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Technology Mission on Cotton
Introduction
With the liberalization of world trade following
the progressive phasing out of the Multi Fibre Arrangement (MFA),
quality and price competitiveness are becoming the most important
criteria for good export performance of Indian Textiles. Even for
domestic use the textile goods will have to excel in quality and be
competitive in price because the Indian markets would become flooded
with foreign goods that will find unlimited access into our country
after 2004.
Two important requirements for good performance of Indian
textiles in the domestic and export markets are
(i) advanced manufacturing technology and
(ii) availability of quality raw materials. In 1999-2000, the Government
of India launched two schemes for the well-being of the textile economy
as a whole. One is the Technical Upgradation Fund Scheme (TUFs) for modernization
of the textile production and processing industries. The other is the
Technology Mission on Cotton (TMC) which is a multi-dimensional scheme
with four compent Mini Missions to improve the availability of good quality
cotton to the Indian textile industry and at the same time ensure that
the average farmer earns adequate profit from cotton cultivation. This
paper discusses the achievements so far made under Mini Missions III &
IV of TMC.
Importance Of Textiles in National Economy
Cotton is a crop that exerts considerable influence
on India’s economy particularly textiles. It secures livelihood for
about 60 million people engaged in various vocations related to farming
trade and textile industry. One-third of India’s export earnings comes
from textiles and 20% from cotton textiles alone. Strengthening of
the raw material base by raising productivity and quality of cotton
to match international standards is necessary to secure a prominent
and sustainable global standing for Indian textiles.
Indian Cotton Scenario
India is the country with largest area in the world
under cotton (around 7.8 million hectares approximately). However,
it is only the third largest producer of cotton in the world after
China and USA (Production: 140 lakh bales in 2002-03). Yield is, however,
one of the lowest in the world – less than 300 kg/ha (world average:
631 kg/ha, Australia: 1277 kg/ha, China: 1177 kg/ha, USA: 743 kg/ha).
Poor productivity of cotton in India is attributable to factories
such as low yield potential of most varieties, absence of irrigation
facility in two-thirds of the area under this crop, high pest incidence,
etc.
India has the distinction of cultivating cotton of
all staple classes – short, medium, long and extra long. This is the
only country in the world where cottons belonging to all four major
species are grown. Commercial cultivation of hybrid cotton first started
in India where at present about 40% of production is of hybrids. The
cost of cotton cultivation in India has been increasing due to large
pesticide consumption. As a result the profitability of cultivation
has eroded considerably over the years. It is ironical that despite
adequate domestic production, mills are buying imported cotton of
superior fibre quality at low price available with credit facility.
Such imports tend to reduce the demand for Indian cotton, to the detriment
of the average grower.
The cotton ginning scenario till recently presented
a dismal picture. Ginning & Pressing factories are many but machines
are old, inefficient and poorly maintained. Pre-cleaning of cotton
as an exception rather than the rule. Materials handling is mostly
done by manual means. As a result, the baled cotton is trashy and
contaminated. Ginneries have remained indifferent to modernization
because most mills were not willing to pay adequate premium for clean
cotton.
Deficiencies in the Cotton Sector:
The raw cotton sector in India suffers from a plethora
of deficiencies. Some of these are listed below :
- High Cost of cultivation
- Poor quality of seeds and pesticides
- Multiplicity of cotton varieties Leading to rampant mixing
- Poor fibre attributes of most varieties of cotton particularly
in respect of micronaire and strength
- Tardy transfer of agricultural technologies from research
farms to the farmers’ fields
- Improper handling of harvested cotton at the farm yard leading
to contamination
- Poor infrastructure at market yards also contribute to further
addition of impurities numbering over 20 types.
- High Trash content in cotton (5%-8%) despite being handpicked
resulting from the absence of pre-cleaning and lint cleaning at ginneries
Technology Mission on Cotton (TMC):
In order to remove the deficiencies in the cotton
sector and to place the cotton economy on a sound footing within a
limited time frame, the Government of India set up the Technology
Mission on Cotton. Formally launched on 19th February 2000
by the Prime Minister, the Mission was intended for a 5-year term
commencing from 1999-2000, but it has since been extended by 3 more
years to cover the entire Xth Plan period ending with 2006-07.
The Technology Mission on Cotton (TMC) has four component
Mini Missions, as follows:
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Mini Mission I
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Cotton Research & Tech. Generation
Nodal Agency : ICAR
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Mini Mission II
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Transfer of Technology & Development
Nodal Agency : DAC-MOA
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Mini Mission III
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Development of Market Infrastructure
Modernization/upgradation of G&P factories
Nodal Agency : MM-III & IV - MOT
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Mini Mission IV
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The objectives of TMC are the following:
Firstly, to augment the income of cotton growers
and ensure availability of quality cotton to industry in required
quantities by :
- improving the quality of cotton particularly in respect of staple length,
micronaire and strength;
- increasing the productivity of cotton; and
- reducing the cost of cultivation.
