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Raw Material
COTTON Cotton is one of
the major crops cultivated in India . It accounts for about 81% of the
total fibre consumption in the spinning mills and about 66% of the total
fibre consumption in the textile sector. The Textile Policy Statement of
1985 assured off-take of the farmers’ produce at remunerative prices and
also laid down that cotton needed by the domestic textile industry would
be made available in adequate quantity at reasonable prices. The twin objectives
are sought to be achieved through timely announcement of remunerative Minimum
Support Price (MSP) to the farmer and through appropriate export-import
intervention as and when necessary.
PRODUCTION AND CONSUMPTION During the last four decades, the production of cotton rose from 30 lakh bales in 1950-51 to an all time high of 177.90 lakh bales (170 Kgs each) in 1996-97 and there has also been an increase in the area under cultivation from 58.91 lakh hectares in 1950-51 to 93.03 lakh hectares in 1998-99. The average yield per hectare also rose from 88 kgs in 1950-51 to 330 kgs in 1996-97. In the Cotton Advisory Board’s meeting held on 19-11-99 for the cotton season 1999-2000, the production of cotton has been estimated at 175 lakh bales (inclusive 6.75 lakh bales of loose cotton), area at 84.83 lakh hectares and the average yield per hectare at 351 Kgs. One of the reasons for low yield in India as compared to world average of about 580 kg/hectare is that 70% of the area under cotton cultivation is rainfed. The largest share in the total production of cotton is of medium staple variety followed by long staple. The share of short staple is 6.33%. The share of medium long staple is presently 45.89% and the share of long and extra long staple variety is 47.78% in 1997-98. The main cotton producing States are Gujarat, Maharashtra, Andhra Pradesh, Punjab, Madhya Pradesh, Rajasthan, Haryana, Karnataka and Tamil Nadu. Consumption of cotton
has been increasing over the last few years. As against a total consumption
of 115.50 lakh bales during 1990-91 (Mill and Non-Mill), the consumption
level including consumption by spinning units in the Small Scale Sector
has been to the tune of 170.16 lakh bales in 1996-97, 159.01 lakh bales
in 1997-98 and 163.37 lakh bales in 1998-99. As per the estimates of CAB
the consumption for the year 1999-2000 is expected to be 166 lakh bales.
The variety-wise demand for cotton follows the same pattern as the variety-wise
production. In that the major demand is for medium staple variety. The
demand for short staple and extra long staple is relatively low.
DATA ON AREA, PRODUCTION, YIELD AND CONSUMPTION OF COTTON FOR THE PERIOD FROM 1992-93 to 1999-2000 SEASON
* As per estimates
of CAB meeting held on 19.11.99.
PRICES OF COTTON The Government announces Minimum Support Price (MSP) for varieties of cotton every year to ensure remunerative prices for the cotton growers. The Cotton Corporation of India (CCI) is the only agency for implementation of this policy. The CCI enters the market and makes purchases of cotton under support price operation whenever prices tend to decline and come below the MSP level. Since the market prices of all varieties of kapas ruled well above the support prices during the year 1998-99, there was no occasion for the Corporation to undertake any support price operation during the year. However, commercial operation of the Corporation continued as it was during previous years. During the cotton year 1999-2000, kapas prices in the states of Rajasthan and Punjab touched the MSP level and the Corporation undertook the price support operation. The Government of India has fixed the Support Price of two basic varieties of cotton, viz. F-414/H-777/J-34 and H-4 of new crop kapas of Fair Average Quality for Cotton Season 1999-2000. The Support Price for F-414/H-777/J-34 variety has been fixed at Rs.1575/-per quintal, an increase of Rs.135/- per quintal over 1998-99 support Price. Similarly the Support Price for H-4 (Long Staple) variety has been fixed at Rs.1775/- per quintal, an increase of Rs.125/-per quintal over Support price of 1998-99. For other varieties, the Minimum Support Prices are announced by the Textile Commissioner based on market differentials. During the cotton season 1998-99, the Government had released an export quota of 5.00 lakh bales of cotton to State Federations, Private Traders NAFED, CCI, General Ginners and Modern Ginning and Pressing Units. Due to lower cotton crop in that year and the prevailing lower international prices coupled with poor response for Indian cotton from abroad, the Government did not release any further export quota during 1998-99. As against the above quota released, the actual export has been about 98,720 bales valued at Rs.83.60 crores. Further, a quota of 1.27 lakh bales of cotton waste was also released for export in 1998-99. However, the actual shipment was only 29,641 bales of cotton waste valued at Rs. 25.43 crore. For the cotton year
1999-2000, (October-September) the Government has released (till 7th January,
2000) an export quota of 5 lakh bales of raw cotton and one lakh bales
of cotton waste. As on 27.12.99, only 860 bales of raw cotton valued at
Rs 74,000 were exported.
