CHAPTER-III PRODUCTION AND MARKETING OF COTTON IN INDIA AND KARNATAKA AN OVERVIEW

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1 CHAPTER-III PRODUCTION AND MARKETING OF COTTON IN INDIA AND KARNATAKA AN OVERVIEW 3.1 Introduction: Cotton is one of the most important commercial crops cultivated in India. It plays a major role in sustaining the livelihood of an estimated 5.8 million cotton farmers and million people engaged in related activity such as cotton processing & trade. The Indian textile industry consumes a diverse range of fibres and yarn. In the raw material consumption of the Industry, the ratio of the use of the cotton to man-made fibres and filament yarns is 59:41. The textile industry contributes significantly to the economy in terms of industrial output, employment generation and the export earnings of the country. It contributes about 4percent to GDP, 14 percent to the industrial production and 17 percent to the country s export earnings. The Indian textile industry provides direct employment to over 35 million people. The textile sector is the second largest provider of employment after agriculture. India is one of the few countries in the world to have a well-established, complete value chain in the textile industry. 3.2 Background of the study: Agriculture has been the backbone of Indian economy and it continues to remain so, for a long time. It supports almost 17 percent of the world population occupying 2.3 percent BT of the world geographical area, and accesses 4.2 percent of world water resources. The economic reforms, initiated in the country during the early 1990s have put the economy on a high growth trajectory. Annual growth rate in GDP has accelerated from below 6 percent during the initial years of reforms to more than 8 percent in the recent years. This has happened mainly due to rapid growth in non-agriculture sectors. The 37

2 workforce, engaged in agriculture between and , has witnessed a decline, from 60.5 percent to 52 percent. At the national level the total net irrigated area covers 45.5 percent of the net sown area, the remaining 54.5 percent is rain fed. The degradation of land and surface as well as groundwater resources, have resulted in a fast deterioration of soil health. Losses due to biotic (insect- pests, diseases, weeds) and a biotic (drought, salinity, heat, and cold) stresses account for about onefourth of the value of agriculture produce. The storage, transportation, procession, value addition and marketing of farm produce need to be improved to enhance household food, nutrition and livelihood security. Indian agriculture is characterized by agro-ecological diversities in soils, rainfall, temperature, and cropping system. Besides favourable solar energy, the country receives about 3 trillion m 3 of rainwater, 14 major, 44medium and 55 minor rivers share about 83 percent of the drainage basin. About 210 billion m 3 water is estimated to be available as groundwater. Irrigation water is becoming a scarce commodity. Thus proper harvesting and efficient utilization of water is of great importance. Intensive cultivation as a result of introduction of high yielding verities in the mid 1960s required higher energy inputs, and better management practices. Land preparation, harvesting, threshing and irrigation are the operations, which utilize most of the energy used in agriculture. The share of animate power in agriculture decreased from 92 percent in to 20 percent in Cropping systems of a region are decided, by and large, by numbers of soil and climatic parameters, which determine the overall agro-ecological setting for nourishment and appropriateness of a crop or set of crops for cultivation. Nevertheless, at the farmer level potential productivity and monetary benefits act as guiding principles while opting for a particular crop/cropping system are further narrowed down under the influence of several 38

3 other forces related to infrastructure facilities, socio-economic factors and technological developments, all operating interactively at the micro-level. Cropping system remains dynamic in time and space, making it difficult to precisely determine their spread using conventional methods, over a large territory. However, it has been estimated that more than 250 double cropping systems are followed throughout the country. Based on the rational of spread of crops, in each district in the country, 30 important cropping systems have been identified. These are: rice-wheat, rice- gram, rice-mustard, rice-groundnut, ricesorghum, pearl millet-gram, pearl millet- mustard, pearl millet-sorghum, cotton-wheat, maize-gram, sugarcane-wheat, soybean- wheat, sorghum-wheat, sorghum-sorghum, groundnut-wheat, sorghum-groundnut, groundnut-rice, sorghum-gram,pigeon pea-sorghum, groundnut- groundnut, sorghum-rice, groundnut-sorghum and soybean-gram. 3.3 A Brief history of Indian Cotton: Cotton (Gossyium spp), the king of fibres, is closely linked to human civilization itself. Cotton fibres were discovered more than 4,000 years ago in Coastal Peru and at Mohenjo-Daro in Indus Valley. Cotton has played a vital role in updating Indian economy in the evolution of human ethical, moral and culture values. Until the middle of the 18 th century, only ideogram arboretum and herbaceous verities of cotton were grown in different regions of the country. The most significant development and spread of American cotton (verity Cambodian) in India were introduced in It proved very promising under irrigated conditions. Prior to 1914, India had produced lakh bales of cotton, is a natural fibre origin, like linen, jute or hemp and composed of cellulose. Cotton is the fruit of cotton plant. Cotton is a variety of plant of the genus Gossypium, belonging to the Malvacae family. Being a supplier of raw materials for the textile industry, it plays a vital role in the Indian economy. Besides sustaining the country textile industry, it also earns precious foreign exchange for the country, from the export of raw 39

