CHAPTER 17

COTTON
1. Introduction
In general, the conditions required for the cultivation of cotton are met within the seasonally dry tropics and subtropics in the Northern and Southern hemispheres, but a large proportion of the cotton grown today is cultivated in areas with less rainfall that obtain the water from irrigation. India was the first country in the world to commercialize cotton hybrids. The leading exporters of cotton are USA, Uzbekistan, India, Brazil and Burkina Faso. World Scenario The largest producers of cotton in the world are China, India, USA, Pakistan, Uzbekistan, Brazil and Australia.During the year, 2006-07, total world production of cotton is 26,640 thousand tons. Largest producer of cotton is China, followed by India and U.S.A. (Table 17.1) Table 17.1: Showing area, production and productivity of major cotton growing countries (2006- 07) COUNTRY China India USA Pakistan Uzbekistan Brazil Australia AREA ('000 ha) 5,740.0 9,160.0 5,150.0 3,080.0 1,430.0 1,090.0 0.0140 PRODUCTION ('000 tons) 7,180.0 4,760.0 4,700.0 2,090.0 1,170.0 1,520.0 270.0 PRODUCTIVITY (tons/ha) 1.2 0.5 0.9 0.6 0.8 1.3 1.9

World 34,410.0 26,640.0 0.7 Source: Indian Cotton -A Profile 2007-2008, The Cotton Corporation of India Ltd.

Indian scenario The production of cotton lint in India is increasing at a steady pace from 3043 thousand tons in 2003-04 to 4760 thousand tons in 2006-07; this year production is expected to be 5270 thousand tons. Area under the cotton cultivation has shown a similar trend. The productivity is increasing rapidly, it was 0.39 tons/ha in 2003-04 and it is expected to be 0.55 tons/ha in 2007-08. The table below shows the details.

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Table 17.2: Showing area, production and productivity of cotton lint in India YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 AREA (in 000ha) 7630 8786 8677 9142 9530 PRODUCTION (in 000tons) 3043 4131 4148 4760 5270 PRODUCTIVITY (tons/ha) 0.39 0.47 0.47 0.52 0.55

Source: http://www.cotcorp.gov.in/statistics.asp

2. Major producing states

Gujarat is the leading producer of cotton in India followed by Maharashtra, Andhra Pradesh, Punjab, Madhya Pradesh, and Haryana etc. Highest productivity is also reported from Gujarat followed by Tamil Nadu, Andhra Pradesh, and Punjab etc. The details are given below in table 17.3. Table 17.3: Showing area, production and productivity of leading cotton lint growing states in India STATES AREA (000ha)
2005-06 2006-07 2390 3070 972 607 639 530 350 375 122 087 9142

PRODUCTION (000 tons)

2007-08 2005-06 2516 3191 1096 648 662 478 368 371 123 77 9530 1513 612 510 357 306 238 187 110.5 93.5 17 3944 204 4148 2006-07 1717 884 595 442 306 272 136 102 85 17 4556 204 4760

PRODUCTIVITY (tons/ha)
2006-07 2007-08 0.71 0.28 0.61 0.72 0.47 0.51 0.38 0.27 0.69 0.19 0.74 0.32 0.66 0.63 0.53 0.56 0.41 0.36 0.69 0.44 -

2007-08 2005-06 1870 1020 731 408 357 272 153 136 85 34 5066 204 5270 0.79 0.21 0.52 0.61 0.49 0.37 0.39 0.26 0.66 0.21 -

Gujarat Maharashtra Andhra Pradesh Punjab Madhya Pradesh Haryana Rajasthan Karnataka Tamil Nadu Others Total Loose lint Grand total

