1. COTTON SECTOR IN INDIA ESTIMATING COTTON USE IN THE COUNTRY Cotton is one of the principal crops and major raw materials for the textile industry and generating employment for nearly 60 million farmers in the country. India ranks first in the cultivation of cotton in the world. The acreage under cotton in India has reached a record level of 11.16 million hectares in the current cotton season 2010 11. Currently, India is second largest producer of cotton, contributing about 21.39% of the world cotton production. The domestic Man Made fibre to Cotton consumption ratio in India is 41:59, visà vis 60:40 globally. India s cotton economy is growing by leaps and bounds. Production, productivity and exports are showing upswing. The cotton production of 31.2 million bales, clocked a growth of more than 96.46% in 2010 11, compared to the production of 15.8 million bales in 2001 02. The corresponding productivity has increased from 308 kg/hectare in 2001 02 to 475 kg/hectare in 2010 11. Consumptions have grown at a rate of 59.88% in 2010 11 (27.5 million bales), compared to the 2001 02 (17.2 million bales). With the improvement in the quality of Indian cotton at par with International level in terms of contamination and trash content, the demand for Indian cotton domestically and internationally has increased over the years. As a result, the country has emerged as the second largest exporter of cotton in the world, after USA. The cotton (kapas) forms 2/3rd portion of seed, 1/3rd portion of lint. While the lint is used for manufacturing yarn, remaining 2/3rd portion are utilized for manufacturing byproducts viz., linters, hulls, cottonseed cake and cottonseed oil which increase the returns on investment on cotton farming. Since these by products of cotton crop provide food, feed and valuable industrial products, cotton seed is rightly termed as a Golden Goose.
CAB DATA ON COTTON PRODUCTION, CONSUMPTION, IMPORT AND EXPORT (Prodn, Con, Imp & Exp in million bales of 170 kgs each) (Consumption=Mill+Non mill+ssi) Cotton Year Production Consumption Import Export 1991 92 11.90 11.109 0.300 0.077 1992 93 13.80 12.501 0.115 1.377 1993 94 12.15 12.700 0.300 0.390 1994 95 13.85 13.504 0.589 0.108 1995 96 17.02 15.429 0.050 0.800 1996 97 17.79 17.016 0.030 1.682 1997 98 15.80 15.901 0.413 0.350 1998 99 16.50 16.536 0.787 0.101 1999 00 15.60 17.336 2.201 0.065 2000 01 14.00 17.303 2.213 0.060 2001 02 15.80 17.176 2.526 0.050 2002 03 13.60 16.883 1.767 0.084 2003 04 17.90 17.710 0.721 1.211 2004 05 24.30 19.503 1.217 0.914 2005 06 24.10 21.900 0.500 4.700 2006 07 28.00 23.203 0.553 5.800 2007 08 30.70 23.688 0.638 8.850 2008 09 29.00 22.900 1.000 3.500 2009 10 (P)* 29.50 25.000 0.700 8.300 2010 11 (P)* 31.20 27.500 0.500 5.500 P Provisional * As estimated by CAB on 26.02.2011
Crop size, Mill consumption, Import and Export of cotton 2. FACTORS GOVERNING SELF SUFFICIENCY OF COTTON IN THE COUNTRY Since 2002 03, the Government had commercially released Bacillus Thuringiensis (Bt) cotton, which is pest resistant, to improve the cotton yield and quality. This new application of technologies i.e. biotechnology has resulted in more cotton produced from lands already in production, more efficient use of water resources and less use of farm chemicals. However, other than Bt.cotton, the following factors are also having contributed to increase in cotton productivity: Research and development activities for high yielding seeds. Other hybrid seeds Favourable agro climatic conditions Focus in recent years on timely pest control measures including the integrated Pest Management Technology. Transfer of technology including better farm practices through the efforts of Mini Mission I, II, III & IV of TMC. The Indian textile units resort to the need based import only for extra long staple cotton 32.5 mm and above due to the resultant gaps in the domestic production and consumption.
