Falling production as well as exports prove to be a double whammy for cotton growers

Cotton Association of India (CAI) says India’s cotton exports in the year of 2018-19 has declined to 47 lakh bales from that of 69 lakh bales a year ago. Lower production and currency fluctuations are affecting cotton export.

Hyderabad: Cotton is the most important fibre crop not only of India but of the entire world. It provides the basic raw material (cotton fibre) to the cotton textile industry. Gujarat, Maharashtra, Tamil Nadu, Telangana, Karnataka, Odisha and Andhra Pradesh are the important cotton-growing States.

Cotton Association of India (CAI) has a lower crop estimate for the current year for Gujarat by 1 lakh bales, Maharashtra by 80,000 bales, Telangana by 4 lakh bales, Andhra Pradesh by 1 lakh bales and Karnataka by 75,000 bales.

Except for Odisha and Tamil Nadu, cotton production in all States has been reduced.

Water scarcity is the main reason for the low cotton output this year. Unfortunately, due to unavailability of water, cotton farmers had to uproot plantations in about 70-80% areas without waiting for 3rd and 4th pickings.

Dynamics of Cotton Export

Cotton Association of India (CAI) says India’s cotton exports in the year of 2018-19 has declined to 47 lakh bales from that of 69 lakh bales a year ago. Lower production and currency fluctuations are affecting cotton export.

Indian cotton has good demand in the international market, however, cotton prices are not competitive and domestic production does not assure constant supply.

World Cotton Market and India

India has strong competition in cotton export from countries like Brazil, Vietnam, Pakistan and Indonesia. Cotton Corporation of India (CCI) says Indian cotton has become uncompetitive in the world market. Hence, India is losing its cotton export market to Brazil due to the price difference.

Further, the US Department of Agriculture (USDA) said because of the ongoing US-China trade tensions, Brazil’s cotton exports to China are expected to go up.

Hence, the Cotton Textile Export Promotion Council (Texprocil) has urged the government to take initiative to boost cotton export.

In order to increase cotton export, efforts are required to address the tariff disadvantage of 3.5 - 10 per cent suffered by India in comparison to Vietnam, Pakistan and Indonesia on textile products.

Next, to agriculture, the textile sector provides the second largest employment in the country. As cotton is the vital input for the textile industry, the government must come to the rescue of cotton growers.