COTTON ADVISORY BOARD The Cotton Advisory
Board is a representative body of Government/Growers/Industry/Trade. It
advises the Government generally on matters pertaining to production, consumption
and marketing of cotton and also provides a forum for liaison among the
cotton textile mill industry, the cotton growers, the cotton trade and
the Government. The Board reconstituted as on 19.5.99, has 40 Members,
of which 6 are Central Government Nominees, 7 State Government Nominees,
6 representatives of cotton growers, 7 representatives of the Textile Industry,
5 representatives of the Cotton Trade, 4 representatives of the cotton
Research and Development, 2 representatives of the Powerloom Sector, 2
representatives from the Handloom Sector and 1 representative from the
Ginning and Pressing Sector. The Members will serve on the reconstituted
Board up to 18.5.2001.
INTERNATIONAL COTTON ADVISORY COMMITTEE (ICAC) The International Cotton Advisory Committee is an association of Governments having an interest in the production, export, import and consumption of cotton. It is an organisation designed to promote cooperation in the solution of cotton problems, particularly those of international scope and significance. The functions of
the International Cotton Advisory Committee, as defined in the Rules and
Regulations are :-
For the fiscal year
1999(July, 1999-June, 2000), India’s contribution to ICAC is US $25,900
(approximately Rs.11, 00,000/-).
Cotton Technology Mission In view of a long
felt need to have a co-ordinated approach to cotton development, a Cotton
Technology Mission has been proposed to be implemented jointly by the Ministry
of Textiles and Ministry of Agriculture. The main objectives are productivity,
improving research, marketing and post harvest activities. The Mission
will comprise four mini missions dealing respectively with research, extension
to technology, marketing arrangements and improvement in ginning and pressing.
The Scheme has been approved by the Cabinet Committee on Economic Affairs
(CCEA) on 12th January 2000 .
MAN-MADE FIBRE & FILAMENT YARN INDUSTRY The man-made fibre
& yarn industry comprises of fibre and filament yarn manufacturing
units of cellulosic and non-cellulosic origin. The cellulosic fibre/yarn
industry is under the administrative control of the Ministry of Textiles
while non-cellulosic industry is under the control of Ministry of Chemicals
& Fertilizers (Department of Chemicals & Petro Chemicals). This
industry has a vital role to play in the Textile industry in the sense
that about 39% of the raw material consumed is manufactured by the man-made
fibre/yarn industry. The production of man-made fibre /yarn, in general
is expected to increase during 1999-2000 as compared to the production
during 1998-99. The production of viscose staple fibre during 1999-2000
is expected to increase by 2% as compared to 1998-99. The production of
polyester staple fibre & polyester filament yarn during 1999-2000 is
expected to increase by 13% and 3% respectively over the previous year.
The production of acrylic staple fibre is expected to decrease by about
5%. The production of viscose filament yarn is expected to significantly
decline by 20% over previous year. The production of nylon filament yarn
is also expected to decline by about 8% in the same period. The installed
capacity and the details of production during the last six years are given
in the following table.
INSTALLED CAPACITY AND PRODUCTION OF MAN-MADE FIBRE/FILAMENT YARN (In tonnes)
P = Provisional A = Anticipated TPA = Tonnes per annum. ** = Including HWM Fibre. # = The exclusive capacity of N.F.Y. & P.P.F.Y. @ =
The capacity under ‘Broad Banding Scheme’ has been indicated against P.F.Y.
IMPORTS Though the production
of the man-made fibres and yarns has increased in the past, the production
of these fibres and yarns is found inadequate to meet the requirement of
textile industry and other user industries. As such to meet the requirements
of user industries adequately, Government has liberalized the imports and
all the items of man-made fibres and yarns now stand placed under OGL.
Such imports are, however, constantly and carefully monitored to ensure
that the indigenous producers are not adversely affected due to unfair
competition or unfair trading practices by foreign suppliers. The table
given on the next page gives imports of fibres and yarn during the last
six years.
EXPORTS The man-made fibres and yarn industry has contributed to a great deal in the export of man-made textiles. Further, in order to encourage the exports of various fibres and yarns, the government reviews from time to time, the export policy of the fibres and yarns. While the export of all other man-made fibres and yarns is freely allowed, export of viscose staple fibre is subject to licencing primarily with a view to safeguard the interest of the textile industry. Table given on the next page gives the detail of exports of man-made fibres and yarns during the last six years. IMPORTS OF MAN-MADE FIBRE/FILAMENT YARN (In tonnes)
P = Provisional E = Estimate Source: Directorate
General of Commercial Intelligence and Statistics (DGCIS), Calcutta.
EXPORTS OF MAN-MADE FIBRE/FILAMENT YARN (In tonnes)
Man-made Textiles The export of man-made fibre textiles in 1998-99 was US$ 946.4 as against US$ 1012.2 in 1997-98. The export during current financial year April-November, 1999 has registered
an increase over the corresponding period of previous year. The exports
were of the order of US$ 699.2 during April-November, 1999 as against US$
647.4 in April-November, 1998.
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