4 cotton and finished goods. Although cotton is primarily fibre crop, it is also used as a feed crop. Cotton seed is the world second most used oilseeds for culinary purposes and the oil cake residue is a protein- rich feed for ruminant livestock. Cotton as one of the most important cash crops in India plays a significant role in the national economy. It occupies 5 percent of the total cultivated area of the (total cultivated area of the country) and 28 percent of the world area under cash crops. On an average, around 200 men - days are utilized in the farming of cotton in one hectare area in a season. Thus, it employs more than one million farmers, annually. More than 4,000 ginning and pressing units, dependent on cotton, guarantee employment to millions of people in the country. Overall about 50 million people are dependent upon cotton cultivation, trade and processing for their livelihoods. Textile industry provides employment for about 25.5 lakhs of people. Cotton as a predominant fibre accounts for nearly 70 percent of total fibre consumption in the country. Cotton belongs to the order Molvales, family Malvaceae, the tribe Hibisceal and the genus Gossypiwn, having nearly 42 species among which 4 are cultivable.in India, the varities falling under all the four cultivated species of Gossypium namely, G. Hir sutum, G. Barbadense, G arboreeum and G.arboreum and G. Herbaceum, are grown. The predominant specises cultivated is G. Hirsutum, which covers about 69 percent of the area followed by G.arboreum with 17 percent and G. Herbaceum, with 10 percent, in In the present situation, G. Hirsutum occupies 90 percent of area. On the other, G. Arboreum and G. Herbaceum account for 4 percent and 5 percent of the area, respectively. The area under G. Barbadense is negligible and is only a few thousand hectares. All the four species are grown in India in area falling within 8 degree and 32 degree N latitidues and between 70 degree 80 degree E longitudes, with an elevation range from the mean sea level to 950m.It is also being cultivated 40

5 in area where the annual rainfall distribution ranges from 250 mm to 1,500mm. It is grown in widely varying soil conditions of colour, texture and nutrient status. Cotton fibre is unicellular seed and hair comosed of basically 92 percent to 95 percent of pure cellulose. The spinnable lint hair is epidermal in origin, while the non-spinnable fuzzy hair is sub epidermal in origin on the seed. Cotton boll development commences soon after fertilization and the first 21 to 25 days determine fibre elongation. At this stage, fibre remains mainly a hallow tube, filled with protoplasmic fluid, although some secondary thickening also takes place. The outer cuticle is made up of wax and pectin. During the subsequent 22 to 28 days, the cell wall begins to thicken through deposition of cellulose inside the concentric layers. When the cellulose deposition is complete, the bolls burst open and the triggered cells dry out into collapsed flat tubes with convolutions and reversal, which are characteristics of the cotton fibre. Acreage under cotton cultivation: Approximately 62Percent of Indian s cotton is produced on rain-fed areas and 38Percent on irrigated lands. The acreage under cotton cultivation during cotton season (Oct. Sept.) is million hectares as against million hectares in the previous season. Due to switching over to other competing crops across the cotton belt in various cotton growing States of the country, and the acreage has been less. Cotton farmers in India have been showing increasing inclination in bringing more and more areas under Bt cultivation, which has helped them in increasing their net earnings through higher yields and lower cost on pesticides consumption. The acreage under Bt cotton in had been around 92.5Percent (i.e million hectares) of the total area of million hectares while during , it was around 88Percent (i.e million hectares) of the total acreage of million hectares. 41

6 3.4 Indian cotton varieties: India is the country to grow all four species of cultivated cotton Gossypium arboreum and herbaceous (Asian cotton), G. barbadense (Egyptian cotton) and G. hirsutum (American Upland cotton). Gossypium hirsutum represents 88Percent of the hybrid cotton production in India and all the current Bt cotton hybrids are G.hirsutuim. India produces large number of cotton hybrids and varieties. 3.5 Cotton production and productivity: Though cotton is inherently a semi Xerophytes perennial crop, it is cultivated as an annual/seasonal crop. In India, cotton is cultivated in three diverse agro-ecological zones, Northern zone comprising the States of Punjab, Haryana and Rajasthan, Central zone comprising the States of Gujarat, Maharashtra and Madhya Pradesh and Southern zone comprising the States of Andhra Pradesh, Karnataka Orissa and Tamil Nadu. Besides these nine States, cotton cultivation has gained momentum in the Eastern State of Orissa. Cotton is also cultivated in small areas of non-traditional states such as Uttar Pradesh, West Bengal and Tripura. 3.6 Production scenario of cotton: About 80 countries are growing cotton in the world, in an area of million hectares with a production of 87.3 million bales of 170 kg each (Textile Commissioner, GOI, ). But over the years, the productivity has been decreasing. The world cotton area has declined during the year , after a large increase in cotton prices during the preceding season. The world cotton acreage during has decreased by about 8 percent (30.69 million hectares), as against million hectares in Cotton has remained less attractive for the farmers than competing crops, partly due to higher production costs and partly due to less interesting prices. Cotton production decreased to the lowest levels in many years in a number of countries including the United States, Turkey, Greece, Egypt and South Africa. 42

