COTTON
Cotton is one of the major crops cultivated in India . It accounts for more than 75% of the total fibre consumption in the spinning mills and more than 58% of the total fibre consumption in the textile sector. The twin objectives of assuring off-take of the farmers’ produce at remunerative prices and making available adequate quantity of cotton at a reasonable prices to the domestic textile industry, 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 1996-1997 and there has also been an increase in the area under cultivation from 58.91 lakh hectares in 1950-51 to 93.87 lakh hectares in 1998-99. The average yield per hectare also rose form 88 kgs in 1950-51 to 330 kgs in 1996-97. In the Cotton Advisory Board’s meeting held on 24.02.2001 for the cotton season 2000-2001, the production of cotton has been estimated at 146 lakh bales (inclusive 8 lakh bales of loose cotton), area at 81.22 lakh hectares and the average yield per hectare at 305 Kgs. One of the reasons for low yield in India as compared to world average of about 580 kg/hectare is that 65% 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 about 7%. The share of medium long staple is presently 42% and that of share of long and extra long staple variety is 51% in 1998-99. 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 the 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 173.36 lakh bales in 1999-2000 (Oct.1999 to Sept. 2000) The domestic consumption for 2000-01 is estimated of 173 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 lower. Data on area production, yield and consumption of cotton is given in Table 6.1

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 in the country except the State of Maharashtra. The CCI enters the market and makes purchases of cotton under support price operation whenever prices come below the MSP level. The market prices of all varieties of kapas ruled well above the support prices during the year 1999-2000 except for J-34 variety in the north for a brief period in November and December, 1999 when the CCI had immediately stepped in and made purchases of 7874 bales of J-34 variety of kapas at some places in the States of Rajasthan and Punjab. Commercial operation of the Corporation continued as usual.
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 2000-01. The Support Price for F-414/H-777/J-34 variety has been fixed at Rs.1625/-per quintal, an increase of Rs.50/- per quintal over 1999-2000 Support Price. Similarly, the Support Price for H-4 (Long Staple) variety has been fixed at Rs.1825/- per quintal, an increase of Rs.50/-per quintal over Support price of 1999-2000. For other varieties, the Minimum Support Prices are announced by the Textile Commissioner based on market differentials.

Data on area, production, yield and consumption of cotton for the period from 1992-93 to 2000-2001 season

Cotton Year	Area Lakh Hectares	Cotton lakh B/s of 170 Kgs.	Production in 000's tonnes	Cotton Yield Kg/ Hectare	Cotton Consumption Lakh B/s of 170 Kg each Mill + non Mill + small spinning
1992-93	75.41	138.00	2346.00	311	125.01
1993-94	74.40	121.50	2065.00	278	127.00
1994-95	78.61	138.50	2354.50	300	135.04
1995-96	90.63	170.70	2901.90	320	154.29
1996-97	91.66	177.90	3004.30	330	170.16
1997-98	88.29	158.00	2686.00	307	159.01
1998-99	92.87	165.00	2805.00	302	165.36
1999-2000	82.01	156.00	2652.00	307	173.36
2000-2001*	81.22	146.00	2482.00	305	171.00

During the cotton season 1999-2000, the Government had released an export quota of 5.00 lakh bales of cotton to State Federations, Private Trade, 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 1999-2000. As against the above quota released, the actual export was 0.652 lakh bales valued at Rs.83.60 crores. Further, a quota of 1 lakh bales of cotton waste was also released for export in 1999-2000. However, the actual shipment was only 0.299 lakh bales of cotton waste valued at Rs.24.23 crore.
For the cotton year 2000-01, (October-September) the Government has released (till Fubruary 2001) an export quota of 9 lakh bales of raw cotton and one lakh bales of cotton waste.

COTTON ADVISORY BOARD
The Cotton Advisory Board is a representative body of the 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 as reconstituted 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 representative of the Powerloom Sector, 2 representatives from the Handloom Sector and 1 representative from the Ginning and Pressing Sector. The reconstituted Board is valid 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 organization 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 :-
To observe and keep in close touch with developments affecting the world cotton situation.
To collect and disseminate complete, authentic, and timely statistics on world cotton production, trade, consumption, stocks and prices.
To suggest, as and when advisable, to the governments represented, any measures the Advisory Committee considers suitable and practicable for the furtherance of international collaboration directed towards developing and maintaining a sound world cotton economy.
To be the forum of international discussions on maters related to cotton prices.
For the fiscal year 2000 (July, 2000-June, 2001), India’s contribution to ICAC is US $ 26,400 (approximately Rs.12,00,000/-).
The 59th Plenary Session of ICAC was held in Cairns, Queensland, Australia from 5th November, 2000 to 10th November, 2000. The Indian delegation, led by Shri Vishwa Nath, Chairman-cum Managing Director, Cotton Corporation of India Ltd. (CCI) presented the country statement. The theme of the meeting was “Cotton-Global Challenges”. Member Governments discussed production and export subsidies, import tariffs and other trade barriers that distort prices, production and trade in cotton and cotton products. The committee reviewed efforts to enhance the competitiveness of cotton, and agreed that the highest priority must be assigned to meeting the changing quality needs of textile manufacturers and consumers.
The World Cotton Research Conference-3 will be held in Capetown, South Africa during March, 2003. The 60th Plenary Meeting of the ICAC will be held in Victoria Falls, Zimbabwe from September 16-21, 2001

COTTON TECHNOLOGY MISSION
In view of a long felt need to have a co-ordinated approach to cotton development, a Cotton Technology Mission was launched by the Government in February, 2000. The Mission comprises four mini missions with specific objectives of ‘research’, ‘dissemination of technology to farmers’, ‘improvement in market infrastructure’ and ‘modernisation of ginning and pressing sector. A total amount of Rs. 593 crore has been allocated for the four mini missions for the last three years of the Ninth Five Year Plan. The Ministry of Textiles is implementing Mini Missions III & IV relating to improvement in market infrastructure and modernization of Ginning & Pressing factories.

As on 31st January, 2001 under MM-III, project proposals for improvement of 20 market yards, activation of 10 market yards and setting of 4 new market yards have been sanctioned. The total estimated cost is Rs.43.56 crore out of which Government of India share would be of Rs.23.93 crore. Under MM-IV, 100 proposals for modernization of ginning and pressing factories at an estimated cost of Rs.99.13 crore have been sanctioned, out of which Government of India share would be of Rs.19.38 crore.

MAN-MADE FIBRE & FILAMENT YARN INDUSTRY
The man-made fibre & yarn industry comprises 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 2000-2001 as compared to the production during 1999-2000. The production of viscose staple fibre during 2000-2001 is expected to increase by 20% as compared to 1999-2000. The production of polyester staple fibre & polyester filament yarn during 2000-2001 is expected to increase by 3% and 6% respectively over the previous year. The production of acrylic staple fibre is expected decrease by about 43%. 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 1% in the same period.

The installed capacity and the details of production during the last eight years are given as mentioned in Table 6.2.
Click Here for the Table 6.2