Chennai: Cotton rates in the domestic market are set to fall with the Union Government removing the 14 per cent duty on import of cotton yielding to the long-time demand from the textile industry. Welcoming the decision of the Centre, Mr D.K. Nair, Secretary-General of the Confederation of Indian Textile Industry (CITI), said that this declaration will have a psychological impact and prices of cotton will naturally come down. India now imports cotton from the US, Brazil and South African nations. Cotton imports have fell from around 17 lakh bales (of 170 kg ) in 2002-03 to 5 lakh bales in 2006-07. Imports are hoped to be around 6.5 lakh bales this season. Exports totaled 58 lakh bales in 2006-07 against 47 lakh bales in 2005-06. Cotton output was at a record high of 270 lakh bales in 2006-07 cotton season and is likely to touch 315 lakh bales in the current season.
Showing posts with label Cotton. Show all posts
Showing posts with label Cotton. Show all posts
Thursday, July 10, 2008
Wednesday, July 2, 2008
Is Ban On Cotton Export Justified? - July 2, 2008
Mumbai: The domestic cotton textiles industry has in recent weeks intensified its efforts to get cotton exports banned. From its own perspective, the industry may be justified in demanding a prohibition on exports as internal prices have risen to levels uneconomic for the industry.
The mills have also sought duty-free import of cotton from abroad. Currently, there is a 10 per cent customs duty. The Ministry of Textiles is reportedly in the process of examining a ban on exports and allowing duty-free imports. The intention is to bring down high domestic prices of cotton.
Word is also being spread that middlemen or traders have been hoarding cotton and benefiting from rising prices. What should the government do? First, it should not be swayed by lobby pressure. There are several dimensions to the issue of high cotton prices and there are several stakeholders in the cotton sector; and each one deserves a good deal.
Rising output
Admittedly, in the current season (2007-08), out of the estimated production of nearly 315 lakh bales (of 170 kilograms each), as much as 80 lakh bales or close to a quarter have been shipped out. This is unprecedented in the history, albeit recent history, of Indian cotton.
Rising domestic output and attractive global prices have ensured such an extra-ordinary performance. Cotton growers have been the direct beneficiaries of this level of exports and the consequent rise in domestic prices.
Unlike many field crops, cotton pickings are spread over a few months in different regions of the country. Arrivals usually peak during December-January months; that is the time prices are the lowest. Indeed, given the level of production, purchases by exporters have ensured that there was no collapse in market rates. Transmission of price signals also allows growers in different regions to plan their marketing and obtain remunerative prices.
One of the major reasons for sustained increase in the country’s cotton production in last 3-4 years is the positive price signal that growers have been able to obtain. Exports have also helped establish Indian cotton in the global marketplace.
There is, of course, scope for improving upon the export performance in terms of price and quality. But that is a different exercise altogether, not connected with the demand for a ban on export itself.
Two issues
Is a ban on cotton export justified? There are two issues to be considered. First is that the cotton picking season has come to an end and almost 90 per cent of the crop has been marketed. At this point of time, a prohibition on export will not affect growers significantly.
However, a ban will surely send unwarranted negative signals to the world market about India’s unsteady trade policy. Already the country has attracted flak for banning export of commodities like rice. Also, a negative trade policy (ban on export) and consequent price impact may discourage some growers from planting cotton.
Until about three months ago, the domestic textile industry complained about the adverse effects of a firming rupee on textile exports. Now that the rupee value has eroded by as much as 10 per cent, it seems to be whipping up the issue of high cotton prices.
A ban on export may have a very limited impact on the domestic market. Most of the export shipments have already been effected. The volume of pending commitments is reported to be small. As the rupee has appreciated and the rupee realisation of exports would be higher, instead of an export ban, imposition of a modest export duty may be considered.
As for duty-free imports demanded by the industry, this has been a long pending one. There is no merit in this because, for export production, duty-free imports of raw material are already allowed. Textile mills are at liberty to import cotton at zero-duty for producing textile products for the export market.
Lessons from traders
Another objection relates to hoarding by middlemen. Middlemen or traders have been able to read the market correctly, well in advance, and have purchased cotton for subsequent sale to mills or exporters. If traders have a positive price outlook and are able to take savvy trading positions by buying low at the time of harvest, why should mills not follow?
There may be something wrong with the commercial intelligence capability of the mills. Nothing prevents the textile mills from procuring their raw material requirement at the time of harvest or heavy arrivals during the peak marketing season.
Mills should build capacity to compete with traders in the marketplace. For the domestic cotton textile mills a great opportunity is emerging for establishing backward linkages. If they want to have captive raw material sourcing, contract farming is the only way forward. The industry has a lot of homework to do instead of lobbying the government for negative trade policies.