7 The world cotton mill use fell for the first time, in a decade, due to drop in demand for textile for textile products, caused by slower economic expansion and higher prices of cotton relative to polyester. The decline in cotton mill use in was around million tons (13 percent) as against million tons in The world cotton trade during the cotton season of has declined sharply. The drop in imports was driven by China and Pakistan and the drop in exports was driven by India. The US exports declined only slightly. At present, China, USA, India, Pakistan and Uzbekistan are the top five cotton producing countries of the world. These five countries together contribute to more than 70 percent of the world cotton production. Among these, China ranks first with in total production third in area and second in yield. Even though India ranks first with respect to area, it ranks third and fifth with respect to production and yield, respectively. The largest producer of cotton is China, which accounts for about a quarter of the world production. Historically, the United States was the second major producer of cotton for long but as of 2006, it has been surpassed by India. Over the past 35 years, average annual growth of production in India has been in the range of 4.6 percent. Yet, during to , the cotton production in India has been growing rapidly. During the year , India produced 29.0 million bales of cotton in an area of million hectares. The productivity of cotton during was 526 kg/hectare. India ranked first in acreage, accounting for nearly 28 percent of the world cotton area but the average yield was about half the world average. Cotton production in India increased steadily from 3.28 million bales during to 29 million bales during The area under cotton increased from 5.88 million hectares to 9.37 million hectares during the same period. The rapid and considerable rise in cotton production has resulted mainly from increased yields, which rose from 95 kg/ in to about

8 kg/ha in (according to cotton advisory board). The increase in cotton acreage was mainly due to improvement in irrigation facilities while the yield increases were mainly from improved crop verities, crop protection and higher fertilizer use. Although cotton is grown all over the country, there are nine major cotton growing states which contributed more than 99 percent of the total area and production of cotton in the country. The major cotton growing states are Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and Tamilnadu. Maharashtra has the highest cotton acreage (3.13 million hectares) and has ranked second in production, with 6.2 million bales in Gujarat has accounted for 2.41 million hectares of area and 9.0 million bales of production. Andhra Pradesh has ranked third with respect to area and production of cotton in The output of cotton in Andhra Pradesh in was 5.3 million bales. But Tamilnadu and Gujarat have had higher yield levels, compared to other states. Some of the reasons for irrigation facilities, poor water management and indiscriminate use of chemical pesticides lack of credit and marketing facilities. 3.7 Cotton production of Karnataka may be classified as: In a developing economy the growth of agriculture sectors is crucial in the promotion of development of others sectors like industry and services the main economic sectors of any economy. The growth rate in agriculture is the cumulative effect of growth rates in its components sub-activities. In India, agriculture sector accounts for 28 percent of the Gross Domestic Product (GDP) and serves the livelihoods of two thirds of the population. Cotton, being a principal cash crop of the country, accounts for about 2.5 percent of the agriculture output. Several centuries ago, cotton had been grown by many economic. A recent report ( ) of the Food and Agriculture Organisation (FAO) revealed that India ranks first in area next to Chain and United States. 44

9 The country pre eminence in cotton production reflects an efficiency in the cotton production in the nine major cotton growing states, falling under three zones, namely, the Northern Zone comprising of Punjab, Haryana and Rajasthan, the Central Zone comprising of Gujarat, Maharashtra and Madhya Pradesh and the Southern Zone accounted for percent of the total production in the others parts of the country was a mere 5.16 percent of the total production in the country. Karnataka is one of the few States in the country, which have made a marked progress in the sphere of agriculture. The importance of the agriculture sectors both from the angle of growth and equity and in the development process of Karnataka agriculture is one of the most essential attribute of the Karnataka economy. The topography of Karnataka and such factors as the relief, soil and climate immensely support the agriculture activities of Karnataka. Agriculture is considered to be one the primary occupations for the inhabitants of Karnataka. A majority of the people of Karnataka has occupied around million hectares of land that include 64.6 percent of the total area. The 2001 enumeration accounts for about 71 percent employment as farmers and Agriculture labourers. The main season for agriculture in Karnataka is monsoon of reason as irrigation covers only 26.5 percent of the total cropped area ( Karnataka at a Glance). 3.8 Agriculture in Karnataka is mainly done over 3 seasons: 1. Kharif (April to September), 2. Rabi (October to December), and 3. Summer (January to March) seasons. The kharif crop in Karnataka comprise of millets, paddy (rice). Maize, moong (Pulses), groundnut, red hillies, cotton soybean, sugarcane, and turmeric. It is also known as the autumn harvest as it is cropped at the 45

