INDIA'S COTTON

Cotton is one of the most important commercial crops cultivated in India and accounts for around 23% of the total global cotton production. It plays a major role in sustaining the livelihood of an estimated 6 million cotton farmers and 40-50 million people engaged in related activity such as cotton processing & trade. The Indian Textile Industry consumes a diverse range of fibers and yarns and the ratio of use of cotton to non - cotton fibers in India is around 60:40 whereas it is 30:70 in the rest of the world. Apart from being the provider of a basic necessity of life i.e. clothing which is next only to food, cotton is also one of the largest contributors to India’s net foreign exchange by way of exports in the form of raw cotton, intermediate products such as yarn and fabrics to ultimate finished products in the form of garments, made ups and knitwear. Due to its economic importance in India, it is also termed as “White-Gold”.

National Scenario

Acreage under cotton and yield:

India got 1st place in the world in cotton acreage with 130.61 lakh hectares area under cotton cultivation i.e. around 40% of world area of 324.16 lakh hectares. Approximately 67% of Indian’s cotton is produced on rain-fed areas and 33% on irrigated lands. In terms of productivity, India is on 39th rank with yield of 447 kg/ha.

Production and consumption of cotton:

India is the only country which grows all four species of cotton G. Arboreum & G. Herbaceum (Asian cotton), G. Barbadense (Egyptian cotton) and G. Hirsutum (American Upland cotton). G. Hirsutum represents 90% of the hybrid cotton production in India and all the current Bt cotton hybrids are G. Hirsutuim. In India, majority of cotton production comes from 9 major cotton growing states, which are grouped into three diverse agro-ecological zones, as under:-

i) Northern Zone - Punjab, Haryana and Rajasthan

ii) Central Zone - Gujarat, Maharashtra and Madhya Pradesh

iii) Southern Zone - Telangana, Andhra Pradesh and Karnataka.

Apart from the above the cotton is also grown in the state of Odisha and Tamil Nadu. India is having 2nd place in the world with estimated production of 343.47 lakh bales (5.84 Million Metric Tonnes) during cotton season 2022-23 i.e. 23.83% of world cotton production of 1441 lakh bales (24.51 Million Metric Tonnes). India is also the 2nd largest consumer of cotton in the world with estimated consumption of 311 lakh bales (5.29 Million Metric Tonnes i.e. 22.24% of world cotton consumption of 1399 lakh bales (23.79 Million Metric Tonnes).

Import and Export of cotton:

One of the largest exporter of cotton with estimated export of 30 lakh bales (0.51 Million Metric Tonnes) i.e. 6% of world export of 528 lakh bales (8.98 Million Metric Tonnes) in 2022-23. Although India is a leading producer and exporter of cotton, some quantity i.e. less than 10% of the total consumption of cotton in India is imported by the textile industry to meet their specific requirement.

International Scenario:

Global production for 2022-23 is projected at 24.51 million Tonnes (1441 lakh bales) which is 2.8% lesser in comparison to previous year’s production of 25.18 million Tonnes (1481 lakh bales). Global cotton consumption is projected at 23.79 million Tonnes (1399 lakh bales) which is around 8% lesser in comparison to previous year’s consumption of 25.81 million Tonnes (1518 lakh bales). Global cotton export is projected at 8.98 million Tonnes (528 lakh bales) which is 8% lower in comparison to previous year’s export of 9.73 million Tonnes (572 lakh bales). Global cotton import is estimated at 8.98 million Tonnes (528 lakh bales) which is 6% lower in comparison to previous year’s import of 9.60 million Tonnes (564 lakh bales). Global ending stocks is estimated at 20.14 million Tonnes (1184 lakh bales) which is 4% higher in comparison to previous year’s ending stock of 19.42 million Tonnes (1142 lakh bales).

Minimum Support Price (MSP) Operation

The Cotton Corporation of India Limited (CCI) has been nominated by the Government of India for undertaking MSP operations in the event when prices of seed cotton (kapas) fall below the MSP level for procuring FAQ grade kapas offered by the cotton farmers in various APMC market yards at MSP rates.

Every year before the commencement of the Cotton Year (Oct. to Sept.), the Ministry of Agriculture based on the recommendations of Advisory Board viz., Commission for Agricultural Costs and Prices (CACP) fixes the MSP with a view to give incentives to the Cotton farmers of the country.

Accordingly, taking into consideration the recommendation of CACP, Ministry of Agriculture declares MSP for two basic varieties of Fair Average Quality (FAQ) cotton viz. Medium Staple length (staple length of 24.5 mm to 25.5 mm & micronaire value of 4.3 to 5.1) and long staple length (staple length of 29.5 to 30.5 mm & micronaire of 3.5 to 4.3). For cotton season 2023-24, MSP for medium staple length cotton has been fixed at Rs. 6620/- per quintal & for long staple at Rs. 7020/- per quintal. 4.4 Based on the Support Price of these two basic varieties of Seed cotton (Kapas) and taking into account the quality differential, normal price differential and other relevant factors, the MSP for other classes of Seed cotton (Kapas) of Fair Average Quality (FAQ) is fixed by the Office of Textile Commissioner