Government forced to lift ban on cotton exports
- The government has decided to lift the ban on cotton exports
following widespread criticism of the move, even by some of its key allies.
The Ban
- On March 5, the Commerce Ministry had imposed the ban on cotton
exports on grounds that the country had
already shipped 10 lakh bales more than the exportable surplus and that had
reduced domestic availability.
Opposition to ban:
- States of Punjab, Gujarat and Maharashtra as well as
Agriculture Minister Sharad Pawar
- Their argument- The ban will lower domestic prices and hurt planting
prospects in next crop season.
Impact:
- The Centre s decision is expected to
benefit farmers of Punjab s Malwa belt. They had suffered big losses this
season with their produce sold at almost half the price of what it saw last
year. Last year, farmers had sold their produce at Rs 7,200 a quintal last year
as against Rs 4,100-Rs 4,200 a quintal this season.
Country’s main cotton-producing states:
- Maharashtra, Gujarat & Punjab
Largest cotton producing countries:
- China and India, with annual
production of about 34 million bales and 24 million bales, respectively
Leading exporters of cotton in 2011:
- United States
- India
- Brazil
- Australia
- Uzbekistan
The largest non-producing importers:
- Korea, Taiwan, Russia, Hong
Kong and Japan
About Cotton:
Cotton is a natural fiber of
vegetable origin, like linen, jute or hemp and composed of cellulose. Cotton is
the fruit of cotton plant.
The cotton is a variety of plants of
the genus Gossypium, belonging to
the Malvacae family.
Varieties of Cotton:
- There are four major cotton species of cultivated cotton, of which two are
diploid (Gossypium arboreum and G herbaceum) and the other two
tetraploid (G hirsutum and G barbadense).
- India is the only country to grow
all four species of cultivated cotton.
Bt Cotton:
- The Bt cotton variety contains a
foreign gene obtained from bacillus
thuringiensis. This bacterial gene, introduced genetically into the cotton
seeds, protects the plants from bollworm
(A. lepidoptora), a major pest of cotton.
- The worm feeding on the leaves of a
BT cotton plant becomes lethargic and sleepy, thereby causing less damage to
the plant.
- Use of Bt cotton has led to a 3% 27
increase in cotton yield in countries where it is grown.
New Bt Cotton seed:
- Genetic Engineering Approval
Committee (GEAC) of the Government of India has approved commercial
distribution of a new variety of Bt Cotton seed, developed jointly by US
multinational Monsanto, Gujarat Seed
Supply Corporation (GSSC) and Navsari Agricultural University.
- The new seed is expected to raise
cotton productivity by up to 30 per cent as against the current Bt Cotton yield
of 11 quintals per acre.
- The new seed has been developed by
injecting Bt genes into two premium local cotton seed varieties called Sankar 6 and Sankar 8.
- With Monsanto's Bt genes being
injected into Sankar 6 and Sankar 8, farmers will no more have to depend on
private players for getting Bt cotton seeds. They will get cheaper and better
variety of Bt cotton seeds from the state-owned GSSC, forcing the private
players to bring down present high seed prices
Importance of Cotton in India:
- Cotton is one of the principal crops
of India and plays a vital role in the country s economic growth by providing
substantial employment and making significant contributions to export earnings.
- The cotton cultivation sector not
only engages around 6 million farmers, but also involved another about 40 to 50
million people relating to cotton cultivation, cotton trade and its
processing.
- The Government of India fixes the
Minimum Support Price for cotton and in this price several government agencies
like Cotton Corporation of India and Maharashtra State Co-operative Cotton
Growers' Marketing Federation procure cotton.
- The Indian cotton cultivation sector
has not only been increasing its productivity, but also has been undergoing a
drastic improvement in terms of quality of cotton. Cultivation of hybrids, Bt
cotton varieties, latest production technology and plant protection
technologies, adoption of scientific and agronomic practices by farmers,
increase in area under irrigation seed, Government policies such as giving
greater force to research and development in cotton, encouraging use of quality
seeds and pesticides and price support, are all responsible for the present
drastic changes in Indian cotton scenario.