10 beginning of the first rains in the month of July. The major rabi crops of Karnataka are wheat, barley, mustered, sesame and peas. Karnataka is an agrarian state known worldwide for its production of coffee, raw silk and sandal wood the state has a 75 percent share of the total floriculture industry of the country. About 70 percent of the people of the state live in villages and 71 percent of the total population is agriculture dependent. Fifty-nine percent of the total coffee produced in the country comes from Karnataka whereas the state is also a major producer of ragi. The major food crops grown in the cash crops viz. Cotton, Cashew, Coconut, Arecanut, Cardmom, Chillies, Cotton, sugarcane and tobacco. The importance of the agriculture sectors, both from the angle of growth and equity in the development process of Karnataka agricultural economy as elsewhere in the country, cannot be contested. Agriculture continues to be a primary sector of Karnataka economy providing employment and income to a large proportion of the predominately rural population food and commercial crops. The Agriculture sector apart from the producing food produce, raw materials for agro based industries like cotton, oil seed and sugar. Cotton crop, having a profound influence on the men and matters, is an industrial commodity of worldwide importance. Despite recent setbacks, cotton continues to occupy prime position in the rural economy of India and the Northern belt of Karnataka, particularly in the rain fed areas. Besides being a money spinner, it is also an employment generator, providing 200 man -days per hectare of employment. Cotton is one of the major non-food crops in Karnataka and occupies a prominent place in the agriculture economy of the state accounting for nearly fifth place of the total occupied area. Out of 29 Districts in the state, cotton is grown in many as 21 districts and is an important contributor to the national Income. Among the cotton growing states in India, Karnataka state stands 5 th position in the area and 7 th position in the production of cotton in the country. The development in 46

11 the states cotton economy make a noticeable impact on the cotton economy of the country: as a whole policy measures which directly impinge on the cotton production in the state, therefore, be carefully assessed in the long term interest of the Indian cotton economy. We many now begin a presentation of few facts and trends observed in the cotton economy of Karnataka for the period of to The main variables that affect cotton economy include: area production, productivity, quality and staple length. Agriculture in the state depends mainly on the monsoon rainfall which is uncertain: the cotton area under irrigation is limited despite large investments made in the planning era. Naturally, year to year fluctuations in area and production of cotton are inevitable in Karnataka. The leading cotton growing Districts, are Belgaum, Bellary, Haveri, Bijapur, Chitradurga, Gadhag, Dharwad, Gulbarga, Mysore, Raichur and all of them accounted for more than 96 percent of the total area under cotton in the state. Despite recent floods in the northern Districts and subsequent damage to the standing crops, Karnataka is likely to increases its cotton output this year by around 15 percent or to a little over one million bales (1 bales is 170 kg ). The state which produced 9 lakhs bales of cotton from 3.9 lakh in , had earlier set a target of 25 percent growth in cotton output and 21 percent increase in area under cultivation on 4.9 lakh hectares. However, according to an assessment of crop damage due to recent floods conducted by the State Agriculture Department, close to 51 percent of the 291,000 hectare under cotton has been partly damaged in North Karnataka during this year Kharif season. The major damage to crop was in Belgaum District affecting 18,730 hectare, followed by Davangere, which has lost 16,584 hectares and Dharwad 16,565 hectare Gulbarga and Raichur Districts have lost 15,228 hectare and hectares, respectively. 47

