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Textile mills may need 315 lakh bales
The Cotton Advisory Board, which met in Mumbai on Tuesday, said it expected cotton output to rise by almost 9% this season (October 2017 to September 2018). Last year’s production was estimated to be 345 lakh bales, which is expected to climb to 377 lakh bales this year. Imports last season stood at 30.94 lakh bales, which would likely drop to about 17 lakh bales this year.
Demand from mills
Consumption by textile mills and exports is expected to increase. Demand from textile mills is likely to be 315 lakh bales this season as against 288.86 lakh bales last season, while exports might go up to 67 lakh bales as against 58.21 lakh bales last season. Production is expected to be higher in Punjab, Haryana, Gujarat, Telangana and Andhra Pradesh. According to industry sources, cotton exports to Pakistan might be higher this year. Further, consumption by domestic textile mills will increase provided export of yarn and fabric picks up.
Archives
The Cotton Advisory Board (CAB) has estimated the fibre’s output to increase by 9 per cent to 377 lakh bales (of 170 kg each) despite lower production in Maharashtra and Madhya Pradesh. The output in the northern region is expected to increase 28 per cent to 59 lakh bales (46 lb) on the back of a bumper crop in Rajasthan and Punjab, which is pegged at 22 lb (16 lb) and 12 lb (9 lb).
Though the output in the southern region is slated to go up to 104 lb from 90 lb, it may come under revision due to the pest attack in Telangana and Tamil Nadu, said Kavita Gupta, Textile Commissioner, who headed the first CAB meeting for the current season on Tuesday.
Acreage
The area under cotton cultivation has gone up 19 per cent to 122 lakh hectares (108 lakh hectares). With a lower import estimate of 17 lb (31 lb) and opening stock of 48 lb (36 lb), the overall supply is put at 442 lb (412 lb).
On the demand side, mill consumption is estimated to be higher at 288 lb (263 lb) – consumption by the small-scale and non-textile industry may increase to 27 lb (26 lb) and 19 lb (17 lb). Exports are slated to increase to 67 lb (58 lb) as Pakistan is expected to import from India, said Gupta. Though there were pest attacks in Gujarat, the impact was contained as the farmers adopted the best practices suggested by the Central Institute of Cotton Research. However, Maharashtra suffered the worst pest attack, especially in Yavatmal and Jalgaon. Other States that were hit are Karnataka, Telangana and Madhya Pradesh. On the sharp fall in cotton prices, Gupta said the Cotton Corporation of India has procured 3.5 lb of cotton worth Rs. 688 crore at a minimum support price of Rs. 4,320 a quintal. However, CCI’s intervention from now on will be limited as prices are expected to stabilise above the MSP, she said.
Strong buying was witnessed on the cotton market on Monday as spinners preferred to get quality lint and willingly paid premium price for Sindh variety.
This is the second time in the season that prices have crossed above the Rs7,000 mark to reach Rs7,050 per maund. However, activity remained restricted due to short supply of quality lint.
The rupee-dollar parity is going to impact cotton imports which will become costlier in case the rupee value declines against dollar.
This was a cause of concern for the textile industry because a huge quantity of around 3 million bales is expected to be imported.
Meanwhile, the downpour on Monday in Punjab would be beneficial for wheat crop but would be harmful for the cotton where picking has yet to finish. However, reports suggested that most of the crop has been picked.
There is growing concern amongst spinners that late approval for import of cotton from India would not help because by end of this month much of quality cotton would have been lifted by Indian textile industry or exported. The world leading cotton markets gave mixed trend with Indian cotton closing steady but the New York and Chinese cotton markets were under pressure.
The Karachi Cotton Association (KCA) kept its spot rates steady at weekend level.
The following deals were reported to have changed hands on the ready counter: 800 bales, Ghotki, at Rs7,050; 400 bales, Daharki, at Rs7,050; 400 bales, Mir¬pur Mathelo, at Rs7,050; 2,000 bales, Rohri, at Rs6,500 to Rs6,700; 1,600 bales, Saleh Pat, at Rs6,550 to Rs6,750; 2,200 bales, Haroonabad, at Rs6,450; 2,400 bales, Rahim¬yar Khan, at Rs6,875 to Rs7,000; 600 bales, Khane¬wal, at Rs6,300; 1,200 bales, Mianwali, at Rs6,300; and 1,000 bales, Layyah, at Rs6,300.
