The Hindu Business Line : Cotton coup

Amid the overall tardy agricultural growth of recent years and worsening shortages of traditional food and non-food crops, cotton stands out as a shining exception. Sustained high levels of output four seasons in a row have meant a remarkable transformation — from being a large importer the country has turned into a net exporter of significant volumes. More heartening, India has ascended to be world's second largest cotton producer this year, relegating the well-entrenched US to the third spot. India is now world's second largest cotton consumer after China and third largest exporter. This dramatic performance is mainly the result of technology (primarily the genetically-modified Bt cottonseed) and sustained efforts of the Technology Mission on Cotton, especially in strengthening post-production processes.

Yet, the composition of the output — in terms of fibre length and other essential features — leaves much to be desired. For instance, this season, long-staple cotton faces a glut while short-staple is in short supply, skewing prices for growers. Too many seed varieties, unregulated seed market, inappropriate agronomy in some regions and unscientific handling at marketing yards all combine to affect the marketability of the primary produce and, in turn, farmer income. Yields vary across the country. This must change. There is scope for capturing market opportunities and enhancing gains for all stakeholders. Global textile capacity is steadily migrating to most competitive developing countries. The country's cotton sector deserves guided progress to leverage inherent strengths, particularly post quota phase-out.

It is well recognised that over the next several years, robust economic growth is sure to create high consumption demand for fibres — both natural and synthetic. Apparel and clothing are slated to emerge as one of economy's high growth areas. Technical textiles (non-clothing applications) are also gaining in prominence. A strategic plan taking into account domestic fibre needs in quality and quantity terms is absolutely necessary. Insufficiency of correct data is the bane of the cotton sector. Soft infrastructure usually plays a less-recognised but practically significant role in planning for the future.

Systematic and timely collection of data on demand and supply, in general, and on quality, in particular, by agencies such as the Office of Textile Commissioner, would go a long way in planning for production, quality and export surplus. A clear advance signal to growers through dissemination of demand data would help advance the interests of all stakeholders including input suppliers and output users, ginning units as well as textile mills. Research efforts must be guided to developing seed varieties that not only lower production costs but also meet quality needs of user industries. Emergence of qualified pools of expertise and adaptability of workforce have to be supported. Integrated approach — from natural fibre to retail distribution — is the way forward to remain competitive in a rapidly globalising market.