The mills have also sought duty-free import of cotton from abroad. Currently, there is a 10 per cent customs duty. The Ministry of Textiles is reportedly in the process of examining a ban on exports and allowing duty-free imports. The intention is to bring down high domestic prices of cotton.
Word is also being spread that middlemen or traders have been hoarding cotton and benefiting from rising prices. What should the government do? First, it should not be swayed by lobby pressure. There are several dimensions to the issue of high cotton prices and there are several stakeholders in the cotton sector; and each one deserves a good deal.
Rising output
Admittedly, in the current season (2007-08), out of the estimated production of nearly 315 lakh bales (of 170 kilograms each), as much as 80 lakh bales or close to a quarter have been shipped out. This is unprecedented in the history, albeit recent history, of Indian cotton.
Rising domestic output and attractive global prices have ensured such an extra-ordinary performance. Cotton growers have been the direct beneficiaries of this level of exports and the consequent rise in domestic prices.
Unlike many field crops, cotton pickings are spread over a few months in different regions of the country. Arrivals usually peak during December-January months; that is the time prices are the lowest. Indeed, given the level of production, purchases by exporters have ensured that there was no collapse in market rates. Transmission of price signals also allows growers in different regions to plan their marketing and obtain remunerative prices.
One of the major reasons for sustained increase in the country’s cotton production in last 3-4 years is the positive price signal that growers have been able to obtain. Exports have also helped establish Indian cotton in the global marketplace.
There is, of course, scope for improving upon the export performance in terms of price and quality. But that is a different exercise altogether, not connected with the demand for a ban on export itself.
Two issues
Is a ban on cotton export justified? There are two issues to be considered. First is that the cotton picking season has come to an end and almost 90 per cent of the crop has been marketed. At this point of time, a prohibition on export will not affect growers significantly.
However, a ban will surely send unwarranted negative signals to the world market about India’s unsteady trade policy. Already the country has attracted flak for banning export of commodities like rice. Also, a negative trade policy (ban on export) and consequent price impact may discourage some growers from planting cotton.
Until about three months ago, the domestic textile industry complained about the adverse effects of a firming rupee on textile exports. Now that the rupee value has eroded by as much as 10 per cent, it seems to be whipping up the issue of high cotton prices.
A ban on export may have a very limited impact on the domestic market. Most of the export shipments have already been effected. The volume of pending commitments is reported to be small. As the rupee has appreciated and the rupee realisation of exports would be higher, instead of an export ban, imposition of a modest export duty may be considered.
As for duty-free imports demanded by the industry, this has been a long pending one. There is no merit in this because, for export production, duty-free imports of raw material are already allowed. Textile mills are at liberty to import cotton at zero-duty for producing textile products for the export market.
Lessons from traders
Another objection relates to hoarding by middlemen. Middlemen or traders have been able to read the market correctly, well in advance, and have purchased cotton for subsequent sale to mills or exporters. If traders have a positive price outlook and are able to take savvy trading positions by buying low at the time of harvest, why should mills not follow?
There may be something wrong with the commercial intelligence capability of the mills. Nothing prevents the textile mills from procuring their raw material requirement at the time of harvest or heavy arrivals during the peak marketing season.
Mills should build capacity to compete with traders in the marketplace. For the domestic cotton textile mills a great opportunity is emerging for establishing backward linkages. If they want to have captive raw material sourcing, contract farming is the only way forward. The industry has a lot of homework to do instead of lobbying the government for negative trade policies.
Tuesday, May 27, 2008
Cotton Production Outlook For The Next Season
Chennai: Cotton production outlook for the next season (August 2008-July 2009) has been kept unchanged at a record 330 lakh bales (of 170 kg each). According to Cotlook, the production estimate is against this year’s 315 lakh bales.
Second largest porducer
This also means for the third consecutive year, India will be the second largest cotton producer in the world, having overtaken the US three years ago.
Still, it will be nowhere near China’s projected production of 450 lakh bales, up marginally from this year.
Cotlook, reviewing its production estimated from April, sees lower production in Africa Franc zone and others by nearly 75,000 tonnes.
The significant feature of next year’s cotton production outlook is that the over one million tonnes fall in the US output is set to be offset by countries such as Australia, Pakistan, Brazil and Africa Franc zone.
Australia, in particular, is set to nearly treble its output to 3.4 lakh tonnes from 1.26 lakh tonnes this year.
Global production
Global cotton production for next season is now estimated by Cotlook at 25.18 million tonnes (mt) against last month’s projection of 26.26 mt and this year’s 25.57 mt.