12 Assuming that another 2 lakh ha will be brought under cultivation in the rabi season, the state is likely to end the current crop year with an estimated cotton output of close to 1.1 million bales from 3.42 lakh ha. At an average of 4.8 bales per hectare, during the Kharif season and around two bales per ha during the rabi season, the cotton trade in the state estimates the total production from the state to be higher by around 15 percent this year compared to last year. While the recent heavy rains have damaged croops in some areas, in other areas, the crops is likely to be large. While the farmers use Bt. Cotton seeds for cultivation, which yields an average of 4.8 bales of lint cotton per hectare, short varities of cotton (Jayadhar variety) are used in the cultivation during Rabi season, which yields around 2 bales per hectare in Karnataka. For the current cotton season (October September 2010) the open market prices are ruling at a high of Rs. 2,850 per quintal in Karnataka. While the Central Government has fixed a minimum support prices at Rs. 2,000-4,200 per quintal depending on the variety of cotton. 3.9 Cotton: An Upcoming Commercial Crop in Bellary District: Cotton as a market oriented commercial crop is grown both under traditional Northern belt as well in the non-traditional Southern District viz, Bellary District. The present study relates to the production and marketing of cotton in Karnataka, A study in Bellary District is one of the major cotton growing Districts in Karnataka. In the District is one of the major cotton in taluks, from which select major cotton is growing Taluks are chosen and they are Bellary, H.B. Halli, Hospet, Kudligi, Sanduru, Hadagali and Siruguppa in Bellary District. Cotton is a rained crop there has been wide variation in area under crop year. 48

13 3.10 The major cotton producing countries: The major cotton producing countries are the USA, China, India, Pakistan, Egypt, Argentina, Austria, Greece, Brazil, and Turkey. These countries contribute to about 85 percent of the global cotton production in India; cotton crop is grown throughout the country. The cultivation of cotton and its manufacture into textile has been practiced in India since pre-historic times. The evidences from the excavations of Mohanjodaro prove that Desi cotton of Northern India is 5,000 years old. Spread from India it the far- East and Mediterranean countries, they are preferred over synthic fabrics because of its better wear comfort. However, there are nine major cotton producing states, namely, Punjab, Haryana, Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Andra Pradesh, Karnataka and Tamil nadu. These states contribute 90 percent to the national cotton production. Based on cotton cultivation, India is derived into three major Zone ( Punjab, Hrayana and Rajasthan), the central zone (Madhaya Pradesh, Maharashtra and Gujarata) and the South zone (Andhra Pradesh, Karnataka and Tamil nadu). These zones differ from each other in soil type, topography, irrigation facilities and the species cultivated. Perhaps, India is the only country in the world where all the four cultivated species are grown for commercial cultivation, besides hybrids. In India, 45 percent of the area is covered with hybrids, 31 per cent with upland varieties and 24 percent with diploid cultivators (ICAC, 1997). The Egyptian cotton is cultivated on a very little area (0.2 percent) in a few pockets of Tamil nadu and Andra Pradesh. The G. Herbaceum is confined to the states of Gujarat and Karnataka. Two species namely, G. Hirsustum and G. Arboreum are cultivated in all the nine cotton- growing states of India. 49

14 3.11 World Cotton vis a vis India: Cotton accounts for 40 percent of the global fibre production and is the most important fibre in the world. India is a major player in the world Cotton market and is in tune with area and production. In recent years, India became the second largest cotton producer, in , after overtaking the USA. It has also emerged as the largest exporter in recent years with its surplus output. Cotton covers about 7 percent of the total kharif crop acreage and is second to rice in India. Cotton textile is one of the largest industries in India, providing employment to cover 15 million people. Cotton is an industrial activity, in terms of employment and foreign exchange earnings. It provides raw materials for 1,500 mills, 4 million handlooms, 7 million powers looms. The livelihood of 60 million people depends on cotton cultivation, processing, trade and textiles. Textile including cotton contributes percent of the total Indian export. Textile industry contributes 4 percent of the gross domestic product, 14 percent of the total industrial product, 20 percent of the total work force, 17 percent of the share of country export earnings, 12 percent of the world textile production, employment to 30 million people, the second largest provider of employment and export revenue of Rs.8,00,000 million per annum. Area under cotton arose the world has been stagnant for the last five decades however; production has increased due to a sharp rise in yield. The world cotton area ranged between 29.3 million and 35.9 millions, registering 0.07 percent growth during From 9.8 million ton in , the world cotton production has increased to 26.0 million tons in recent years, at an annual growth rate of 1.88 percent during As per the USDA data, the world acreage under cotton during has declined 1 percent at million ha as against million ha during the previous year. Acreage is estimated up in Chain, India and pakistan while the same declined in the USA Turkey, African France Zone and Australia due 50

15 to a combination of higher prices for competing crops and favourable weather condition at the planting time. Table-3.1 The world cotton balance sheet (quantity in million metric tons) Beginning stocks Particulars Beginning stocks World Total China ( Mainland) USA Production World Toal Chain (Mainland) USA India Pakistan Uzbekistan Brazil Consumption World Toal Chain (Mainland) India Pakistan EU, CEU.Turkey Asia/ Austrial USA Brazil CIS Ending Stocks World Toal Chain(Mailand) USA Source: USDA 51