Seeds sold to farmers without getting approval from the Genetic Engineering Appraisal Committee
Farmers in the district allege they have been taken for a ride by the seed companies and Pink Bollwarm has affected the fields resulting in huge loss.
Some of the farmers had also bought herbicide-tolerant seeds which were reportedly sold in the villages by some unidentified persons. It was suspected that the herbicide-tolerant cotton seeds, still at experimental stage, were sold to farmers without getting approval from the Genetic Engineering Appraisal Committee (GEAC).
V. Madduleti, a farmer from Atmakur in Sadashivapet mandal, had migrated from Kurool district in the neighbouring Andhra Pradesh more than two-and-a-half decades ago and living in the village by investing whatever he is earning on the leased land. He does not own single acre of land, but cultivates cotton in 28 acres.
The lease per acre is about ?18,000 per acre and total lease amount he has to shell down has crossed ?5 lakh. In addition, he spent about ?20,000 per acre, which comes to about ?5.6 lakh, expecting a good return of cotton yield. But, the cotton crop failed him pushing into a debt trap of ?10 lakh.
“The fact is BG Cotton – III, which was otherwise being mentioned as Herbicide-Tolerant Cotton containing Round-up Ready and Round-up Flex (RRF) gene was cultivated by many farmers. A letter written by the State Government in the first week of this month to the Centre admits that the unapproved RRF trait got released into the field and now it is expected to be found in the cotton crop raised by farmers covering considerable area. Also it is spreading rapidly and contaminating other cotton hybrid varieties causing threat to the biological resources besides causing health hazards with the usage of Glyphosate in cotton fields,” said Sarampally Malla Reddy, vice-president, All India Kisan Sabha (AIKS).
The letter has also stated that the staff of Agriculture Department had found in their filed visit that unapproved herbicide-tolerance trait was grown by cotton farmers. “The farmers had incurred huge loss due to the sale of spurious seeds by cotton seed production companies. Take action against the companies responsible for the situation and pay a compensation of ?50,000 per acre,” demanded Mr. Malla Reddy while addressing a dharna held by cotton farmers in front of the Collectorate here on Monday. A large number of farmers from Sadashivapet madnal participated in the agitation.
With the crisis triggered by the attack of pink bollworms on cotton crop in Vidarbha and Marathwada region of Maharashtra becoming severe, the Opposition parties are now demanding Rs. 25,000 per acre as compensation for framers.
The Opposition parties have also said that the State government’s purchase of foodgrains, pulses and soyabean from farmers has been very poor. They have demanded that the farmers should at least get the Minimum Support Price for their produce.
The Leader of Opposition in Maharashtra Legislative Council, Dhananjay Munde, told reporters that a compensation of more than Rs. 25,000 is a must, and that he had personally written to the Chief Minister of Maharashtra, Devendra Fadnavis, when the Centre had warned about the pink bollworm attack, he said.
Procurement
Munde, who is a senior Nationalist Congress Party leader, said that figures of purchase from State government-run warehouses of foodgrains and soyabean are not very not very encouraging. Till date, at the government centres, only 2.16-lakh quintals of soyabean have been procured, out of the 357-lakh quintals produced in the State. Even the pronouncement of urad dal (black gram) is only 2-lakh quintal, while its productionis 14-lakh quintals. Moong dal’s (split green gram) procurement is even lower at only 39,000 kg, while production is at 13-lakh quintals.
The actual extent of cotton crop damage is still being evaluated in the State. The Chairman of Maharashtra government’s special task force on the agrarian crisis, Kishore Tiwari, has estimated the loss at Rs. 10,000-crore in Vidarbha and Marathwada.
The Chairman of State Agriculture Price Commission, Pasha Patel, told BusinessLine that the actual cotton crops losses are being still being evaluated and that the State government is willing to provide compensation to the farmers. Preliminary reports suggest that farmers in Marathwada are better covered under cotton crop insurance than those in Vidarbha, he said.
Patel suggested that the seed companies, who have been making profits over the years, must now take the lead and provide some monetary compensation to the cotton farmers.