Secondly, to reduce contamination in
cotton by :
- improving infrastructure of cotton agricultural markets and
- modernizing Ginning & Pressing Factories.
Mini Mission - I:
The broad objective of Mini Mission – I is the improvement
of production, productivity and quality of cotton through wide-ranging
R & D endeavours. A total of 8 programmes have been so far taken
up under this Mini Mission. The number of research projects under
these 8 programmes is 23. The project involves all the 13 Agricultural
Universities in the cotton growing State besides CICR, Nagpur and
CIRCOT, Mumbai.
Several breeding materials have been evolved under
diploid and tetraploid improvement projects with desirable fibre parameters
and resistance to biotic and a biotic stresses. Soil site characteristics
for the suitability of cotton production have been identified. Location-specific
IPM modules have been developed and demonstrated on a large scale.
Technology intervention programme has been initiated in different
States.
Mini Mission – II:
The broad objective of Mini Mission – II is to reach
the technologies developed in research farms and laboratories to the
farmers’ fields. The Department of Agriculture & Co-operation
under the Ministry of Agriculture, Government of India is the nodal
agency for this Mini Mission. The programme is being implemented through
the Directorate of Cotton Development with the active participation
of the State Departments of Agriculture in more or less the same manner
as Integrated Cotton Development Programme (ICDP).
The Mini Mission – II programme has 12 different
components for most of which the Government of India share would be
as high as 75% while the remaining 25% will be borne by the concerned
State Government. The components include seed subsidy, demonstration
of technologies, input supply.
With the information transferred to the farmers on
the methods of reducing the quantum of inputs and maximizing productivity
of cotton, Mini Mission – II hopes to bring about a transformation
in the cotton production scenario in the country. Increase in yield
targeted to be 500 kg/ha by 2006-07 in cotton cultivation in the years
to come.
Mini Mission – III – Why Mini Mission – III ?
Indian cotton is regarded as the most unclean cotton
with high trash and contamination levels. Over 20 types of contaminants
are known to get mixed with cotton at different stages beginning with
harvesting.
It is, however, at the market yard that a major part
of contaminants gets added to raw cotton. The aim of Mini Missions
III is to plug the sources of contamination. Such that no foreign
matter is added to cotton during its handling at the market yard.
For this, the infrastructural facilities at the markets are being
improved through this Mini Mission.
Funding of Market Yard Development : TMC’s
Role
Under Mini Mission III, new markets are being developed
and existing markets improved. The concerned APMC with the participation
of the Agricultural Marketing Dept. of the State Government would
carry out the project with. Financial assistance from the GOI to the
extent of 60% of the project cost subject to ceilings as shown below
:-
| Category |
Ceiling |
| Improvement |
Rs. 90.00 lakh |
| New Market |
Rs. 150.00 lakh |
Components of Market Development package :
Market yards being developed through Mini Mission
III will have basic infrastructure as well as a package of additional
facilities. While basic infrastructure will serve to avert contamination
of cotton at the market premises, the additional facilities will bring
wide ranging benefits to the farmer community. The improvements thus
sought to be made in markets are listed below :-
(A) I. Essential facilities :
- Cemented Roads
- Pucca Platforms
- Sheds
- Godown
- Parking Place
- Fire fight Arrangements
- Weigh Bridge
II. Essential Amenities :
- Farmers’ Rest House
- Canteen for Farmers
- Drinking Water
- Sanitation
III. Desirable Systems :
- Proper auction/tender system to ensure fair deal for the
farmer
- Maintenance of proper records to ensure transparency
- Timely payment to the farmers
- Regular maintenance of cleanliness in the premises
(B) Additional Facilities/Activities
:
Mini Missions III & IV are not only achieving
the targets set for IXth as well as Xth Plans,
but have taken several steps to improve the Income of
cotton growers. Some of the steps taken are -
- Setting up of Farmers’ Information Centres (FICs) – Equipped
with modern IT facilities, the FICs will have a Kiosk as well as an
Interactive Voice Response System (IVRS) which will give information
to cotton growers in respect of all the activities relating to crop
management starting from soil test, climatic conditions, rainfall, suitability
of seeds, availability of inputs, market information in a particular
mandi & nearby mandis, other States, in the country and also in
the world.
