The Hindu Business Line : No chance of cotton prices going up: Rana

The world production of cotton in 2001-02 was 21 million tonnes, eight per cent higher than the previous year. The consumption was likely to increase this year but the carryover stock would be higher than that of last year.

HYDERABAD, May 4

ANY increase in international prices of cotton is bleak in the near future, according to Mr Kashiram Rana, Union Minister for Textiles.

Addressing a seminar on `Integrated cotton cultivation' here on Saturday, the Minister pointed out that cotton prices internationally have been declining in the last three years and plunged to 41 cents per pound at present.

He said that the world production of cotton was on the increase. The production in 2001-02 was 21 million tonnes, which was eight per cent higher than the previous year. The consumption was likely to increase this year but the carryover stock would be higher than that of last year.

With the global prices remaining static at a low level, Mr Rana said that it was likely that Indian mills would retain their preference for imported cotton known for their superior quality.

Besides, he said, "a dubious yet unique distinction of the Indian cotton is the mixing of kapas lots from different pickings, as well as from altogether different varieties. Mixing gives rise to inconsistency and unpredictability in the average quality of fibres in individual bales."

Given this scenario, Mr Rana said that "it looks that even after the productivity targets of the Technology Mission on Cotton (TMC) are realised and the cultivation cost is substantially brought down, the Indian farmer might still find it hard to sell cotton in the domestic and international markets."

The Minister, however, said that the Union Government had checked large-scale import of cotton by undertaking various steps including increasing the import duty from five to 10 per cent.

There had been a decline in import of lint cotton to nine lakh bales in 2001-02 as compared 22 lakh bales imported in the previous year.

Emphasising the need for schemes that could supplement synergies in the reforms under TMC, he suggested vertical integration of cotton producers and the industry. Organised group of farmers could enter into a two-way mutually-beneficial contract either with ginners, industry or traders.

This, according to the Minister, would reduce farmer's price risk besides giving him advantages of new technology and supply of inputs and production services.

The industry would also benefit, as there would be consistent supply of quality cotton.

He said that the Maharashtra Cotton Monopoly Act would not benefit farmers and hence it should be repealed.

Mr Rana handed over about half-a-dozen integrated cotton cultivation agreements reached between growers' representatives and coordinating agencies.

He assured that the recommendations of the seminar, aimed at promoting organised cotton farming, would be implemented.

The Andhra Pradesh Chief Minister, Mr N. Chandrababu Naidu, said that introduction Bt cotton heralded a new era in cotton cultivation in the country.

He, however, cautioned that the Union Government should take adequate steps to ensure that it would not have any adverse affects on the environment and eco-system.

The Union Minister of State for Textiles, Mr V. Dhananjaya Kumar, said that the country was now producing about 2.5 million tonnes of lint cotton from about 8.5 million hectares of land.

However, the yield per hectare was only 300 kg, which was nearly 50 per cent of the world's average.

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No chance of cotton prices going up: Rana