1906 2875 1033 557 620 583 471 413 140 79 8677

Source: Cotton Advisory Board, http://www.cotcorp.gov.in/statistics.asp 191

3. Commercial cotton varieties

Following are the important commercial varieties of cotton including some hybrids: F-414/H-777/J-34 Raj F-414/H-777/J-34 Hybrid Rajasthan F-414/H-777/J-34 Hybrid (Haryana) F-414/H-777/J-34 Hybrid (Punjab) SHANKAR 6/10 (SAU) SHANKAR 6/10 (Guj) Suvin Description of some of the pedigree varieties is given below in table 17.4 Table 17.4: Description of some pedigree varieties of cotton Variety J34 SG Description It is a selection from non descriptive hirustum mixtures. Re-selection from Bikaneri Narma. It is sown in the months of April/May and the crop is ready for picking by October/December.. J34RG and SG are grown in the states of Punjab, Haryana and Rajasthan and total production per annum is around 2.6 million bales of each of 170 Kg. LRA 5166 is derived from a three variety cross involving Laxmi Cotton.Reba B-50 from Central Africa and AC-122.. It is sown in the month of June/July and the crop is ready for picking by December/January. Principally this variety is grown in Maharashtra, Madhya Pradesh, Andhra Pradesh, Karnataka and Tamil Nadu. Total production is 1.6 million tons. It is an intra hirustum hybrid between Female C-4 X Male C-549. It is sown in the month of June/July and the crop is ready for picking by November/January. This type of cotton is mainly grown in the states of Madhya Pradesh and Maharashtra. Quantity of yield is about 1.7 million bales of 170 Kg each. It is a cross between Guj.67(G.hir.) x American nectariless(G.hirs.). Its duration is June/July to November/February. It is grown in the states of Gujarat, Madhya Pradesh, Maharashtra and Andhra Pradesh under irrigated and assured rainfall conditions. It is generally cultivated in well drained black, sandy, loam soil. This variety matures about 5-6 weeks early as compared to other standard Gujarat cottons. It has continuous production of flushes of flowers and bolls. It is estimated that production of Hybrid-4 may be around 13 lakh bales of 170 Kg each. If the entire country is taken into consideration. Thus it easily meets the internal demand and export needs as well. Innumerable inquiries are being made by European countries and Japan fort his cotton variety.

LRA-5166

MECH-1

HYBRID -4

SHANKAR-6 It is a cross between G.Dot.100(G.hirs.) x G.Cot.10(G.hirs.). It is sown in the month of June-July and is ready for picking in November and may extend upto February. It is cultivated in an area of 4.4 million Acres in the state of Gujarat. SHANKAR-4 It is a cross between G.cot.1009G.hir) x G.cot.10(G.hir.) the crop is generally 192

sown in the month of June-July, the first flowers appear in 60-75 days after sowing and the balls appear within 190-210 days after sowing . The crop is ready for harvest by November and may extend upto February. The plant grows to a height of 120-150 cm. It is susceptible to bollworms and mildly susceptible to prodenia and mites. This variety is spreading fast on account of its high demand in the market. Now it is the major variety of cotton in the whole of Gujarat and in Maharashtra also in an appreciable area adjoining to Gujarat this cotton is grown. This hybrid cotton has fiber characters similar to that of Hybrid 4 and is early by about 2 weeks. It is in great demand by the textile industry in India, Europe and Japan. MCU-5 Developed from crosses involving Sea Island, 542, MCU1, MCU2 and Gatooma. It is sown in the months of mid-August to mid-September and bolls are ready for picking by February and may go on upto April. This variety is grown in the states of Andhra Pradesh, Tamil Nadu, Orissa and Maharashtra. Total production is about 5 lakh bales. This hybrid cotton was developed by a private company Naziveedu seeds limited in A.P. under brand name SUBEEJ successfully. It can withstand extreme climates like drought and excess rains. This is a new variety of cotton grown in the states of Maharashtra, Andhra Pradesh, Karnataka and Madhya Pradesh with a total annual production of 3.5 million bales. It is suitable for counts up to 40s and for weaving enduses as the yarn made out of this variety gives good strength. It is an interspecific hybrid developed by crossing DS 58 (G.hirsutum) X SB 425 YF(G.Barbadense). It is sown in the month of July-August and the crop is ready for picking by January to March. It is grows in the states of Karnataka, Tamilnadu and Madhya Pradesh. Production of this variety is 1.5 lakh bales. A selection from a cross between Sujata and Sea Island St.Vincent. It is sown in the month of August-September and comes to harvest by February or March. Suvin is the most superior cotton grown in India and is comparable to Egyptian Giza 45 and Sudan VS cotton.It easily spins 120s count.The attractive feature of this variety is that its fibre characters remain uniform the first picking to the last picking. With the release of Suvin, imports of Egyptian Cottons were completely done away with.

Bunny/ Brahma

DCH-32

Suvin

4. Good Agricultural Practices (GAP)

Adoption of improved varieties. Integrated water and nutrient management. Integrated pest and disease management.

