The Hindu Business Line : Vaghela pegs cotton production at 270 lakh bales

With a record bumper cotton crop projected this year, the country is poised to export about 50 lakh bales (of 170 kg) against the 47 lakh bales exported in 2005-06, the Union Textile Minister, Mr Shankersinh Vaghela, said on Monday.

The Ministry has directed the Cotton Corporation of India (CCI) to be ready to purchase cotton in any State at minimum support price (MSP) the moment these prices dip to the MSP-level. If cotton prices increase above MSP, CCI would purchase the commodity at commercial prices so that the growers could get remunerative prices for their produce. Except in Andhra Pradesh, the current cotton prices are 3-11 per cent above the MSP. At present, CCI is purchasing cotton, wherever required, at prices higher than MSP.

Increased yield

Mr Vaghela said India had now emerged the third largest cotton producer in the world, after China and the US, and the country's yield had increased from 136 lakh bales in 2002-03 to 244 lakh bales in 2005-06, an increase of 79 per cent in three years.

This is further expected to increase by 11 per cent this year, with the yield reaching an expected 270 lakh bales, including 100 lakh bales in Gujarat alone.

Gujarat has seen cotton production continuously go up from 30.5 lakh bales to 89 lakh bales between 2002-03 and 2005-06 to 100 lakh bales in 2006-07.

The area under cotton cultivation has increased by 4 per cent during 2006-07, to 92 lakh hectare.

In fact, the textile industry, which was considered a sunset sector during the previous NDA regime, has bounced back as a sunrise sector under the UPA Government, the Minister remarked.

The country's consumption of cotton has increased by 28 per cent between 2002-03 and 2005-06, from 169 lakh bales to 217 lakh bales and now to 235 lakh bales in 2006-07, he told a news conference here.

Productivity looks up

Use of Bt and other new hybrid seeds and the farmers' belief in making investments in this sector have increased the yield per hectare by 55 per cent, which has increased the growers' income as well. In particular, the average productivity of cotton has increased from 302 kg per hectare in 2002-03 to 467 kg a hectare in 2005-06 due to the steps taken by the Centre under the Integrated Cotton Development Program and the Technology Mission on Cotton (TMC).

Replying to questions, Mr Vaghela pointed out that the CCI had, during 2005-06, bought 12.5 lakh bales against the MSP and 1 lakh bales at commercial prices, out of a total yield of 244 lakh bales. The corporation had, in 2004-05, purchased 27.5 lakh bales against MSP and 0.44 lakh bales commercially in what was the CCI's biggest buy so far.

In 2005-06, the corporation's turnover increased to Rs 2,425 crore from Rs 1,629 crore the year before, and it earned a net profit of Rs 14.55 crore. In the current cotton season of 2006-07, CCI has joined hands with textile mills and organisations for contract farming in 35,000 hectares, Mr Vaghela said.

About the TMC, the Minister said, CCI, being the implementing agency for reforms and modernisation of market yards and ginning and pressing units, respectively, sanctioned 216 market yards and 777 factories under Mini-Missions III and IV. Of these, 39 market yards and 401 factories are in Gujarat alone.

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