The Hindu Business Line : Despite calamities, India set for bumper cotton crop: Vaghela

Industry & Economy - Natural Calamities
Agri-Biz & Commodities - Cotton
States - Gujarat
Despite calamities, India set for bumper cotton crop: Vaghela

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Textile Ministry to press for extension of Technology Mission on Cotton

Prospects bright
Gujarat alone is expected to produce 100 lakh bales as against last year's 85 lakh bales.
Bumper crop would not financially affect cotton growers in view of increasing export opportunities
Biggest export opportunity is expected to come from China.

Ahmedabad , Sept. 17

Floods and other natural calamities have not adversely affected cotton production prospects this year and the country is expected to witness a record yield of about 250 lakh bales, according to Mr Shankarsinh Vaghela, Union Textile Minister.

The Union Finance Minister, Mr P. Chidambaram, is likely to visit Surat and other flood-affected areas soon, after which the Centre would announce a package.

Addressing a press conference, after inaugurating a seminar on "Bountiful Cotton Harvest: Trade Opportunities for Gujarat's Ginners", under the auspices of the Ahmedabad Textile Industry Research Association here on Saturday, Mr Vaghela said that Gujarat alone is expected to produce 100 lakh bales as against last year's 85 lakh bales.

Replying to a question, he said floods and other calamities could only marginally affect the produce in some areas.

He said the bumper crop would not financially affect cotton growers in view of increasing export opportunities. Even the Cotton Corporation of India would not be required to enter the market with minimum support price (MSP) to cotton growers but could certainly play a significant role to extend necessary commercial support to them.

Export opportunities

On export opportunities, Mr Vaghela pointed out that the biggest such opportunity is expected to come from China where the garment manufacturing industry is growing at an accelerating rate but that country has to depend on others such as India to procure raw materials. Last year, India exported 25 lakh bales to China. Asked if India would enter into a race with China for garment exports, he replied in the negative, adding the situation in India is not conducive to eliminate one sector or the other in the textile industry. In China, centralised farming and garment production reduces overhead costs but the benefits do not necessarily percolate down to the lowest strata.

According to him, despite abolition of the quota system in the global textile market, India's exports have grown by 26 and 20 per cent, respectively, in the American and European markets. And India continues to be the largest exporter of carpets, he said, adding the country was in neck-in-neck competition with China in this respect.

TMC's contribution

Asked about the term of the Technology Mission on Cotton (TMC) which ends later this year, Mr Vaghela said his Ministry would urge the Finance Ministry to extend it up to 2010 in view of its immense contribution to modernising ginning and pressing factories. The units, which have failed to take advantage of the TMC, could now get another opportunity to improve their production if the Finance Ministry accepts the proposal.

He said India is expected to reduce its dependence on imported long staple cotton fibre from Pakistan as the yield in the country of this variety may increase from four lakh bales to five lakh bales this year. He had already asked the Governments in Tamil Nadu and Karnataka, the largest producers of long staple, to concentrate in this area.

India produced four lakh bales of long staple fibre against her requirement of about eight lakh bales, and the deficit was met by imports from Pakistan.

On Gujarat, Mr Vaghela said the yield in the State had grown up to 725 kg per hectares. Punjab, with 887 kg per hectare, topped the list in India. About possible contract farming in Gujarat, he said some corporate houses had evinced interest so that they could get the desired quality and quantity in the long run but nothing had been finalised so far. If this happened, it would immensely benefit the farmers. Even barren land could be used for contract farming.

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