3. STATUS OF TEXTILE INDUSTRY: INDIA The Indian textile industry comprises numerous small scale, decentralized and fragmented units alongwith large sized integrated enterprises known as composite mills. Small scale sector is largely unorganized and labour intensive while large scale enterprises are mostly organized and capital intensive. There has been phenomenal growth in the textile industry in last two decades in terms of installed spindles and yarn production. The pace of modernization achieved by the Indian spinning industry received a fillip after a launch of Technology Upgradation Fund Scheme (TUFS) by the Govt. of India in April 1999. The robust growth of spinning industry and its modernization has led to sustained growth in the cotton consumption over the years. The domestic textile industry comprises of 1,951 spinning mills and 185 composite mills with an installed capacity of 39.54 million spindles, 5,23,000 open end rotors and 57,000 looms in the organized sector alongwith another 1,385 small scale spinning units with 4.78 million spindles and about 2,17,000 rotors in the small scale decentralized sector as on 31.12.2010. SPINDLES AND ROTORS GROWTH SCENARIO YEAR (April March) SPINDLES ROTORS 1999 2000 37.081 0.444 2000 2001 37.907 0.454 2001 2002 38.329 0.480 2002 2003 39.022 0.469 2003 2004 37.033 0.482 2004 2005 37.470 0.500 2005 2006 37.510 0.520 2006 2007 39.500 0.601 2007 2008 39.070 0.621 2008 2009 41.340 0.659 2009 2010 42.040 0.675 2010 2011 (upto Dec 2010) 44.320 0.740
SPINDLES AND ROTORS GROWTH SCENARIO CAPACITY UTILISATION OF INSTALLED SPINDLES AND LOOMS Year (April March) % Utilisation of Installed Spindles % Utilisation of Installed Looms 2001 02 82 42 2002 03 80 41 2003 04 83 53 2004 05 87 58 2005 06 88 61 2006 07 89 62 2007 08 90 61 2008 09 88 55 2009 10 86 63
CAPACITY UTILISATION OF INSTALLED SPINDLES AND LOOMS 90 80 Utilisation % 70 60 50 40 30 20 10 0 % Utilisation of Installed Spindles % Utilisation of Installed Looms Year (Apr March)
SEGMENT WISE CONSUMPTION OF COTTON Qty in million bales Cotton Year Mill consumption Small Mill consumption Non Mill consumption 2001 02 14.70 1.17 1.30 2002 03 14.24 1.16 1.47 2003 04 15.04 1.30 1.37 2004 05 16.39 1.65 1.44 2005 06 18.00 1.90 2.00 2006 07 19.48 2.12 1.58 2007 08 19.56 2.20 1.91 2008 09 19.00 2.00 1.90 2009 10 (P) 20.70 2.30 2.00 2010 11 (P) 23.20 2.60 1.70 P Provisional
Cotton Consumption by Non- SSI, SSI Units and Non Mill Sector 4. LINT COTTON Sources of Consumption of Lint Cotton (i) Mill sector for the production of spinning of yarn SSI and Non SSI mills (ii) Non mill sector KVIC, Surgical cotton units, Mattress making units, Households, Temples and Others i) Estimation of Consumption at Mill Sector Mills are organized sector where periodic data gathering on consumption pattern was enabled by prevalent legislation like Essential Commodity Act for more than 50 years of independence in the country. The pattern is, therefore, well set although the legal obligation for data submission to the government is no more prevalent. The method was very direct and fairly accurate. Methodology for arriving at cotton consumption by the spinning units The office of the Textile Commissioner maintains data base of spinning mills which is updated periodically. Statistical returns are prescribed by this office to submit data on consumption of cotton and other fibre on monthly basis. In case of non submission of returns by the unit in any month, information submitted by unit in previous period is carried forward. Data on consumption of
cotton submitted by the units is processed, aggregated and disseminated to concerned agencies. The monthly data is also placed in public domain through the office website www.txcindia.gov.in This data is placed before the Cotton Advisory Board (CAB) for arriving at the cotton consumption particularly for mill and small mill cotton consumption. Besides above data, the representatives of Confederation of Indian Textile Industry (CITI), Cotton Association of India, Northern India Textile Manufacturers Association (NITMA), Southern India Mills Association, and All India Cooperative Cotton Federation etc. also submit their view point s alongwith cotton consumption data to the CAB for arriving at cotton consumption by consensus. Improvements desired in present system Since, 100% compliance of reporting of the data is not observed in any month, hence, a good deal of extrapolation is required. The data is not submitted timely and keeps trickling for a long period, therefore, the results are required to be kept in provisional status. The ginning activity is a basic data source also existing in decentralized sector making it difficult to get compliance of data collection. The present system of data collection is not a web based and linked system: that is why the data loses its utility for purpose of immediate responses vis a vis policy decision like imports/ exports monitoring, fiscal measures applications, etc. Solutions being tried Creating a statutory authority in the office of Textile Commissioner under the Collection of Statistics Act recently adopted by the Govt. of India. Establishing network web based data collection system in public domain. Reform in APMCs for better recording of transactions. ii) Estimation of Consumption at Non Mill Sector Presently there is no instrument for a periodical data collection because the use is in a highly decentralized manner. So far the data is available out of two surveys done in the year 1993 and 1995. Third survey is on way. Periodicity of the survey has to be increased and should be regularly done every three years. @@@@@@@@@