEAN countries are Indonesia (4,63,205 tons), Thailand (4,22,042 tons) and Vietnam (1,19,021 tons).India’s exports to these countries are approx 12% of their requirements, exporting 50,534 tons to Indonesia, 44,478 tons to Thailand and 33,670 tons to Vietnam and negligible quantities to Philippines and Malaysia. Main competition for India for export of cotton is from Australia and U.S.A. India is nearer to these countries from location point of view compared to U.S.A. India is supplying at much lower prices compared to U.S.A and Australia but still, India is not able to corner more than 12% share of imports.India needs to strive for higher productivity and lower cost of production on one hand and improve quality on the other for enhancing exports to these countries.
(ii) Korea
 
Republic of Korea imported 216268 tons of cotton during 2006; however India exported 6999 tons of cotton during 2006. The other exporters were U.S.A (83,944 tons), Australia (53,458 tons) and Brazil (40,091 tons).Inspite of the fact that India is supplying cotton at much competitive prices over U.S.A and Australia and India is also nearer to Korea location wise compared to U.S.A and Brazil, then even India’s export is very less. India should make sincere
efforts for getting a larger share of Korea’s imports of cotton.
(iii) China
 
China imported 3,641,417 tons of cotton during 2006 whereas India exported only 465388 tons of cotton during 2006. The major competition is from U.S.A, Uzbekistan and Australia. U.S.A is the largest exporter to China and India is second largest exporter.India location wise is
closer to China and should have larger share in imports of China by becoming more competitive and offering better quality cotton.
(iv) Japan
 
Japan imported cotton to the tune of 1, 35,574 tons during 2006. However, India did not export any quantity of cotton to Japan. It will be appropriate to explore the exports of Indian cotton to Japan.
(v) Turkey
 
Turkey imported total quantity of 7, 37,734 tons of raw cotton during 2006 and India exported only 89,932 tons of raw cotton. India should try to penetrate this market in an effective manner as there is good potential for export.
D. Measures for enhancing competitiveness
Following measures need to be taken for enhancing competitiveness of India for exporting cotton lint:
Yield of cotton in India are quite low compared to USA (2.0 tons/ha), Brazil (2.3tons/ha) and Australia (4.4 tons/ha). India falls way below to the level of 1.2 tons/ha. Thus if India is to compete successfully in cotton exports, it must increase the productivity by increasing area under superior and productive varieties and irrigation. Government of India has successfully launched Technology Mission on cotton to achieve above objectives, but more intensified efforts need to be taken up.
Improving quality of cotton lint
Few years back, Indian cotton was considered as very inferior. However, after initiating certain steps to improve the quality under Mini Mission IV, the exports to different countries have greatly surged up, it will therefore, be very important to further improve the quality by covering more states and districts under modern ginning factories. For this, intensive monitoring of quality will have to be done.
12.
Documents required for export
a) Documents related to goods
a) Invoice b) Packing List c) Certificate of origin
b)
Documents related to shipment
c)
Documents related to Payment
a) Letter of Credit (L/C) b) Bill of Exchange
d)
Documents related to quality of goods
a) Phytosanitary Certificate b) GLOBALGAP Certification c) Health Certificate
e)
Organic Certification
- Certificate indicating material produce is based on organic farming.
f)
Documents related to Foreign Exchange Regulations
GR Form: Documents required by RBI which assures to RBI that the exporter will realize the proceeds of goods within 180 days from the date of Shipment.
g)
Other Document
Bank Realization Certification (BRC): This is the advice given by Foreign Exchange Bank after the realization of money from Importer.
13.
Price prevailing in international market
The given below tables shows the annual average price range of cotton in the markets of ASEAN countries. The table 17.7 shows the pricing trend in the markets of ASEAN countries
Table 17.7: Summary of prices for cotton in target markets for India
Country
Annual Average price Range (2003-08)
ASEAN
Currency
USD/kg
1.34 to 1.55
INR/kg
60.41 to 69.91
Source: Comrade Database
14.
Cost Calculation from harvest to packhouse to port
Cost estimates for exports of cotton from India (as per information collected during 2008)
(a) Procurement price*:
Approx. price (Rs. /kg) : 66.57 to 71.62
*Price of cotton varies according to variety, month of procurement
(b)
Charges for packing, transport etc.(below in table):
Table 17.8: Charges for packing, transport, etc.
Particulars
Rs./kg
Handling, packing and transport to port
3.08 to 5.05
Source: The Cotton Corporation of India Ltd.