COTTON CULTIVATION IN INDIA - ECONOMY

Cotton Cultivation in India - ECONOMY

News: As per the Cotton Association of India, India’s cotton cultivation has declined and will be down by 10% to 12% this season compared with the last one.

 

What’s in the news?

  • It is due to the falling crop yields per hectare. 
    • The area under cotton last year was 127 lakh hectares. This has dropped to 108 lakh hectares so far this year.
  • The crop size has reduced in the northern region (Punjab, Rajasthan, etc) by almost 35% because of pink bollworm infestation. 
  • While in Telangana, it has shrunk by 7% and in Gujarat, the area reduced by 13% to 15% as farmers shifted to groundnut and tur dhal cultivation.
  • The carry forward stock for the next season could be nil. Further, the government has increased the Minimum Support Price for raw cotton by ₹500 per quintal for 2024-2025 season.
    • This is likely to raise cotton prices next season, which begins in October.

 

Cotton Industry in India

  • Cotton is one of the most important commercial crops cultivated in India and accounts for around 23% of the total global cotton production. 
  • Employment: It plays a major role in sustaining the livelihood of an estimated 6 million cotton farmers and 40-50 million people engaged in related activities such as cotton processing & trade. 
  • The Indian Textile Industry consumes a diverse range of fibres and yarns and the ratio of use of cotton to non – cotton fibres in India is around 60:40 whereas it is 30:70 in the rest of the world. 
  • Cotton is also one of the largest contributors to India’s net foreign exchange by way of exports in the form of raw cotton, intermediate products such as yarn and fabrics to ultimate finished products in the form of garments, made ups and knitwear. 
  • Due to its economic importance in India, it is also termed as “White-Gold”.

 

Production and Consumption of Cotton in India

  • India is the only country which grows all four species of cotton G. Arboreum & G. Herbaceum (Asian cotton), G. Barbadense (Egyptian cotton) and G. Hirsutum (American Upland cotton). 
  • Majority of cotton production comes from 9 major cotton growing states, which are grouped into three diverse agro-ecological zones, as under:
    • Northern Zone – Punjab, Haryana and Rajasthan 
    • Central Zone – Gujarat, Maharashtra and Madhya Pradesh 
    • Southern Zone – Telangana, Andhra Pradesh and Karnataka. 
    • Apart from the above the cotton is also grown in the state of Odisha and Tamil Nadu. 
  • India is having 2nd place in the world with estimated production of 5.84 Million Metric Tonnes during cotton season 2022-23 i.e. 23.83% of world cotton production. 
  • India is also the 2nd largest consumer of cotton in the world with estimated consumption of 22.24% of world cotton consumption.

 

Climate & Soil Requirement

  • Cotton is a semi-xerophyte, is grown in tropical & sub tropical conditions. 
  • A minimum temperature of 15°C is required for better germination at field conditions.
    • The optimum temperature for vegetative growth is 21-27°C & it can tolerate temperature to the extent of 43°C but temperature below 21°C is detrimental to the crop. 
  • Cotton is grown on a variety of soils ranging from well drained deep alluvial soils in the north to black clayey soils of varying depth in central region and in black and mixed black and red soils in the south zone. 
  • Cotton is semi-tolerant to salinity and sensitive to water logging and thus prefers well drained soils.

 

Major Constraints in Cotton Production

  • Nearly 65 percent cotton area is rainfed, mainly in the Central and Southern States.
  • Cotton crop is highly prone to pests and diseases.
  • Wide fluctuation in cotton prices, inadequate market infrastructure and cotton export policy.
  • Productivity: While the world average is 800 kg per hectare, it is almost half that in India, at about 480 kg a hectare. 
  • Farmer’s Income: Indian farmers earn ₹90,000 per hectare a season compared with ₹5 lakhs that their Australian counterparts earn.

 

Government Initiatives

  • Cotton Corporation of India (CCI): The CCI plays a crucial role in the cotton industry by procuring and storing cotton, ensuring fair prices, and stabilizing the market. It also helps in the development of cotton marketing infrastructure.
  • Minimum Support Price (MSP): Every year before the commencement of the Cotton Year (Oct. to Sept.), the Ministry of Agriculture based on the recommendations of Advisory Board viz., Commission for Agricultural Costs and Prices (CACP) fixes the MSP with a view to give incentives to the Cotton farmers of the country.
  • Mobile App “Cott-Ally”: CCI developed an exclusive mobile app, “Cott-Ally” for cotton farmers in their regional language.
    • This mobile app also helps CCI to have direct interaction and outreach with the cotton farmers. 
  • Branding of Indian Cotton: Brand name for Indian cotton was launched on the occasion of World Cotton Day as “Kasturi Cotton India” to attain the objective of making India Atmanirbhar and vocal for local in the field of cotton.
    • Indian cotton has now been endowed with a brand and a logo and as a premium cotton which will represent its’ whiteness, softness, purity, luster and uniqueness in the national and international market. 
  • Integrated Cotton Development Programme (ICDP): This program aims to enhance cotton productivity through a comprehensive approach, including better agronomic practices, pest management, and farmer education.

 

Source: https://www.thehindu.com/business/falling-yields-diseases-driving-farmers-away-from-cotton/article68506007.ece#:~:text=India's%20cotton%20cultivation%20has%20declined,falling%20crop%20yields%20per%20hectare.