Subsequently, Cotlook also sees global consumption declining by 59,000 tonnes next year to 26.25 mt against initial estimates of 26.31 mt and last years 25.99 mt.
That will lead to the carryover stocks declining 1.06 million tonnes from the earlier projection of 1.04 mt.
This year, the stocks are expected to decline by 4.18 mt.
Consumption
On the consumption side, Indian consumption is seen increasing to 430 lakh bales up from 419 lakh bales this year. China’s consumption is expected to increase to around 640 lakh bales from 627 lakh bales this year. On the other side, offtake in the US is projected to decrease to 9.36 mt from earlier estimated of 9.58 mt and last year’s 10.01 mt.
Stating that planting was nearing completion in the Northern Hemisphere, Cotlook said, however, weather, especially the approaching south-west monsoon into India would hold the key.
Second largest porducer
This also means for the third consecutive year, India will be the second largest cotton producer in the world, having overtaken the US three years ago.
Still, it will be nowhere near China’s projected production of 450 lakh bales, up marginally from this year.
Cotlook, reviewing its production estimated from April, sees lower production in Africa Franc zone and others by nearly 75,000 tonnes.
The significant feature of next year’s cotton production outlook is that the over one million tonnes fall in the US output is set to be offset by countries such as Australia, Pakistan, Brazil and Africa Franc zone.
Australia, in particular, is set to nearly treble its output to 3.4 lakh tonnes from 1.26 lakh tonnes this year.
Global production
Global cotton production for next season is now estimated by Cotlook at 25.18 million tonnes (mt) against last month’s projection of 26.26 mt and this year’s 25.57 mt.
Subsequently, Cotlook also sees global consumption declining by 59,000 tonnes next year to 26.25 mt against initial estimates of 26.31 mt and last years 25.99 mt.
That will lead to the carryover stocks declining 1.06 million tonnes from the earlier projection of 1.04 mt.
This year, the stocks are expected to decline by 4.18 mt.
Consumption
On the consumption side, Indian consumption is seen increasing to 430 lakh bales up from 419 lakh bales this year. China’s consumption is expected to increase to around 640 lakh bales from 627 lakh bales this year. On the other side, offtake in the US is projected to decrease to 9.36 mt from earlier estimated of 9.58 mt and last year’s 10.01 mt.
Stating that planting was nearing completion in the Northern Hemisphere, Cotlook said, however, weather, especially the approaching south-west monsoon into India would hold the key.
Thursday, May 1, 2008
India To Remain At No 2 In Cotton Chart
AHMEDABAD: India is expected to retain its current position as the second largest producer, user and exporter of cotton in the new season beginning in August, says the Washington-based International Cotton Advisory Committee (ICAC).
India overtook the US to occupy the number two position after China during the 2006-07 cotton season, says the ICAC. According to ICAC’s analysis of the current global cotton situation, India does not face any challenge to its position as American farmers are shifting to other crops like corn. The ICAC, in which India is a founding member, is an international organisation dedicated to promoting co-operation in cotton trade.
Agreeing with the projection of the Cotlook Index, the ICAC said: “India is expected to continue in the same position in the next season as well, as in addition to US farmers, growers in other countries are also inclined to shift to the production of soyabeans and wheat besides corn.” Cotlook is a Britain-based organisation that provides international cotton market information and analysis on natural fibre.
The ICAC noted that India has so far produced about 4.7 million tonnes (MT) of cotton in the current season as compared to 4.7 MT of the US. This season, India’s output has been pegged at 5.3 MT as against 4.14 MT of the US. According to Cotlook’s estimates, India’s production next season is likely to touch 5.6 MT while that of the US would decline further to 3.2 MT.
China continues to be the number one in production, consumption and imports. This despite a fall of over 100,000 tonnes in cotton production. Beijing is estimated to produce 7.6 MT cotton this season against last year’s 7.7 MT.The fall in Chinese cotton crop has led to increased exports by other countries.
The world cotton exports are expected to rise by 10% to 9.1 MT from last season’s 8.2 MT. The ICAC has also forecast that the cotton prices will go up in the international market because of an expected decrease in the stocks-to-mill use ratio in the world.
India overtook the US to occupy the number two position after China during the 2006-07 cotton season, says the ICAC. According to ICAC’s analysis of the current global cotton situation, India does not face any challenge to its position as American farmers are shifting to other crops like corn. The ICAC, in which India is a founding member, is an international organisation dedicated to promoting co-operation in cotton trade.