16 The world cotton production during has gone down by around 2 percent to million tons due to reduction in cotton area (see Table-3.1). Significant declines in production have been noticed in the USA and Brazil, which could be offset by increases in India, Australia and the West African countries. The world cotton consumption has exceeded production in by around 3 percent. Consumption increased in china, India and Pakistan. The world cotton mills use has den stable at 26.7 million tons in due to slower world economic growth and higher prices of cotton relative of polyester. The strength of currencies against the US $ and sometimes the Euros, is also affecting the textile industry in a number of cotton growing countries. Year Table-3.2 World cotton area, yield and production ( ) Area (in Million hectares) Production (million metric ton) Yield ( Kg/ha) , , , , , , , , Source: FAS/USDA/February Table-3.2 reveals that world cotton production and productivity of cotton during the years to Cotton acreage across the world has not witnessed major changes during last five decades, the area under cotton remained stagnate between 30 to 35 million hectares. But the production has increased gradually over the years due to introduction and improvements in high yielding varieties. Global cotton output has increased at compounded 52

17 annual growth rate of 2.65 percent since Since the beginning of current decade, the world cotton production has been hovering in the range of million tonnes. The highest production was in at million tonnes. According to USDA, world cotton production in at million tonnes, down 4.46 percent from last year. Output in is expected to be lower at million tonnes due to lower acreage in major producing countries. These have not been any significant changes in the cotton area in the period, although there have been slight changes in the extent more or less from year to year. Cotton has grown more slowly from the mid-1970s until the mid- 1980s. After that, during the 1980s the world cotton productivity rose dramatically and reached a record of nearly 780 kg per hectare in As the market incentives and the widespread use of better seed verities and better methods of plant protection led to increasing yields the production began to look up. But these forecasts are changing owing to improved weather conditions during last couple of months in major cotton growing regions of the world, including.usa, China and India Changing Scenario of the Indian Cotton: India is one of the major cotton producers in the world having the largest acreage under cotton and is also the second largest consumer cotton. The area contribution of cotton in the world, which was 24 percent, during , remained unchanged up to , but it was 28 percent during (Table 4.3). Chain and USA are on top the list by producing 20 percent and percent of world cotton production, respectively, while India occupies the third place (17 percent), followed by Pakistan (8.1 percent ) and Uzbekistan (6 percent ) up to

18 Table- 3.3 Indian cotton in the Global Scenario Area (million hectares) Production (Million bales) Year World India Percent Year World India percent Source: India-DES: World-CCI-2008 India has now been placed as the second largest cotton producing country having the USA behind in the year and by contributing 21 percent of the world production according to CAB (Table-3.3). Table-3.4 Yield gap of Indian Cotton Year India World Gap Source: Cotton Advisory Board The average productivity of our country, India is still the lowest among the major cotton growing countries of the world. As against the world average 54

19 of 604 kg lint/ha India productivity was only 278 kg lint/ha during But from the year , the productivity has increased substantially, having as high as 567 kg lint per ha during (Table-3.4). Therefore, the gap between the world and India in productivity has been reducing. The gap, which was 326 kg lint per ha during has now been reduced to 213 kg lint per ha during The average yields of Gujarat, Tamil nadu, Tamil nadu, Andra Pradesh and punjab are at par with world average, ranging from 650 to 743 kg lint per ha, according to CAB Cotton cultivation in India Cotton Zones: Cotton is cultivated in three Distinct agro- ecological zones (North, central and south) of the country. Besides this, cotton is also cultivated in small area of non-traditional states like Uttar Pradesh, Orissa, West Bengal and Tripura it is inherently a semi-xerophytes perennial crop. However, it is being grown as an annual/ seasonal crop. Approximately, 65 percent of India cotton is produced on dry land and 35 percent on irrigated lands. The Northern zone is almost totally irrigated, while the percentage of irrigated area is much lower in the Southern zone (40 percent), the lowest being in the central zone (23 percent), which has nearly 60 percent of the cotton area of our country. Under the rain fed conditions, the rainfall ranges from less than 400 mm to more than 900 mm, coupled with aberrant precipitation patterns over the years, leading to large scale fluctuations in production. In the irrigated tracts, canal and well irrigation are available and these area are mostly covered with hybrids, upland cotton and diploid species, respectively. G. Barbadians is grown on a very little area (3 percent) in Tamil nadu and Andhra Pradesh. G. Herbaceous is limited to Gujarat and Karnataka. G is grown in all the major cotton growing states of India. The North zone, comprising of Punjab, and Rajasthan, is irrigated area and cotton is cultivated during kharif season in the Indo-Genetic alluvial soils. The climate is adverse at the sowing season with high temperatures and the 55