- Input Supply Shops – All market yards developed under TMC are
being equipped with input supply shops, providing good quality seeds,
fertilizers, pesticides and bio-agents at reasonable price to cotton
growers.
- Grading Laboratory – Each market yard taken up under TMC is
being equipped with a Cotton Testing Laboratory to ensure that the farmer
gets price matching with cotton quality and does not fall victim to
unfair trade.
- Awareness Meetings – Awareness meetings are held at State level
as well as at the APMC level in order to educate farmers, market functionaries
and ginners about the perils of cotton contamination and the ways and
means to avert it so that cotton quality is preserved.
- Best Management Practices (BMPs) – Literature prepared by TMC
Cell in the form of Do’s and Don’ts in local language for reducing contamination
at farm level, market yard level and in G & P factories and thus
improve cotton quality is distributed in Awareness meetings for the
information of all concerned.
BMPs in abridged form are also displayed
on Awareness Boards at market yards and ginning factories.
Targets for Market Yard Development:
During the 8-year period from 1999-2000 to 2006-2007,
Mini Mission III intends to develop as many as 111 market yards either
through improvement of existing markets or by setting up new ones.
These market yards are expected to handle about 60% of India’s cotton
which could thus be delivered to ginneries in a clean, contamination-free
from by 2006-2007.
Highlights of Market Development – Mini Mission – III
- All the 111 market development projects targeted under Mini Mission
– III have been already approved, of which 61 have been completed.
- The total project cost of the 111 projects : Rs. 194.23 crore; TMC
share Rs.97.45 crore.
- State-wise break-up of market yards taken up for development is shown
in the Table below:
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State
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Total
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Punjab
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1
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Haryana
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11
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Rajasthan
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11
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Madhya Pradesh
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9
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Gujarat
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25
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Andhra Pradesh
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20
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Karnataka
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10
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Tamil Nadu
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4
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Orissa
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5
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Maharashtra
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15
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Total
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111
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Mini Mission – IV – Why Mini Mission – IV ?
There are about 4000 G & P factories in India
though the country needs only 1000-1200 units of economically viable
size with production capacity of about 8 bales per hour. Most of the
existing factories are small in size and very few among them are composite
units with both ginning and pressing facilities. Ginning machines
are old, and cleaning machines are rare. Trash level is, therefore,
very high (5%-8% including leaf bits and immature locks referred to
as kawdi). Lack of adequate civil infrastructure and employment
of manual labour for handling cotton at ginneries lead to contamination
for which Indian cotton has attained notoriety. The objective of Mini
Mission – IV is to equip ginneries with modern machinery and adequate
civil infrastructure whereby trash level could be brought down and
contamination largely averted.
Since the textile mills are required to compete in
the world markets, unless quality cotton is made available to them
in the domestic market they would go in for more and more of imports
which will be very harmful for our cotton growers and also for the
G & P industry in our country. The ginners who do not opt for
modernization will find it difficult to survive as they will not be
able to sell their cotton either in the domestic market or in exports.
Modernization of G & P factories would also bring
considerable benefits not only to the farmers, who will be able to
realizes better price for their produce but to G & P factory owners
also. Most of the mills in India are paying good premium for cotton
processed in modern G & P factories, who follow all the modern
systems installed in the factory and are also following proper management
practices.
Present trash levels in Indian cottons are in the range
of 5% - 8% Modernized factories will show trash content within TMC norms
shown in the table below :
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Staple Class
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Trash Limit (%)
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Extra long
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2.0
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Long & Superior Medium
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3.0
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Medium & Short
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3.5
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Closed boll types
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6.0
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It is encouraging to note that many of G & P
units modernized through MM-IV are maintaining trash level of as low
as 1% - 11/2% thus performing even better than the TMC’s expectation.
Funding of G & P Modernization Projects :
TMC offers financial assistance at the rate of 25%
of the cost of modernization to G & P units subject to ceilings
as shown below :
| Item |
Ceiling |
| General items of machinery & Infrastructure |
Rs.20.00 lakh |
| Modern Bale Press |
Rs.7.00 lakh |
| HVI/MVI machine |
Rs.4.00 lakh |
Components of Modernization Package:
A factory after modernization should have the following
infrastructure:
Machinery:
- Ginning machines with auto feeders
- Pre-cleaner & Lint cleaner
- Automatic conveyors for kapas, lint & seed
- Bale press
- Humidifiers, Fire Hydrants, Weight bridge.
Civil Infrastructure:
- Platforms/sheds for storing kapas, lint, seeds and bales
- Roads, compound wall, and
- Buildings to house machines.