Agreeing with the projection of the Cotlook Index, the ICAC said: “India is expected to continue in the same position in the next season as well, as in addition to US farmers, growers in other countries are also inclined to shift to the production of soyabeans and wheat besides corn.” Cotlook is a Britain-based organisation that provides international cotton market information and analysis on natural fibre.
The ICAC noted that India has so far produced about 4.7 million tonnes (MT) of cotton in the current season as compared to 4.7 MT of the US. This season, India’s output has been pegged at 5.3 MT as against 4.14 MT of the US. According to Cotlook’s estimates, India’s production next season is likely to touch 5.6 MT while that of the US would decline further to 3.2 MT.
China continues to be the number one in production, consumption and imports. This despite a fall of over 100,000 tonnes in cotton production. Beijing is estimated to produce 7.6 MT cotton this season against last year’s 7.7 MT.The fall in Chinese cotton crop has led to increased exports by other countries.
The world cotton exports are expected to rise by 10% to 9.1 MT from last season’s 8.2 MT. The ICAC has also forecast that the cotton prices will go up in the international market because of an expected decrease in the stocks-to-mill use ratio in the world.
Tuesday, April 22, 2008
India Consolidates Its Position As 2nd Biggest Cotton Grower
Chennai: For the second year in succession, India will be second-largest producer, user and exporter of cotton. Last season (August 2006 –July 2007), India had overtaken the US to emerge as second-largest producer of cotton, after China. And if one goes by the projection of Cotlook, India is likely to be the number two for the third year the next season.
This season, with US cotton growers shifting to other crops such as corn, India has emerged as a firm number 2 producer of the natural fibre. Last year, India produced 4.746 million tonnes (279 lakh bales of 170 kg), while the US production was 4.7 million tonnes (mt). This year, the Indian production has been pegged at 5.34 mt (313.76 lakh bales) against the US output of 4.14 mt.
According to Cotlook’s estimates, production next season is likely to be 330 lakh bales or 5.61 mt in India, whilst that of the US is seen declining further to 3.19 mt.
Better prices
Indian production is seen up in view of better prices for growers during the last couple of years and increasing use of Bt cotton, which now makes up over 65 per cent of the total area under cotton. Production in the US and other growing countries, on the other hand, is estimated lower in view growers shifting to soyabeans, corn and wheat.
China continues to be the number one in production, consumption and imports. This is despite a fall of over one lakh tonnes in production from last year. Beijing is estimated to produce 7.62 mt cotton this season against last year’s 7.72 mt. Cotlook sees production rebounding to 7.65 mt next season.
On the exports front, shipments from the country this year are projected at 1.33 mt (78 lakh bales) against 1.09 mt (59 lakh bales). The US continues to be the largest exporter, shipping out 3.15 mt cotton (2.83 mt).
China and India clearly lead the pack on the consumption front. In fact, higher consumption by China sees it being the top importer despite being the largest producer. Imports by China are seen at 2.72 mt against 2.30 mt last year. In fact, Pakistan has emerged as the third largest cotton importer after Turkey. It will import 0.71 mt cotton against 0.5 mt last season.
Consumption
China’s cotton consumption, on the other hand, is projected to increase to 11.54 mt against 10.88 mt last year. Indian consumption is seen at 3.94 mt, the same as last year.
The ending or carryover stocks this season are seen topping 1.75 mt (100 lakh bales) against 1.63 mt (90 lakh bales). In contrast, the ending stocks are estimated lower in China at 3.62 mt (4.07 mt last season) and the US at 2.04 mt (2.06 mt).
Despite higher ending stocks in the country, there should be no cause for worry since global ending stocks are projected lower at 12.88 mt (13.32 mt).
In fact, Cotlook has pruned its cotton production estimates for 2008-09 season by 0.357 mt. This is because production in China is now estimated at 7.65 mt against 7.75 mt, while in the US, it is seen at 3.12 mt against 3.197 mt.
In view of the pruning, global production is projected at 26.31 mt against 26.42 mt made last month. The output, however, is likely to be higher than this season’s 26.03 mt.
Cotlook said the global sub-prime crisis continued to take toll on consumption prospects. But the net drawdown from the stocks was likely to be higher and over one mt of cotton would be wiped off the global balance sheet in view of the pruned estimated.
The agency sees India’s consumption rising to 7.31 mt against 7.13 mt this season.
Meanwhile, the US Department of Agriculture said consumption this season was seen up 1.4 per cent globally.
It said use by spinning mills in China, India, Pakistan and Turkey had increased sharply over the years.
China and India alone account for 57 per cent of the global cotton consumption, it said. The US agency also projected stock depletion of 2.5 per cent, which is seen keeping the prices firm in the short to medium-term.
