ABHIMANU IAS SPEAKS

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.