5. Harvesting season
The harvesting season of cotton in leading states is shown in the graph below: - Month of harvesting 193

States Gujarat Maharashtra Andhra Pradesh Punjab Madhya Pradesh Haryana Rajasthan Karnataka Tamil Nadu

Jan

Feb

Mar

Apr

May June July Aug Sept Oct Nov Dec

Fig. - 43 Source: Indian Cotton -A Profile 2005-2006, The Cotton Corporation of India Ltd.

6. Arrival pattern
The cotton arrives in the market in the period of September April. However cotton from Tamil Nadu arrives market in the months of June- July also.

7. Concentrated pockets
The detail of concentrated pockets of cotton in leading states is listed below in table 17.5. Table 17.5: showing concentrated pockets of cotton in leading states States Gujarat Concentrated pocket Kutchh, Banskantha, Patan, Sabarkantha, Mehsana, Ganganagar, Ahemdabad, Surendranagar, Kheda, rajkot, Jamnagar, Porbandar, Junagarh, Amreli, Bhavnagar, Godhra, Dahod, vadodara, Bharuch, Narmada, Surat Nandurbar, Dhule, Jalgaon, Buldhana, Aurangabad, Jalna, Parbhani, Amravati, Wardha, Nagpur, Yavatmal, Akola, Hingoli, Nanded, Beed, Ahmednagar, Pune, Satara

Maharashtra

Andhra Pradesh Echoda, Nirmal, Bhainsa, Asifabad, Bela, Pedapalli, Parkal, Warangal, Dachefalle, Sattenapalle, Amravathi, Madnor, Narsaraoped, Guntur, Ganpawarm, Krishna, Parachuru, Chilkalurpet, Medarmetla, Ongole, Nellore, Tadpatri, Guntkal, Adoni, Nandyal Punjab Bhatinda, Faridkot, jagraon, Ahmadnagar, kotkapura, Fazilka, Muktasar, Dhuri, Nabha, Branala, jaitu, Malout, Abohar, Gidderbaha, Goniana, Sangata, Raman, rampuraphul, Tapa, Bhuchu, Buldhlada, Bareta, Sardulgarh 194

Madhya Pradesh Ratlam, Badnwar, Manavar, Kukshi, Dhar, Anjad, Dhamnod, barwah, Bhikangaon, Khargone, sendhwa, Sanawad, Khandwa, Burhanpur, Tukaithad, Khategaon, Harda, Sirsali, Khirkiya, Sausar, Pandurna Haryana Danwali, Kalanwali, Sirsa, Ratia, Fatehabad, Adampur, Hissar, Bhuna, Hansi, Bhiwani, Tohana, Ukalana, Kaithal, Narwana, Jind, Sonipat, Rohtak, Jhajjar, Rewari, Monindergarh, Kesrisinghpur, Sri Karanpur, Gajsinghpur, Rahsinghnagar, Anoopgarh, Gharsana, Rawla, Khajuwala, Sri Ganganagar, Sadulshar, Sangaria, Hanumangarh, rawatsar, Bhadra, Khertal, Naugaon, Merta, Beawar, Bijaynagar, Kekri, Bhilwara, Asind, Banswara Bijapur, Bagalkot, raichur, belgaum, Dharwad, NAval Gund, Gadag, Bellery, Haveri, Chitradurga, Shimoga, Arsikere, Mysore Villupuram, Panruti, Attur, Thanjaur, salem, Erode, Perundurai, Kangayam, Dharapuram, Tirupur, Coimbatore, Udalmpet, Dindigul, Madurai, Sattur, Kovilpatti, Triunelveli

Rajasthan

Karnataka Tamil Nadu

8. Criteria and description of grades

Agmark standards of cotton lint, is given below: Table 17.6: Grade designation and definition of quality of cotton lint Grade designation Definition of quality Special characteristics General characteristics a) shall consist of lint ( in full pressed bales) obtained by machine ginning of the kapas:b) shall be clean and reasonably free from leaf, seed, stain or other imperfections; c) shall be dry and free from a trace added moisture.