This season, with US cotton growers shifting to other crops such as corn, India has emerged as a firm number 2 producer of the natural fibre. Last year, India produced 4.746 million tonnes (279 lakh bales of 170 kg), while the US production was 4.7 million tonnes (mt). This year, the Indian production has been pegged at 5.34 mt (313.76 lakh bales) against the US output of 4.14 mt.
According to Cotlook’s estimates, production next season is likely to be 330 lakh bales or 5.61 mt in India, whilst that of the US is seen declining further to 3.19 mt.
Better prices
Indian production is seen up in view of better prices for growers during the last couple of years and increasing use of Bt cotton, which now makes up over 65 per cent of the total area under cotton. Production in the US and other growing countries, on the other hand, is estimated lower in view growers shifting to soyabeans, corn and wheat.
China continues to be the number one in production, consumption and imports. This is despite a fall of over one lakh tonnes in production from last year. Beijing is estimated to produce 7.62 mt cotton this season against last year’s 7.72 mt. Cotlook sees production rebounding to 7.65 mt next season.
On the exports front, shipments from the country this year are projected at 1.33 mt (78 lakh bales) against 1.09 mt (59 lakh bales). The US continues to be the largest exporter, shipping out 3.15 mt cotton (2.83 mt).
China and India clearly lead the pack on the consumption front. In fact, higher consumption by China sees it being the top importer despite being the largest producer. Imports by China are seen at 2.72 mt against 2.30 mt last year. In fact, Pakistan has emerged as the third largest cotton importer after Turkey. It will import 0.71 mt cotton against 0.5 mt last season.
Consumption
China’s cotton consumption, on the other hand, is projected to increase to 11.54 mt against 10.88 mt last year. Indian consumption is seen at 3.94 mt, the same as last year.
The ending or carryover stocks this season are seen topping 1.75 mt (100 lakh bales) against 1.63 mt (90 lakh bales). In contrast, the ending stocks are estimated lower in China at 3.62 mt (4.07 mt last season) and the US at 2.04 mt (2.06 mt).
Despite higher ending stocks in the country, there should be no cause for worry since global ending stocks are projected lower at 12.88 mt (13.32 mt).
In fact, Cotlook has pruned its cotton production estimates for 2008-09 season by 0.357 mt. This is because production in China is now estimated at 7.65 mt against 7.75 mt, while in the US, it is seen at 3.12 mt against 3.197 mt.
In view of the pruning, global production is projected at 26.31 mt against 26.42 mt made last month. The output, however, is likely to be higher than this season’s 26.03 mt.
Cotlook said the global sub-prime crisis continued to take toll on consumption prospects. But the net drawdown from the stocks was likely to be higher and over one mt of cotton would be wiped off the global balance sheet in view of the pruned estimated.
The agency sees India’s consumption rising to 7.31 mt against 7.13 mt this season.
Meanwhile, the US Department of Agriculture said consumption this season was seen up 1.4 per cent globally.
It said use by spinning mills in China, India, Pakistan and Turkey had increased sharply over the years.
China and India alone account for 57 per cent of the global cotton consumption, it said. The US agency also projected stock depletion of 2.5 per cent, which is seen keeping the prices firm in the short to medium-term.
Thursday, April 10, 2008
Global Cotton Prices To Rise 8% In FY09 On Rising Demand
NEW DELHI: Cotton prices in the global market are likely to surge by over 8% to 80 cents per pound in 2008-09, triggered by the price trend of competing crops like soyabeans, corn, wheat and other oilseeds, the Washington-based International Cotton Advisory Committee (ICAC) said.
Apart from a rise in prices of competing crops, speculative trading and commodity investment funds would also affect the cotton price movement.
Prices during 2006-07 stood at 59.15 cents per pound.
“The fundamentals of cotton supply and use alone will suggest a season average cotlook a index of less than 70 cents per pound in 2007-08. However, based on trends in prices during the first eight months of 2007-08, it is obvious that prices will be higher,” ICAC noted.
According to the ICAC data, cotton production is estimated to go up by 3.2% to 123.4 million bales during 2008-09 against 119.6 million bales in the last year. Consumption is projected at 126.2 million bales, up by 1.3% from previous year.
As a result of the gap between world production and consumption, world ending stocks are estimated to decline for the second season in the current year, ICAC said, adding that the ending stocks are expected to be less by 2.8 million bales at 50.3 million bales in 2008-09. Meanwhile, the world cotton area is expected to remain relatively stable in 2008-09 at 33.8 million hectares.
However, cotton harvested area in the US is projected to decline by a further 15% in current season as a result of surging prices for soyabeans, corn, wheat and other oilseeds.
Apart from a rise in prices of competing crops, speculative trading and commodity investment funds would also affect the cotton price movement.