State government to bear beneficiary contribution
The district handlooms and textiles department has asked powerloom weavers of Sircilla textile town to enrol their names for converged Group Insurance Scheme by December 15. In a press note issued on Monday, AD, handlooms and textiles, Ashok Rao said while the premium amount for Union government’s health insurance scheme (earlier called Janshree Bima Yojana) is Rs. 470 per person, the major portion would be borne by it (Rs. 290) and Life Insurance Corporation (Rs. 100). The beneficiary would have to pay the remaining Rs. 80.
The State government, however, decided to pay the beneficiary’s contribution, making the insurance policy free of cost. Weavers, in the 18 to 59 age group, just have to enrol their names to avail the insurance scheme. For the 18 to 50 age group, the family of a weaver would get Rs. 2 lakh in case of natural death, Rs. 4 lakh for accidental death, Rs. 1 lakh for partial disability and Rs. 2 lakh for complete disability. For the 51 to 59 age bracket, the insurance amount is a tad lower. The beneficiary’s family would Rs. 60,000 for natural death, Rs. 1.5 lakh for accidental death, Rs. 75,000 for partial disability and Rs. 1.5 lakh for complete disability.
Cotton of Kazakhstan varieties is being exported to eleven countries.
This was stated by the chairman of the board of the National Agrarian Scientific-Educational Center under the Kazakh Agriculture Ministry Askar Nametov, Kazinform reported. “In 1991 there were no own cotton varieties in Kazakhstan. Currently, ten varieties were created, five of which successfully passed tests. At present, the yield of raw cotton is 22-23 centners per hectare, although the potential of new domestic varieties is 38-40 centners per hectare,” he said. The task is to raise it by 30-40 percent, while improving the quality of cotton fiber, which will help to increase the competitiveness of cotton fiber and oil products, both on the external and domestic markets, according to Nametov. The cotton of domestic varieties is currently exported to 11 countries, including Russia, Belarus, Germany, Latvia, Moldova, China, Belgium, Iran, Ukraine, Italy and Korea, according to the chairman. He also added that at present about 160 varieties and hybrids of 25 species of Kazakh breeding have been allowed to use, of which 39 are varieties of potatoes and 103 types – of vegetables and cabbage crops.
More than 24 percent of the Kazakh population is employed in the agricultural sector. Family farms account for approximately 70 percent of land in Southern and South-eastern Kazakhstan, and account for an estimated 95 percent of total cotton production. While Kazakhstan is significantly larger than its Central Asian neighbors in terms of land area, its cotton production is relatively low due to the significance of grain cultivation and other food crops.
Cambodia recently urged global buyers to raise investment in its garment and footwear sector and to introduce new technologies to help modernise the industry. Commerce ministry secretary of state Ok Bung told envoys of global clothing brands and unions recently that low productivity is resulting in lower ranking for the country in the global value chain. Representatives from companies, such as Inditex, Debenhams, Kmart-Australia, H&M, Next, C&A and Primark, and international union federation IndustriALL were present at the meeting.
Issues now hampering the garment sector include high production costs, low productivity and access to a limited number of markets, said Ken Loo, secretary general of Garments Manufacturers Association of Cambodia (GMAC).
Frank Hoffer, executive director of non-profit organisation Action, Collaboration and Transformation (ACT), requested the ministry’s support to set up a workshop with buyers, unions, factory owners and government agencies to hear all sides and jointly prepare a strategy to guide development in the sector.
ACT is an initiative between international brands and retailers, manufacturers and trade unions to address the issue of living wages in the textile and garment supply chain. In 2016, Cambodia’s garment and footwear industry had 786 factories and a workforce of more than 700,000 people. The main export markets are the European Union, the United States, China, New Zealand and Japan.
They claim no role in pink bollworm infestation of cotton crop carrying BG II tech
Claiming that seed companies had no role in pink bollworm (PBW) infestation of cotton crop carrying BG II technology, the National Seed Association of India (NSAI) has asked Government of India to declare the two-gene trait of the genetically modified (GM) cotton seed as ineffective against PBW.
The seed industry body has also requested the Centre to direct the officials of states to register complaints made by farmers on pink boll worm menace according to the roles and responsibilities of seed companies and trait developers.