20 growing period is limited to six months (May to October). Being irrigated, the productivity is higher than in the other two zones. This zone contributes nearly percent of the total cotton area and percent of the toal production of the country, having a productivity is higher than in the other two zones. This zone contributes nearly percent of the total cotton area and percent of the total production of the country, having a productivity average of 5620kg lint per ha, which is higher than the national average (359 kg lint per ha). The central zone comprise of primarily rain-fed tracts of Madhya Pradesh, Maharashtra and Gujarat Predominant area is under black soil (vertisols), which is subjected to runoff, erosion of soils and nutrient losses. This area is known as the central hirsutum-arboreum-herbaceum and hybrid zone. Cotton is grown as a mono-crop or in an intercropping system. The zone is characterized by hot semilar climate, with mostly shallow to medium and deep black soils. This zone contribution nearly 65 percent of total cotton area and 52 percent of the total production of the country, having a productivity average of 335 kg lint per ha, which is lower than the national average (359 kg lint per ha). The Southern zone comprising of Andra Pradesh, Karnataka and Tamil nadu is a zone known for growing hirsutum- arboreum- herbaceum- barbadense and hybrid cotton. Cotton cultivation is done both under irrigated and rain- fed conditions. Soil of this zone is black and red and poor in fertility. The area is well known for growing long and extra-long staple and dense cottons. Cotton is grown in the South zone as a sole crop or as an intercrop with onion, chilli, cowpea and maize. Cotton- rice rotation is also followed in this region. This zone contributes nearly 18.5 percent of the total cotton area and percent of the total production of the country having a productivity average of 366 kg lint per ha, which nearer to all India average (359 kg lint per ha) Area, production and Yield of Cotton: 56

21 A. Area under Cotton Production in India: Before the plan period, the cotton area was at a low level of 4,951 million ha. Soon after independence, the Union Ministry of Agriculture gave high priority for increasing cotton production through increasing area under this crop so that the requirement of the mills could be met. Since then 7 th plan period ( ), the area under cotton remained stagnated at 7.5 million ha. The 8 th Five year plan started with rapid strides in cotton area at million ha. Further, during , a record area of million ha was achieved. During and , the cotton area in the country declined again to 8.57 million ha. in the year , the cotton area in our country again picked up to reach 8.73 million ha and thereafter the area went down to 7.66 and 7.63 million hectares in the year and and again came up to the level of 8.77 million hectares in the year Due to good monsoon in the major cotton growing parts of our country and the higher prices fetched all time high of 9.37 million ha during , which is 4.33 percent higher than that in the previous year. A major increase in cotton area was observed in Gujarat, replacing groundnut in the Saurashtra region, followed by Andhra Pradesh, Marginal increase in area was observed in Punjab, Karnataka, Rajasthan and Madhya Pradesh. A decree in the cotton areas was continuously noticed in Tamil nadu and Haryana. Cotton area in Orissa, Utter Pradesh and west Bengal was further increased as compared to the previous year. 57

22 Table-3.5 Year wise Cotton Area, production and Yield (Area in million hectares, production in million bales, yield kg/hectare) Year Area (million ha) Production (million bales) Yield kg/ lint/ha Source: Cotton Advisory Board B. Production of Cotton in India: The production of cotton was below11.8 million bales up to , but thereafter it increased to 17.0 million bales during and recorded an all time high in the year , in the production of million bales. Production of cotton again maintained a stagnant level of 15.8 million 16.5 million bales during to , owing to a severe attack of disease and pests despite high acreage. During , the production further declined to 140 million bales and it decreased to 1306 million bales in the year In the year , the production in the country remained impressive from the year to due to adoption of BT hybrids by the farmers in the country and adoption also of modern technologies. The production of cotton in the year was 29.0 million bales as compared to 28.0 million bales in crop season as per Cotton Advisory Board (CAB) estimates. In the Northern zone a decrease in cotton production over was observed. It was 4.7 million bales during , which decreased to 3.9 million bales during In the central zone, the comparative figures show the utmost increase of 180 percent over the year The production of 58

23 the central zone was million bales in The production of cotton in the South zone was 3.5 million bales in The increased to 6.7 million bales in the production in Andhra Pradesh showed signified increase while the same was static in Karnataka and Tamilnadu. C. Productivity of Cotton in India: The long term productivity profile of North zone (Punjab, Haryana and Rajasthan) has been showing a declining trend. The Northern zone, which contributed to about 37 percent of the national production a decade back, is now contributing only about 25 percent. This is a cause for serious concern because this zone is the most potential cotton growing region having the most productive soil and is almost entirely irrigated. In this zone, the socio-economic status of the farming community is much better as compared to the other cotton growing zones of the country. In the year , the average yield in the country was 302 kg lint per hectare and up o , it remained at par in the year as well. the productivity touched the figure of 567 kg lint per hectare in the year and further decreased to 526 kg lint per hectare during as per the CAB, the cotton yield was 728 kg per hectare which was nearer to world average of 715 kg of lint per hectare and during it again increase to 756 kg of lint per hectare, due to adoption of the Bt verities, accelerated transfers of technology and coordinated development efforts made by Government and other agencies, the country has received positive results in the increase of cotton. However, the increase of about 14 percent in the central zone and 28 percent in the South zone were observed over crop seasons. In the South zone, Andhra Pradesh and Tamil nadu maintained good yield of 670 to 708 kg of lint per ha, but in Karnataka the yield advantages were not observed over the years, having low productivity of 392 kg of lint per ha. The overall 59