Prices during 2006-07 stood at 59.15 cents per pound.
“The fundamentals of cotton supply and use alone will suggest a season average cotlook a index of less than 70 cents per pound in 2007-08. However, based on trends in prices during the first eight months of 2007-08, it is obvious that prices will be higher,” ICAC noted.
According to the ICAC data, cotton production is estimated to go up by 3.2% to 123.4 million bales during 2008-09 against 119.6 million bales in the last year. Consumption is projected at 126.2 million bales, up by 1.3% from previous year.
As a result of the gap between world production and consumption, world ending stocks are estimated to decline for the second season in the current year, ICAC said, adding that the ending stocks are expected to be less by 2.8 million bales at 50.3 million bales in 2008-09. Meanwhile, the world cotton area is expected to remain relatively stable in 2008-09 at 33.8 million hectares.
However, cotton harvested area in the US is projected to decline by a further 15% in current season as a result of surging prices for soyabeans, corn, wheat and other oilseeds.
Thursday, February 21, 2008
Bollworm May Be Developing Resistance To Bt Cotton
Mumbai: Even as life science companies in seed business and vocal lobbyists for pro-genetically modified (GM) crops combine to make propagandist noises about the goodness of the technology and rapid spread of area under GM crops worldwide comes the news that pests are slowly developing resistance to transgenic crops. Run-up to Budget 2008-09
Currently, corn (maize), soyabean and cotton are the major field crops in which transgenic varieties have been commercialised. Cotton was the first major field GM crop to go commercial in 1996 in the US. Incidentally, the US is the world’s largest producer of soyabean and corn.
Gene from a bacterium - Bacillus thuringiensis (Bt) - is inserted in the cottonseed as a result of which the plant repels bollworm attack by secreting a protein-based toxin that kills the insect and saves the plant.
Survey findings
The latest is that reports, based on extensive research, emanating from the US suggest that pests may be in the process of evolving resistance to modified crops. A study of the Bt Cotton crop by researchers in the US has revealed that the bollworm – which is widely known to attack cotton boll and inflict losses – were slowly developing immunity.
Reports in the western press suggest the University of Arizona found resistant form of bollworm caterpillar in a dozen fields in the southern states of Mississippi and Arkansas between 2003 and 2006. Until last year, the US was the world’s second largest cotton producer. It continues to be a major exporter with over 70 per cent of output destined for overseas markets.
Shrinking acreage
However, area under cotton has begun to shrink following competition for acreage from crops such as corn, soyabean and wheat.
Coming about 7-8 years after commercialisation of Bt. Cotton, the survey findings of evolving resistance are sure to not only cause concern, but also set alarm bells ringing in major cotton growing countries that have embraced the technology.
In India, GM-cotton was commercialised in 2002. Since then, cotton output has surged by leaps and bounds year after year; and in 2007 it stood at over 300 lakh bales. Over 50 per cent of the country’s acreage under cotton (90 lakh hectares) is accounted for GM seeds.
The technology has delivered, so far. It is possible some kind of fatigue could be setting in? If the bollworm pest is seen developing resistance in the US, a country where cultivation is highly organised, land is well demarcated and farming systems are automated/ mechanised, there is no reason to believe it may not happen in India.
Indeed, it would be almost impossible to isolate area and control the pest in our country given the nature of agriculture - fragmented lands and millions of growers.
It is necessary for the Government, the scientists and the industry to work together to initiate studies to ascertain the status of pest resistance in our country. When we embrace technologies from abroad, we can ill-afford to overlook related developments there.
India is today the world’s second largest producer of cotton and a very large exporter. It has emerged as a force to reckon with in the global cotton sector.
Indian cotton growers are small. Crops lost to pests that have developed resistance can have devastating effect on our rural economy. The way forward is to closely monitor the situation and initiate remedial measures.
Currently, corn (maize), soyabean and cotton are the major field crops in which transgenic varieties have been commercialised. Cotton was the first major field GM crop to go commercial in 1996 in the US. Incidentally, the US is the world’s largest producer of soyabean and corn.
Gene from a bacterium - Bacillus thuringiensis (Bt) - is inserted in the cottonseed as a result of which the plant repels bollworm attack by secreting a protein-based toxin that kills the insect and saves the plant.
Survey findings
The latest is that reports, based on extensive research, emanating from the US suggest that pests may be in the process of evolving resistance to modified crops. A study of the Bt Cotton crop by researchers in the US has revealed that the bollworm – which is widely known to attack cotton boll and inflict losses – were slowly developing immunity.
