The Hindu Business Line : Appachi Cotton keen on niche varieties this season

APPACHI Cotton Company, which pioneered in contract cotton farming in this part, is toying on promoting extra long staple (ELS) cotton varieties this season under the contract farming.

The Pollachi-based cotton trading firm which has been actively involved in integrated cotton cultivation programme (ICCP) as a contract farming model for the past three seasons has chosen to build a reliable acreage for the priced ELS varieties of `Suvin' and `DCH-32' considering their strong market potential.

Suvin yielding fibre length between 38mm and 40mm is spinnable into super fine yarn grade up to 200 counts and a good quality fibre commands premium price in the market.

``Unlike the generic short/medium staple cotton varieties whose prices were seen fluctuating wildly, the prices of Suvin and DCH cottons remained stable. In the last 10 years, the generic cotton prices kept swinging between Rs 1,600 and Rs 2,500 per quintal, while DCH stood steady in the Rs 2,800-3,000 price band for the last 5 years. In the case of Suvin, its price stood ground at Rs 5,000 per quintal for the last 10 years,'' said Mr Mani Chinnasamy, Director of ACC.

Its move to focus ELS cotton cultivation this season is partly influenced by the rising demand for these varieties from spinners who cater to manufacturers of high valued clothing. Also, the fear of migration of farmers from cotton to other cash crops due to price decline in seeded cotton has also forced promotion agencies such as ACC to limit their exposure in generic cotton and concentrate on super-fine varieties. Another strong reason for the ICCP promoter opting for niche cotton is the potential of these varieties becoming import-substitutes to high-priced ELS varieties such as PIMA or Giza

``Considering the high stacks involved in growing premium cotton such as Suvin or DCH-32 whose cultivation cost keeps rising steadily, we have proposed to procure seeded cotton of these varieties from farmers under the contract fold at assured price subject to their quality parameters,'' said Mr Mani.

ACC has all along been buying cotton raised under contract farming at prices prevailing in the market on the day. In order to give a proper growth climate, ACC would opt for encouraging irrigated cotton tract this time under its contract farming. It has chosen to launch its Suvin promotion campaign for the current year at Dindigul's Kannivady village.

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