Targets for Modernization of Ginneries :
Mini Mission IV proposes to modernize as many as
500 G & P factories during its 8-year tenure. With the improvement
of 500 factories it could be expected that about 40% to 50% of India’s
cotton would be ginned and baled in a low-trash contamination-free
form to the textile mills in our country by the year 2006-2007.
Highlights of G & P Modernization – Mini Mission – IV
:
- So far 372 modernization projects have been taken up by Mini Mission
IV, of which 210 projects have been completed.
- Total project cost of all 372 projects Rs.461.88 crore; TMC share
: Rs.82.25 crore.
State-Wise break-up of factories under modernization :
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State
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Total
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Punjab
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5
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Haryana
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0
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Rajasthan
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1
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Gujarat
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196
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Madhya Pradesh
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19
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Orissa
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2
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Maharashtra
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139
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Andhra Pradesh
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5
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Karnataka
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5
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Tamil Nadu
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0
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Total
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372
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Impact Assessment and Grading – Mini Missions III & IV:
To examne how far the investment made for improement
of market yards and ginneries through TMC has been beneficial
to the raw cotton sector an impact assessment is being conducted.
Also being simultaneously carried out is the grading of market
yards and ginning units modernized with TMC assistance. Grades
thus assigned will help textile mills in procuring good quality
cotton.
Methodologies have been worked out by TMc in
consultation with trade and industry for impact assessment and
grading of markets and ginneries whereby objective evaluation
of effect of modernization on the quality of cotton becomes possible.
While impact assessment will be based on the quality of infrastructural
components, grade rating will take account of both infrastructure
and the management style. The actual assessment is carried out
independently by an official from any one of the Textile Research
Association (TRAs), Textiles Committee (TC) or Central Institute
for Research on Cotton Technology (CIRCOT). All factories are
put to this assessment after modernization is completed and TMC
share is paid.
So far 145 G & P factories and 21 market
yards that have completed the modernization projects, have been
assessed for impact and grade. Highlights of the assessement are
given in the table below :
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Total No. of factories assessed
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G & P Units
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Market Yards
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145
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21
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Impact Rating :
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AAA
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1
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--
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AA
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88
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8
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A
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55
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13
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Grade Rating :
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AAA
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2
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--
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AA
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58
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3
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A
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74
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8
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B
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11
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10
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Integrated Cotton Cultivation (ICC) (Contract Farming):
As discussed above, the production, productivity
and quality of Indian cotton are sought to be improved through the
Technology Mission on Cotton (TMC) such that the growers and the textile
industry are both benefited. There is no doubt whatsoever that TMC
scheme is producing good results. A Visionary linkage scheme called
Integrated Cotton Cultivation (ICC) that will supplement and synergize
the efforts of TMC was recently mooted by the Ministry of Textiles,
Government of India, the details of which are discussed in this section.
ICC is an organized farming scheme to link cotton
production with cotton consumption. In this secheme, a group of growers
will cultivate a particular variety of cotton required by a spinning
mill. With inputs and scientific support received from exports, the
farmer will produce more at lowest possible cost. The farmer and the
mill will both stand to benefit.
As mentioned already, the Indian cotton is known
for admixing of varieties, thanks to the typically Indian conditions
such as the presence of a plethora of varieties (over 1500), the smallness
of farms (2 Ha per capita) and the farmer’s freedom to select varieties
at his own discretion. Mixing makes bales unpredictable in spinning
performance, and the mills are unable to produce consistent and high
quality yarns, which alone command premium price in the export market.
For this reason, many of the EOU’s prefer to use foreign cotton known
for its uniformity of characteristics.
It is also a well-known fact that the average farmer
in India does not have adequate knowledge about the type of cotton
needed by mills or the methods of marketing. Nor is he exposed to
scientific methods of farming that can raise productivity and minimize
input costs. As a result profit margin in cotton farming has eroded
over the years, compelling many farmers to switch over to other crops.
Objectives of ICC :
The primary objective of ICC is to make cotton
of consistent quality available to the user industry while at the same
improve the productivity by providing the farmer with quality inputs such
as seed, fertilizers and pesticides besides know-how on modern methods
of crop management so that cotton cultivation becomes a remunerative vocation
for the average Indian grower. ICC will thus transform subsistence agriculture
into commercial agriculture.
How to Organize ICC :
In the TMc model of ICC, a coordinating Agency (CA)
will organize the
farming. The CA could be a G & P factory owner, a
millowner or a trader. Any organization or corporate body can also organize
ICC. The CA will select an area of assured rainfall or one with irrigation
facility. The CA will also identify farmers in a few adjoining villages
who will have an ownership of a total of least 1000 acres of land such
that the scheme will produce about 2000 bales of octton. It will be advantageous
to induct all the farmers in the villages thus selected.
