For Lower Cotton Prices Is Not Justified : Daily Current Affairs

Relevance: GS-3: Major crops-cropping patterns in various parts of the country, – different types of irrigation and irrigation systems storage, transport and marketing of agricultural produce and issues and related constraints; e-technology in the aid of farmers, Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

Key Phrases: Bt cotton, Gossypium, Malvaceae, mechanized picking, Manual Picking, misnomer, unremunerative prices, precision farming, Drip irrigation.

Context:

  • The textile industry’s vociferous demands will hit cotton farmers, who are facing the brunt of rising costs.

Why in News?

  • Cotton farmers have been hit by the double whammy of rising costs and unremunerative prices.
  • The recent rise in the price of cotton yarn seems to have hit the textile manufacturers hard, so, a large section of participants involved in value chain products of cotton has called on the government to take measures to arrest the price rise, on the contrary ,farmers are in support of price rise.

Note: Remunerative price is a minimum price that is determined by CCEA (cabinet committee on economic affairs) for the sugarcane and sugar mills to purchase sugar from farmers at this price.

Cotton cultivation

  • Cotton has been cultivated as an important commercial crop in India for many centuries now. The area under cotton increased from 76 lakh hectares (lha) in 1960-61 to about 134 lha in 2019-20. Although the crop is grown in various States, — Maharashtra, Gujarat and Telangana account for about 70 per cent of India's total area in 2019-20. But, the area under cotton declined sharply from 3.96 lha to 1.69 lha during the same period in Tamil Nadu, where a large section of textile companies is demanding a reduction in yarn price.
  • Although India is the world's largest cultivator of cotton with an area of 37 per cent, its yield per hectare is one of the lowest. The yield of cotton increased from 152 kg/ha in 1980-81 to only 190 kg/ha in 2000-01. So India's share in global cotton production was low till the early part of 2000s.
  • But, this scenario completely changed after the introduction of Bt cotton in 2002. While the area under cotton has increased significantly from 77 lha in 2002-03 to about 134 lha in 2019-20, its production increased from 86 lakh bales (one bale is 170 kg) to 352 lakh bales during the same period.

Are the demands justified?

  • After a long time, the price of cotton has started moving up allowing farmers to reap some profit from its cultivation. Therefore, the demands of 11 per cent import duty on cotton and a higher tax to restrict cotton exports are not justified.
  • Similarly, futures trade in cotton has been in existence for many years now. But the textile manufacturers now have vociferously demanded its halt. It is a misnomer that the price of cotton increases due to futures contract because India's share in the total global cotton futures trade was just 0.27 per cent in 2021.
  • Cotton price started rising recently as the textile production, which was paralysed during the lockdown , has resumed at a rapid pace around the world, increasing the demand for yarn. This is purely a demand-supply mismatch, which is a reflection of the market economy.
  • Due to the continuous rise in the cost of cultivation and repeated losses, the area under cotton in Tamil Nadu alone declined by about 2.27 lha between 1960-61 and 2019-20. If remunerative prices for cotton are not provided, its production may decline in future which may force the textile manufacturers to import cotton at a higher price.
  • That will have a deleterious impact on the textile industry. The constant demand for lower agriculture commodity prices also affect the welfare of farmers.

Do you know?

  • Cotton is a shrub native to tropical and subtropical regions around the world, including the America, Africa, Egypt and India.
  • Cotton is a soft, fluffy staple fibre that grows in a boll, or protective case, around the seeds of the cotton plants of the genus ,in the mallow family Malvaceae.
  • India is the world's largest producer of cotton.
  • Top cotton producing states in India are 1.Gujrat,2.Maharashtra,3.Telangana.

Problems faced by cotton cultivators in India

  1. Absence of modern technology : Absence of modern technology in cultivation as well as ginning has affected the yield which is not only low but also contaminated. Cotton is vulnerable to contamination at the harvesting ,marketing and ginning stages, if proper care is not taken.
  2. Fluctuating market prices: Fluctuating market prices and inability to compete in global markets that reflect low prices due to significantly large subsidy to cotton farmers by western countries It has been difficult to develop a globally – competitive cotton industry in India because of the average quality of cotton that is produced.
  3. Water quantity and quality issues : Under poor management practices cotton can contribute to over-consumption of water, depending on where and how it is grown. Various factors affect how much water is used, and how much pollution is generated. These include whether the cotton is rain-fed, irrigation methods used, which types and quantities of fertilizers and pesticide are applied, and soil types. Worldwide, an estimated 60% of our cotton is grown in irrigated fields and 40% under rain-fed conditions. Unless managed properly, cotton production can use and pollute significant amounts of water. Irrigation farmers use groundwater and/or surface water, which, if not managed or regulated, depletes freshwater resources, particularly in water stressed regions.
  4. Inappropriate and excessive use of pesticides and fertilizers: When not grown according to sustainable practices, cotton production can be a large consumer of pesticides and fertilizers. While their use has reduced over recent years, cotton currently uses 2.5% of the world’s arable land, yet 10% of all agricultural chemicals like those found in pesticides and fertilizers. Pesticides and fertilizers, inappropriately used, can seriously pollute water sources and decrease soil fertility. They also can have significantly harmful effects on human health and biodiversity. Fertilizer production and use can contribute to greenhouse gas emissions.
  5. Soil depletion: Like other crops, cotton farming can lead to land clearing, soil erosion and contamination, and loss of soil biodiversity. Poorly managed, it can lead to the loss of soil fertility and decline in productivity.
  6. Manual Picking: Among nations growing cotton ,cotton picking is completely manual in India. Not many varieties of cotton produced are available for mechanized plucking. Mechanised picking is better than hand –picking since the latter can lead to contamination. However ,the most important thing to be done before mechanized picking is to defoliate the plant .No appropriate defoliant is available in India leading to increased cost of production.

The steps that need to be taken to improve the situation.

  • Steps could be taken to improve logistics for transporting cotton, so that cotton fibre can be supplied from surplus to deficient areas in a clean manner, and it does not get contaminated.
  • Improving Irrigation facilities and water harnessing are considered imperative for enhancing production and lowering its dependence on monsoon .Drip Irrigation system could be adopted for better water management.
  • Initiative should be taken to increase awareness among farmers for adoption of Rain Harvesting ,soil moisture conservation techniques, suitable agronomic practices in order to increase the utilization of rain water .New farming practices like Precision Farming should also be encouraged to increase productivity.

Conclusion

  • At present Indian cotton textile material, the industry is one of the largest and important sectors that contributes the economy in terms of Foreign Exchange Earnings. The textile industry also has the potential to grow further and achieve new heights in a globalized economy.
  • Also, according to the new textile policies cotton textile industry would be made available in adequate quantities for reasonable pricing in near future.
  • Technology has to be multi-directional in India when compared to other countries, and rising in various stages of technological evolvement human factor has created a special pattern of activities and long-lasting employment.

Source: The Hindu BL

Mains Question:

Q. Briefly discuss the various challenges faced by cotton cultivators in India .Suggest some steps to overcome them.250 words (15 marks).