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Cotton Scenario in India

Author : RAJASHREE KHATUA

AGRO CLIMATE RESEARCH CENTRE DIRECTORATE OF CROP MANAGEMENT TAMIL NADU AGRICULTURAL UNIVERSITY COIMBATORE – 641 003

India is one of the largest producer of cotton in the world accounting for about 26% of the world cotton production. The yield per kg hectare which is presently 487 kg/ha is still lower against the world average yield of about 768 Kg/ha in 2020-21 (The Cotton Corporation in India Ltd Report).

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Cotton production in India during 2018-19 is expected around 361 lakh bales of (170 kg) from 122.38 lakh hectares with a productivity of 501 kg lint/ha (CAB as on 22:11:2018). During the current year 2018-19, Maharashtra, Gujarat and Telangana were the major cotton growing states covering around 70.45% (86.22 lakh hectare) in area under cotton cultivation and 62.60% (226 lakh bales) of cotton production in India. An area of around 14.45 lakh ha (Punjab‐2.84, Haryana‐6.65 & Rajasthan4.96) was sown under cotton during 2018-19 in North zone. Even with 6.41% decrease in area under cotton, the cotton production increased from 56 to 60.50 lakh bales with enhancement of 8% as compared to last year in North Zone. Significant production change in North Zone attributed to remarkable productivity increase in Haryana from 571 to 690 kg/ha; and Rajasthan from 640 to 754 kg/ha. In Central Zone, the productivity level decreased from 479 to 445 kg/ha, mainly attributed to productivity decline in Gujarat from 674 to 577 kg/ha as a result of which 12 lakh bales reduction in Gujarat from 104 lakh bales last year to 92 lakh bales current year. There was a marginal decrease in area and production observed in South zone.

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India’s 2018-19 production is estimated at 27 million bales, down 6.9 percent from the preceding year on lower area and yield. As a result, India’s crop dropped below China’s for the first time in five years. Harvested area is estimated at 12.3 million hectares, marginally down 1.6 percent from 2017/18 as below-average monsoon rainfall
and pink bollworm infestation truncated harvesting. India’s 2018/19 yield is estimated at 480 kg/hectare, down 5.3 percent from the previous season with deficient rainfall and pest infestation in the major cotton producing areas of Gujarat and Maharashtra
(Agricultural Outlook Forum 2019).

USDA Foreign Agricultural Service (FAS) Mumbai, forecasts marketing year (MY) 2018-19 cotton acreage at 12.35 million hectares and production at 28.5 million 480 pound (lb) bales. Indian cotton exports will remain slow. However, cotton yarn and textile exports will remain strong as Indian currency supports higher export prospectus. Mill consumption will remain flat as the new minimum support price for cotton drives up the input costs (Indian cotton Scenario – 2018-19 report, cotton statistics in India 2019).

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Current organic cotton statues in India

Organic cotton cultivation is a systematic approach for maintaining biological diversity and bringing sustainable yield and income. The area under organic cotton farming is declining due to decrease in premium prices offered to organically grown cotton. The government of India should take measures and formulate policies to promote organic cotton cultivation through guidelines in traceability and transparency for cultivation and marketing of organic cotton, and offering premium prices of organic cotton keeping in view of the welfare of organic cotton growers and sustainable environment in large (Mageshwaran et al., 2019).

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Time Series Data

The necessary time series data on area, production and yield were compiled from various official published sources for the period from 1980-81 to 2015-16. The trend of long staple cotton was examined with the compound growth rates and instability indices in Gujarat. The results revealed that there was an increase in average of area, production and yield of long staple cotton in all the three periods. In terms of percentage change, production noticed the highest per cent change during Post-Liberalization Period over Pre-Liberalization Period (538.23 %). The highest instability (43.97%) and the highest
significant growth rate (7.50 % / annum) were observed in production of long staple cotton during Overall Period. The results revealed that the area and yield contributed jointly for the significant increase in cotton production during Overall Period. The results of Hazell’s decomposition analysis showed that yield variance was the main contributor to the production variance in both Post-Liberalization Period (50.9%) and Pre-Liberalization Period
(83.34 %) in the state (Mohammad et al., 2018)

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Niranjan et al., (2017) Concluded from the study that. There is a significant improvement in the area, production and productivity of cotton in India, over the years. The increased production is greatly due to the improvement in the productivity of the crop and also due to a considerable growth in the cultivated area. Among the states, Gujarat, Maharashtra and Andhra Pradesh (including Telangana) have a greater share in area and production of cotton in India. However, in case of productivity, Gujarat holds the top spot. Domestic consumption of cotton in India is about 67 per cent, but export is only 21 per cent of the total cotton available, in the last 10 years. It should be noted that import has surpassed export in 2014-15. The export and import data revealed that, the annual growth in export is very much lesser than that in imports. Besides, the price per bale of cotton which is exported is less stable than that of the imported.