Reports in the western press suggest the University of Arizona found resistant form of bollworm caterpillar in a dozen fields in the southern states of Mississippi and Arkansas between 2003 and 2006. Until last year, the US was the world’s second largest cotton producer. It continues to be a major exporter with over 70 per cent of output destined for overseas markets.
Shrinking acreage
However, area under cotton has begun to shrink following competition for acreage from crops such as corn, soyabean and wheat.
Coming about 7-8 years after commercialisation of Bt. Cotton, the survey findings of evolving resistance are sure to not only cause concern, but also set alarm bells ringing in major cotton growing countries that have embraced the technology.
In India, GM-cotton was commercialised in 2002. Since then, cotton output has surged by leaps and bounds year after year; and in 2007 it stood at over 300 lakh bales. Over 50 per cent of the country’s acreage under cotton (90 lakh hectares) is accounted for GM seeds.
The technology has delivered, so far. It is possible some kind of fatigue could be setting in? If the bollworm pest is seen developing resistance in the US, a country where cultivation is highly organised, land is well demarcated and farming systems are automated/ mechanised, there is no reason to believe it may not happen in India.
Indeed, it would be almost impossible to isolate area and control the pest in our country given the nature of agriculture - fragmented lands and millions of growers.
It is necessary for the Government, the scientists and the industry to work together to initiate studies to ascertain the status of pest resistance in our country. When we embrace technologies from abroad, we can ill-afford to overlook related developments there.
India is today the world’s second largest producer of cotton and a very large exporter. It has emerged as a force to reckon with in the global cotton sector.
Indian cotton growers are small. Crops lost to pests that have developed resistance can have devastating effect on our rural economy. The way forward is to closely monitor the situation and initiate remedial measures.
Saturday, February 16, 2008
Estimate Cotton Crop Accurately
Coimbatore: Indian Spinning Mill owners Association (ISMA) has asked the Centre to facilitate correct estimation of the domestic cotton production so as to fix the surplus available for exports.
The association has also suggested for assessing the actual working spindle-age and the correct estimation of the volume of fabric produced in the country.
LACK OF POLICY SUPPORT
In a representation to the Prime Minister, the ISMA President, R. Chinniayan, said the current crisis facing the textile industry was partly due to lack of policy support from the Government.
He wanted the shortfall in the raw material supply situation to the textile industry, namely cotton production, be addressed by encouraging cotton production through better seed varieties. Run-up to Budget 2008-09
Sufficient funds should be allocated to the agricultural R&D for seed development.
Check on exports
Chinniayan also highlighted the need for enabling the handloom, powerloom and hosiery sectors consume available cotton yarn supplies in the market.
Though protecting the domestic cotton growers could not be ignored, efforts should be made to prevent indiscriminate export of cotton to countries s
The association has also suggested for assessing the actual working spindle-age and the correct estimation of the volume of fabric produced in the country.
LACK OF POLICY SUPPORT
In a representation to the Prime Minister, the ISMA President, R. Chinniayan, said the current crisis facing the textile industry was partly due to lack of policy support from the Government.
He wanted the shortfall in the raw material supply situation to the textile industry, namely cotton production, be addressed by encouraging cotton production through better seed varieties. Run-up to Budget 2008-09
Sufficient funds should be allocated to the agricultural R&D for seed development.
Check on exports
Chinniayan also highlighted the need for enabling the handloom, powerloom and hosiery sectors consume available cotton yarn supplies in the market.
Though protecting the domestic cotton growers could not be ignored, efforts should be made to prevent indiscriminate export of cotton to countries s
Thursday, January 31, 2008
Raw Cotton Prices Rise On Slower Arrivals
Coimbatore: Raw cotton (kapas) prices across varieties have firmed up this week amidst constraints in arrivals of kapas in key markets. The price increase ranged between Rs 200 and Rs 500 per candy (356 kg) and among the varieties that saw spurting are long-staple DCH-32, V-797, J-34 from Punjab, Jayadhar, MCU-5, MECH-1/H-4 and Bengal Deshi.
Arrivals of kapas (raw cotton) turned scarce this week as anxious spinners, hamstrung with minimum cotton stocks, went into buying mode. This is believed to have stoked the price surge, according to market sources.
The slower arrivals is attributed to farmers/ginners holding on to their stocks in anticipation of higher demand in the coming weeks.
Daily arrivals of cotton have dropped to 80,000 bales (of 170 kg each) from December last week/January first week’s levels of two lakh bales a day.
Lint output may fall
According to Ashok Daga, President of Coimbatore Cotton Association, part of the price increase is on account of a lower ratio of lint to cottonseed recorded this year. As compared to the normal lint realisation at 35 per cent against seed weight of 65 per cent, this year the Bt cotton yields have revealed a higher cottonseed weight that has gone up to 67 per cent bringing down the yield of lint.