24 yield level was 614 kg of lint per ha in the South zone and it was 16 percent higher than that in the crop season. Table-3.6 Area, Production and Yield of Cotton (Compound Growth Rates) Year Percent per annum Area Production Yield Sources: DES, Ministry of Agriculture All India compounded growth rates for area production and yield of cottton from to are indicative of the fact that during the past 5 decades, production and yield have incresed by more than 2 percent per annum (Table-3.6) with minimum increase in are at early stages, that is during to , the higher growth rate in production (4.55 percent ) was probably due to increase in area while in the 1970s and the 1980s the improvement in production and productivity seems o be the result of dissemination and adoption of improved technologies as there was practically very little increase in the cotton area. During to , the increase in area was at the rate of 2.71 percent with Lowe growth rate of 2.29 percent in production with negatives growth in yield (-0.40 percent). The period showed lower growth rate in cotton area (1.90 percent) but the growth and increase in production was percent with 9.87 percent growth rate in yield. 60

25 Table-3.7 State wise area under Cotton in India (in million ha) Years Punjab Haryana Rajastan Gujarat Maharashtra Madhya Pradesh Andra Pradesh Karnataka Tamil Nadu Others Total Source: Cotton Advisory Board

26 Table-3.7 reveals that state wise area of cotton in India during to In , Maharashtra state registered million ha of area followed by Gujarat, Andhra Pradesh and Punjab with million ha, million ha and million ha respectively. Haryana, Rajasthan, Karnataka and Madhya Pradesh recorded the lowest proportions in the area of cotton with million ha, million ha, million ha and million ha, respectively. Tamil nadu state has on the other hand registered the very lowest percent among the cotton growing states in the country. The other states put together contributed only 50,000 ha of area during whereas when the same was compared with Maharashtra state has recorded the highest area under cotton at million ha among the cotton growing area of India followed by Gujarat, Andhra Pradesh, Madhya Pradesh, and Punjab with million ha, million ha and million ha, and million ha, respectively. Further, the other four states which registered only smaller extent of land under cotton with million ha, million ha, 0.39 million ha and 0.12 million ha, respectively, were Haryana, Rajasthan, Karnataka and Tamil nadu. The other states put together contributed only 98,000 ha, which is a little bit higher than the area in

27 Table-3.8 State wise Production of Cotton in India (In million bales) States Punjab Haryana Rajasthan Gujarat Maharashtra Madhya Pradesh AndraPradeh Karnataka Tamil Nadu Others Total Source: Cotton Advisory Board 63

28 Table-3.8: reveals the state wise production of cotton in India to In , the state of Gujarat registered 3.42 million dales in the in the production of cotton followed by Maharashtra, Punjad, Madhya pradeesh and Andhra Pradesh, in that order, with 3.3 million bales, 1.6 million bales, 1.87 million bales and 2.65 million bales, production of cotton, respectively Haryana, Rajasthan, Karnataka and Tamilnadu states have recorded the lowest production of cotton with 1.35 million bales 1.4 million bales, 0.90 million bales and 0.55 million bales in cotton respectively other states put together contributed any a hundred thousand bales of cotton during whereas the same was compared with and Gujarat state has recorded the highest production of cotton at 9.0 million bales among the cotton producing states in India, followed by Maharashtra and Andhra Pradesh with 6.2 million bales and 5.3 million bales, respectively. Karnataka and Tamilnadu states have registered only 0.9 million bales and 0.5 million bales, respectively among the cotton producing states in the country. Further, the other four states which registered with only 1.8 million bales, 1.35 million bales, 1.4 million bales and 0.75 million bales respectively, were Madhya Pradesh, Punjab, Haryana and Rajasthan Tamil Nadu. The other states put together contributed only 200 thousand bales, which is a little bit higher than that of the year

29 Table-3.9 State wise productivity of cotton in India (in kg/ha) States Punjab Haryana Rajasthan Gujarat Maharashtra Madhya Pradesh Andra Pradesh Karnataka Tamil nadu Others Total Source: Cotton Advisory Board 65