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The state wise production scenario of cotton over the years as well as the export composition and competitiveness analyses by (Samuel and Rejani, 2015). The study revealed that the % change of cotton area in the period II (1981 to1994) over the period I (1995 to 2007) was highest for the state Andhra Pradesh (71.96%). Moreover, the country as a whole had an increase of 17.73% with a production increase of about 84.78 % and productivity increase of about 55.64%. The growth rate of the cotton area was negative while the growth of cotton production in the country was 4.47% and 3.91% increase in productivity during the period II. The study also showed that India has been exporting all types of cotton from 1980 onwards and the long and extra long staple cotton has registered highest share of exports with more than 40%. The export competitiveness revealed that India’s comparative advantage in cotton exports has been increasing over the years. Moreover, the import price of cotton is higher than the export price in almost all the years.

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For study to analysis the trend and growth of area, production and Productivity of Non-Food grain/commercial crops in India and to analyze the production and productivity status of Non-Food grains/commercial crops in India. For the study, the secondary data have been used. The required secondary data have been obtained from the secondary sources such as RBI Data Base. Such collected data have been analysed with Compound growth rates, Means, Standard Deviations and Coefficient of Deviations. It is found that the compound growth rate of productivity of non-food grains showing a fluctuating trend. They concluded that the average areas under the cultivation of major commercial crops like oilseed, coffee, cotton, sugarcane and tea has increased during the study pried (M. Kumar et al.,2015).

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For study to analyses the state wise production scenario of cotton over the years. For the study, the secondary data have been used. The required secondary data have been collected from Centre for Monitoring Indian Economy Pvt. Ltd. Such collected data have been analysed with annual compound growth rate. It is found that the cotton cultivated area was the highest in Maharashtra 35.50 per cent followed by Gujarat 16.32 per cent, Karnataka 9.20 per cent, Andhra Pradesh 8.17 per cent, Punjab 8.51 per cent, Madhya Pradesh 7.21 per cent, Haryana 5.91 per cent, Rajasthan 5.45 per cent and Tamil Nadu per cent 3.16 per cent. They concluded that the Cotton is one of the major rain fed crop in the country, making India the second largest producer and a major exporter in the world (Samuel and Rejani, 2015).

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The growth rates in area, production and productivity of major crops in the state of Andhra Pradesh. For this study, secondary data have been used. The required secondary data have been collected from Season and Crop Reports and Handbook of Statistics. Collected data have been analysed with growth rates were estimated using exponential growth function. It is found that the overall growth rates of area, production and productivity of cotton has positive growth rates (Sheikh Mohd Mouzam et al., 2015).

The growth and instability in cotton area, production and productivity during the period 1970-71 to 2013-14. For the study, secondary data have been used. The required secondary have been collected from Cotton Advisory Board, Central Institute for Cotton Research, and various bulletins of the International Cotton Advisory Committee. Collected data have been analyzed with Annual Compound Growth Rate, Coefficient of Variation and Fitting Exponential Function. It is found that the cotton area registered a
negative insignificant annual compound growth rate at -0.0433 per cent per annum in world while India fetched a positive insignificant growth at 0.3631 per cent per annum (Sankar et al., 2015).

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A study was made to analysed the performance of the cotton sub-sector in Malawi, in terms of output, area and productivity, since independence. For this study, the secondary data have been used. The required secondary data have been collected from United States Department of Agriculture and the Ministry of agriculture of the Malawi Government. Such collected data have been analysed with Exponential growth rate in area, production and productivity and t-test for testing statistical significance of change in area, output and productivity. It is found that statistically insignificant growth in area, output and yield before and after the implementation of SAPs. They suggested that the cotton subsector in Malawi has been quite stable (Kenamu et al., 2014).

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Study the trends in area, production and productivity of cotton in India. The average area, production and productivity of cotton in India were 94.05 lakh hectares, 222.375 lakh bales and 391.6 kg per hectare, respectively. Further, the results revealed that the area, production and productivity were growing at the rate of 1.70, 7.53 and 5.72 per cent per annum, respectively. Annual growth rate of area was less than that of the productivity. It was clear that positive annual growth in cotton production was due to increase in productivity rather than increase in area. Growth rates of productivity in the selected States were also significant in all the cases at different levels of probability which may be due to the fact that farmers in the selected States have adopted intensive cotton cultivation practices including adoption of high yielding varieties and hybrids. This paper clearly shows that the area, production and productivity of cotton in India were increasing which were found to be statistically significant (Shreedevi and Kulkarni, 2015). More than 50 per cent of the cotton area is covered by cotton hybrids and the hybrids contribute about 60 per cent to national production (Singh and Anshu, 2008).

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