Seed companies say they can be held accountable only if their supplies do not conform to the quality and purity parameters prescribed by the authorities. However, they claim were also being held responsible for infestation of pink bollworm, something which the trait developer Monsanto was solely answerable for, according to NSAI.
The question of fixing the responsibility for crop losses in states like Maharashtra and Gujarat due to pink bollworm infestation further adds to the differences between the American biotechnology company and NSAI that often took opposite positions on a range of business matters, including the trait value.
“As per clause 5 of Cotton Seeds Price (Control) Order, the trait value towards the Bt cotton trait developed by the trait developer and the seed value towards the efforts of the seed company for hybrid development, seed production, marketing and distribution are clearly mentioned. The responsibility towards the performance of the trait shall, therefore, be on the trait developer, whereas the responsibility for the seed quality remains with the seed company,” NSAI executive director Kalyan B Goswami argued in a five-page letter to B Rajender, Joint Secretary(Seeds) of the Union Agriculture Ministry last week.
As early as in August, 2017, Union Minister of State for Agriculture Parshottam Rupala informed Lok Sabha that there was a sporadic incidence of pink bollworm damage in Maharashtra, Andhra Pradesh and Gujarat while Maharashtra government has already directed seed firms to pay a compensation of Rs 36.83 lakh to farmers. Last month Maharashtra government has requested the Centre to de-notify the BG ll strain on the grounds that it has lost its resistance to pink bollworm, according to the news reports.
A spokesperson of Monsanto, however, said that resistance was a natural and evolutionary adaptation of pests to stress factors and that the resistance management was a joint responsibility of all the stake-holders involved with cotton crop-farmers, seed companies, technology providers, trade, end user industry, regulatory bodies,state agriculture universities, and government departments.
“Bollgard ll technology continues to substantially fulfill its intended function of controlling a majority of lepidopteron pests including American bollworm, which is the primary pest, thereby providing farmers with great benefits. To ensure that the primary pests do not develop resistance there is an immediate need to help farmers adopt integrated pest management and refuge practices,” Monsanto spokesperson stated in response to queries over the seed industry body’s contentions with regard to the failure of trait performance of BG ll.
In his letter NSAI executive director Goswami argued that the solution to the whole issue lies in the declaration of zero trait value to BG ll strain as was done in case of BG l technology in similar circumstances and recommend to farmers to spray pesticides to control PBW. “If the DACFW (the Department of Agriculture) proposes to recommend a trait value for two-gene trait, in spite of the above facts, it may be mentioned in the price order clearly that it is not effective against PBW, so that we can accordingly represent to the state agricultural department officials, who regulate the seed quality and trade,” Goswami said.
According to Monsanto spokesperson, a recent meeting undertaken by the Indian Council of Agriculture Research (ICAR), Ministry of Agriculture & Farmers Welfare, decided ‘to continue the use of Bt cotton BG ll as per existing guidelines’.
Punjab Agricultural University, Ludhiana, and Bayer Crop Science (BCS) jointly organised cotton field days and demonstrated good agricultural practices at villages Karamgarh Autabali (Mansa) and Bajak (Bathinda) in second week of November.
The project was initiated with an objective of enhancing cotton productivity through integrated crop solutions under public private partnership mode in the key cotton growing districts viz. Bathinda, Mansa, Sri Muktsar Sahib and Fazilka. The demo farmers Lakhvinder Singh and Baldev Singh shared that the adoption of good agricultural practices has earned them extra profit of more than Rs 6,000 per acre compared to their conventional practices.
Dr Biswajit Chowdhury, Head, Crop Management Field Crops, BCS, laid emphasis on the importance and the need for working in public-private partnership mode in helping the farming community.
He appreciated the farmers for the adoption of ‘seed to harvest’ technology which minimises the cost and enhances profit. Dr MS Bhullar, Sr Agronomist and PI of the project said the cotton training workshops and live field demonstrations conducted under the project have resulted in higher cotton yields and economic benefits to the farmers. Dr Vijay Kumar, Sr Entolmologist, highlighted the importance of selection of right cotton variety, and safe and judicious use of pesticides with right method of application to secure good cotton production. Dr Jatinder Singh Brar, Dr Gurmeet Singh Dhillon from KVK Bathinda, and Dr Amandeep Singh Brar from KVK Mansa also addressed the farmers.