• Quarterly results of corporates: Check out
This factor, according to Daga, is expected to bring down the overall lint production this season from the projected 310 lakh bales to around 290 lakh bales. This ratio difference has led to lint prices increasing by Rs 700 per candy.
According to Ramani, Joint Secretary, South India Cotton Association, though the international cotton prices have dropped by Rs 1,000 per candy this week, domestic cotton prices continue to remain firm partly on account of the higher holding capacity of cotton farmers who are reluctant to part with their kapas at the prevailing prices.
These farmers, having already sold 50 per cent of their produce at a seller’s market, now prefer to wait for the market to go up before they offload their remaining stocks. The higher kapas yield recorded by farmers especially in Punjab and Gujarat this season has enabled cotton growers in these tracts to hold back their stocks. Sizeable volume of cotton exported also gave the pep to the domestic raw cotton market in keeping prices firm.
Arrivals of kapas (raw cotton) turned scarce this week as anxious spinners, hamstrung with minimum cotton stocks, went into buying mode. This is believed to have stoked the price surge, according to market sources.
The slower arrivals is attributed to farmers/ginners holding on to their stocks in anticipation of higher demand in the coming weeks.
Daily arrivals of cotton have dropped to 80,000 bales (of 170 kg each) from December last week/January first week’s levels of two lakh bales a day.
Lint output may fall
According to Ashok Daga, President of Coimbatore Cotton Association, part of the price increase is on account of a lower ratio of lint to cottonseed recorded this year. As compared to the normal lint realisation at 35 per cent against seed weight of 65 per cent, this year the Bt cotton yields have revealed a higher cottonseed weight that has gone up to 67 per cent bringing down the yield of lint.
• Quarterly results of corporates: Check out
This factor, according to Daga, is expected to bring down the overall lint production this season from the projected 310 lakh bales to around 290 lakh bales. This ratio difference has led to lint prices increasing by Rs 700 per candy.
According to Ramani, Joint Secretary, South India Cotton Association, though the international cotton prices have dropped by Rs 1,000 per candy this week, domestic cotton prices continue to remain firm partly on account of the higher holding capacity of cotton farmers who are reluctant to part with their kapas at the prevailing prices.
These farmers, having already sold 50 per cent of their produce at a seller’s market, now prefer to wait for the market to go up before they offload their remaining stocks. The higher kapas yield recorded by farmers especially in Punjab and Gujarat this season has enabled cotton growers in these tracts to hold back their stocks. Sizeable volume of cotton exported also gave the pep to the domestic raw cotton market in keeping prices firm.
Thursday, January 17, 2008
Cotton Prices Move Up On Better Buying Support
Mumbai: Cotton prices edged up today on better buying support, traders at the East India Cotton Association said.
Cotton varieties like NHH-44 and Hedge contract shot up by Rs 300 per candy each on increase of demand.
Bengal Desi, V-797 and Karnataka Jayadhar increased by Rs 100 per candy each owing to lesser stock supply.
• Check out our Yearender Special
H-4, S-6-A and MCU-5 also shot up by Rs 100 per candy each on improved demand, traders added.
Following are the spot cotton rates per candy (355.62 kg) in Rupees: Bengal Desi: 17,300, V-797: 17,800, Karnataka Jayadhar: 17,100 Y-1: no stocks, Punjab J-34: 19,100, NHH-44: 19,600, LRA: 19,100, H-4: 19,500, S-6-A grade: 19,800, Bunny/Brahma: 21,100, MCU-5: 20,800, DCH-32: 21,800, 35-MM: 29,100, Hedge Contract: 19,600.
Cotton varieties like NHH-44 and Hedge contract shot up by Rs 300 per candy each on increase of demand.
Bengal Desi, V-797 and Karnataka Jayadhar increased by Rs 100 per candy each owing to lesser stock supply.
• Check out our Yearender Special
H-4, S-6-A and MCU-5 also shot up by Rs 100 per candy each on improved demand, traders added.
Following are the spot cotton rates per candy (355.62 kg) in Rupees: Bengal Desi: 17,300, V-797: 17,800, Karnataka Jayadhar: 17,100 Y-1: no stocks, Punjab J-34: 19,100, NHH-44: 19,600, LRA: 19,100, H-4: 19,500, S-6-A grade: 19,800, Bunny/Brahma: 21,100, MCU-5: 20,800, DCH-32: 21,800, 35-MM: 29,100, Hedge Contract: 19,600.
Subscribe to:
Posts (Atom)