The farmers should be asked to form an Association,
not necessarily a registered one. The CA will interact normally only with
the representatives of the Association who will have the authority from
the farmers to deal with CA on their behalf. The farmers will sign MOUs
with CA to (I) cultivate a particular variety (ii) follow instructions
from CA and (iii) sell the entire produce to the CA at prevailing market
price. The CA in turn will undertake to buy the entire crop at the then
ruling market price with or without premium.
Crop Management :
The CA in consultation with experts will select the variety
on the basis of local agro climatic conditions and market demands. Arrangement
is to be made with a seed company to supply good quality seed of the chosen
variety at wholesale price for distribution to farmers who will make cash
payment directly to the company or through CA. The CA should arrange with
the nearest Agricultural University or Krishi Vigyan Kendra to provide
location-specific technology to the farmers. Advice on crop management
particularly with regard to combating pests is vital for minimizing input
costs. The CA should arrange to supply fertilizers to the farmers at wholesale
prices against cash payment. Optimal use of fertilizers and water should
be demonstrated to the farmers.
Identification of pests, monitoring them through
scouting, observance of economic threshold levels, etc. should be taught
to the farmers through involvement of an Entomologist. The use of the
right pesticide and the quantity and mode of application should be demonstrated
to them. Arrangements are to be made with a pesticide manufacturer for
supply at wholesale price to the project farmers besides providing scouts
for monitoring pest incidence so that the use of chemicals could be optimized.
Harvesting and Ginning :
Picking at the right time and in the right manner,
strictly following the Best Management Practices (BMPs) prescribed by
TMC, must be organized. Avoidance of foreign matter and keeping aside
pest-damaged locules must be particularly emphasized.
As per terms of agreement, farmers are to be
paid immediately after procurement of cotton from each picking. Premium
at the rate of Rs. 25 – Rs. 50 per quintal above the market rate may be
paid to farmers in the scheme.
The farmer’s Association should be required to
ensure that cotton from the project farmers alone is collected and delivered
to the ginnery. No other farmer’s produce should be gathered.
A modernized ginnery well equipped to deliver
contamination – free cotton must be contracted to process the entire cotton
from the scheme. The ginnery should make appropriate use of cleaning machines
and ensure that the cotton is contaminated - free and with low trash content.
Benefits from ICC :
Several benefits are derivable from integrated
farming. For the grower, there would be no dilemma about choice of seed
/ variety. Buying will no more be a problem for him. Loans for buying
inputs will be easily available to him./ Reduced expenditure are higher
yield will fetch him higher profit from cotton cultivation. Marketing
cotton will not be a problem as the CA will purchase the entire stock.
It is also likely that the Government comes out with incentives / concessions
for contract farming in which case the grower’s income would increase
further. One of them is the extension of Mini Mission – II benefits to
Icc schemes also just as they are being now given to State Departments
of Agriculture. Another deserving concession is permission for direct
sale of cotton by the farmers in ICC schemes to the CA without bringing
the cotton to the market. Yet another concession due is the waiver for
market cess or a reduced cess.
The biggest beneficiary in ICC is the textile
industry which will receive adequate supplies of good quality unmixed
and uncontaminated cotton. There would be no more need to import cotton
and thus there could be saving in precious foreign exchange.
ICC will bring several benefits to the CA. It
is important to note that ICC involves no extra investment whatsoever
for the CA. It serves to establish order in an otherwise chaotic cotton
cultivation sector in the country. For a ginner-cum-trader as CA, ICC
will ensure cotton supplies to maximize capacity utilization of the ginnery
and thus bring higher profits. Superior quality of cotton generated in
ICC schemes will facilitate easy marketing of bales, leading to faster
turnover. Premium price will be possible for high quality cotton. Moreover,
patronage of elite mills will itself be a guarantee for prompt payments
and higher net returns.
Milestone in ICC :
It is now over two years since ICC was formally
launched by the Textile Ministry. The Cotton Corporation of India has
taken the lead by assuming the role of CA as well as of a facilitator
helping private agencies undertaking farming. In these ICC schemes, seed,
fertilizer and pesticides suppliers from private and public sectors played
significant roles.
The area covered under ICC schemes has recorded
an impressive increase in the last two years as shown by the following
data :
|
Agency
|
Area Covered (ha)
|
|
2002 – 03
|
2003 - 04
|
|
CCI
|
2996
|
1250
|
|
Others
|
11600
|
32072
|
The prospects for 2004-05 are even brighter.
Reputed mills in northern India as well as many ginning factory owners
in almost all parts of the country seem to be determined to join the ICC
bandwagon.
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