Agmark certified Shall be the product derived from kapas (cotton seed) pedigreed variety approved for Agmarking, grown on a (Red label) Government farm or by a registered seed grower licensed by the appropriate Government Department or by any other agency to be recognized by the Agricultural Marketing Adviser to the Government of India for the purpose and which had been derived from pure seed supplied by a Government department or by any other agency to be resigned by the agricultural marketing adviser to the government of India for the purpose and crop of which shall have been inspected and recognized wherever necessary and duly certified by the appropriate Government Department or by any other agency to be recognized by the Agricultural Marketing Adviser to the Government of India, for the purpose as being at least 98% pure: and b) Shall have been ginned and pressed under direct supervision of the appropriate Government Department or by any other agency to be recognized by the 195

Agricultural Marketing Adviser to the Government of India for the purpose. Agmark Certified Shall be the product derived from kapas ( cotton seed) (Black Label) variety approved for Agmarking, grown on a Government farm or by a registered seed grower licensed by the appropriate Government Department or by any other agency to be recognized by the Agricultural Marketing Adviser to the Government of India for the purpose and which had been derived from pure seed supplied by a Government department or by any other agency to be resigned by the agricultural marketing adviser to the government of India for the purpose and crop of which shall have been inspected and recognized wherever necessary and duly certified by the appropriate Government Department or by any other agency to be recognized by the Agricultural Marketing Adviser to the Government of India, for the purpose as being at least 98% pure: and b) Shall have been ginned and pressed under direct supervision of the appropriate Government Department or by any other agency to be recognized by the Agricultural Marketing Adviser to the Government of India for the purpose. a) shall consist of lint ( in full pressed bales) obtained by machine ginning of the kapas:b) shall be clean and reasonably free from leaf, seed, stain or other imperfections; c) shall be dry and free from a trace added moisture.

9. Packaging and its details

Cotton lint is packed in bales of 170 Kg.

10. Price Graph of cotton

Price Graph of Cotton
3000 2500
Price (Rs/Qtl)
January February March April May June July August September October Nov ember December

2000 1500 1000 500 0 Gujarat Maharashtra

States

Andhra Pradesh

Fig. - 44 *The above graph showing the price (in Rs/Qtl) of cotton in major state

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11. Export and export potential

A. Domestic strengths for export of cotton lint Domestic strengths for export of cotton from India are as follows: India produces sizeable quantity of cotton next only to China and USA. India has bred a number of useful hybrids and superior varieties, apart from Bt cotton varieties for cultivation and have been made available to farmers for cultivation. There is a strong research support for cotton cultivation, as Central Institute of Cotton Research is located in Maharashtra and also State Agricultural Universities. Government of India in collaboration with Cotton Corporation of India has launched Technology Mission on cotton with a view to increase total production of cotton, by increasing productivity by better varieties and bringing more area under irrigation. As a result a number of Mini Missions were taken up to increase production. India has also embarked upon Mini Mission IVwith a view to improve the quantity of lint by installing more modern ginning machines in cotton factories.

B. Export

Indias export of cotton was insignificant up to 2004-05 and increased only during 2005-06 and 2006-07. Cotton export from India increased from 13,306 tons in 2002-03 to 1,001,718 tons in 200607(Table 17.6 & Fig. 44). Table 17. 6: Export of cotton lint from India Year Quantity(tons) 2002-2003 13306 2003-2004 201372 2004-2005 160600 2005-2006 776632 2006-2007 1001718 Source: The Cotton Corporation of India Ltd. Value(Rs. Lakh) 6058 88114 70237 384038 535109

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Export of cotton lint from India

1200000

Quantity in tons

1000000 800000 600000 400000 200000

2002-2003 2003-2004 2004-2005 2005-2006 2006-2007

Years

Fig. - 45 C. Export potential Export potential of cotton is discussed region / areas wise in the following paras: (i) ASEAN countries ASEAN countries imported 1,059,967 tons during 2006. There is a decrease of 3% in demand over 2003. The largest importers in ASEAN countries are Indonesia (4,63,205 tons), Thailand (4,22,042 tons) and Vietnam (1,19,021 tons).Indias exports to these countries are approx 12% of their requirements, exporting 50,534 tons to Indonesia, 44,478 tons to Thailand and 33,670 tons to Vietnam and negligible quantities to Philippines and Malaysia. Main competition for India for export of cotton is from Australia and U.S.A. India is nearer to these countries from location point of view compared to U.S.A. India is supplying at much lower prices compared to U.S.A and Australia but still, India is not able to corner more than 12% share of imports.India needs to strive for higher productivity and lower cost of production on one hand and improve quality on the other for enhancing exports to these countries. (ii) Korea Republic of Korea imported 216268 tons of cotton during 2006; however India exported 6999 tons of cotton during 2006. The other exporters were U.S.A (83,944 tons), Australia (53,458 tons) and Brazil (40,091 tons).Inspite of the fact that India is supplying cotton at much competitive prices over U.S.A and Australia and India is also nearer to Korea location wise compared to U.S.A and Brazil, then even Indias export is very less. India should make sincere efforts for getting a larger share of Koreas imports of cotton. (iii) China China imported 3,641,417 tons of cotton during 2006 whereas India exported only 465388 tons of cotton during 2006. The major competition is from U.S.A, Uzbekistan and Australia. U.S.A is the largest exporter to China and India is second largest exporter.India location wise is

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closer to China and should have larger share in imports of China by becoming more competitive and offering better quality cotton. (iv) Japan Japan imported cotton to the tune of 1, 35,574 tons during 2006. However, India did not export any quantity of cotton to Japan. It will be appropriate to explore the exports of Indian cotton to Japan. (v) Turkey Turkey imported total quantity of 7, 37,734 tons of raw cotton during 2006 and India exported only 89,932 tons of raw cotton. India should try to penetrate this market in an effective manner as there is good potential for export. D. Measures for enhancing competitiveness Following measures need to be taken for enhancing competitiveness of India for exporting cotton lint: Yield of cotton in India are quite low compared to USA (2.0 tons/ha), Brazil (2.3tons/ha) and Australia (4.4 tons/ha). India falls way below to the level of 1.2 tons/ha. Thus if India is to compete successfully in cotton exports, it must increase the productivity by increasing area under superior and productive varieties and irrigation. Government of India has successfully launched Technology Mission on cotton to achieve above objectives, but more intensified efforts need to be taken up. Improving quality of cotton lint Few years back, Indian cotton was considered as very inferior. However, after initiating certain steps to improve the quality under Mini Mission IV, the exports to different countries have greatly surged up, it will therefore, be very important to further improve the quality by covering more states and districts under modern ginning factories. For this, intensive monitoring of quality will have to be done.

12. Documents required for export

a) Documents related to goods a) Invoice a) Mate Receipt b) Packing List b) Shipping Bill c) Certificate of origin c) Bill of handing b) Bill of Exchange b) GLOBALGAP Certification c) Health Certificate d) Airway Bill b) Documents related to shipment c) Documents related to Payment a) Letter of Credit (L/C) a) Phytosanitary Certificate d) Documents related to quality of goods

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e) Organic Certification - Certificate indicating material produce is based on organic farming. f) Documents related to Foreign Exchange Regulations GR Form: Documents required by RBI which assures to RBI that the exporter will realize the proceeds of goods within 180 days from the date of Shipment. g) Other Document Bank Realization Certification (BRC): This is the advice given by Foreign Exchange Bank after the realization of money from Importer.

13. Price prevailing in international market

The given below tables shows the annual average price range of cotton in the markets of ASEAN countries. The table 17.7 shows the pricing trend in the markets of ASEAN countries Table 17.7: Summary of prices for cotton in target markets for India Country ASEAN Annual Average price Range (2003-08) Currency USD/kg INR/kg 1.34 to 1.55 60.41 to 69.91

Source: Comrade Database

14. Cost Calculation from harvest to packhouse to port

Cost estimates for exports of cotton from India (as per information collected during 2008) (a) Procurement price*: Approx. price (Rs. /kg) : 66.57 to 71.62

*Price of cotton varies according to variety, month of procurement (b) Charges for packing, transport etc.(below in table): Table 17.8: Charges for packing, transport, etc. Particulars Handling, packing and transport to port Source: The Cotton Corporation of India Ltd. 200 Rs./kg 3.08 to 5.05

(c) Sea freight charges*: Freight rates for ordinary container are as follows: Ordinary containers (Rates in US dollars) 20 40 (i) Dubai/Doha 600 900 (ii) Kuala Lampur/Singapore 100 175 (iii)Flaxo (UK)/Amsterdam 900 1450 * It varies from year to year /season to season, capacity of container and distance covered

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