RAW MATERIAL
However world production will decline, leading the cotton surplus countries to export their cotton:- World Cotton Supply and distribution Million tones Million bales 2004-05 2005-06 2006-07 2004-05 2005-06 2006-07 Production26.325.2 25.4120.8 116117 Consumption23.9424.4 25.1109.5112115 Exports 7.758.98.7 35.64140 Ending Stock10.48 11.3 11.648.152 53 Outlook index65 62* 52.265*62*52.2 Fin.Exp. 6 Feb,2006 Bt cotton in India India accounts for approximately 25 per cent of the world’s total cotton area and about 12 per cent of the global cotton production. Cotton yields are low in India; the average yield is around 350 kg per hectare versus the world average of 700 kg per hectare. The primary reason for the low productivity in the country is crop damage caused by insects and pests, notably Helicoverpa armigera, commonly referred to as the American bollworm. Nearly Rs 12 billion worth of pesticides are used to control just the bollworm. Low yields are also the result of poor farming practices, since Indian farmers lack appropriate knowledge in this regard. India adopted Bt cotton in 2002. In 2003-04, the country recorded the highest increase of 125 percent in area under Bt cotton cultivation vis-à-vis other countries like Australia (100 per cent) and China (32 per cent) etc. Introduction of Bt cotton in India in March 2002 The Maharastra Hybrid Seed Company (Mahyco), in collaboration with Monsanto, introduced Bt cotton technology in India. India was one of the very few countries that decided to take up Bt cotton cultivation on an experimental basis; the Genetic Engineering Approval Committee (GEAC), approved the cultivation of three Bt cotton hybrids (MECH 162 Bt, MECH 184 Bt, and MECH 12 Bt), subject to certain preconditions being met. These hybrids produce medium long to long-staple fibre and the seed companies claim that they have high yields. The seeds were distributed in Maharastra, Madhya Pradesh, Karnataka, Andhra Pradesh, Gujarat, and Tamilnadu in the kharif 2002 planting season. Following is extent of cultivation of BT Cotton is significant in MP considering its literacy and creditworthiness of farmers. Indeed Bt cotton cultivation here is way ahead of TN and Karnataka which are otherwise treated as advanced states:- Cultivation of BT Cotton in States In acres 2002 200320042005 TN92519000 2964060000 Karna.5401 75008476480000 MP367633000212798360000 Gujarat22577 103000311157380000 AP940413500 176000600000 Maha.30699 54000 399000 1475000 Others 0 0 0 150000 Total74684 232003 215363 3107005 Source: Krishak Dunia 9 to 15 Jan. 2006 As of now, India is the 2nd largest global cotton producer in which Bt is playing major role Indian cotton production in lakh tones 2005-06 2006-07 2007-08 Production 24.66 25.00 25.70 Consumption 24.79 25.60 26.20 Export9.74 9.20 9.20 Closing Stocks 11.91 11.6 11.5 COtlook A India 56.15 Price US Cents a pound Hindu 4.10.06 quoting ICAC In year 2006-07 (Curr. year), India may export 50 lakh bales compared with 47 lakh bales in 2005-06. CCI has already been instructed to purchase cotton at minimum support price. If cotton rules above support price level, CCI will buy at the market rates. Country is producing 244 lakh bales compared with 136 lakh bales in 2002-03. This year with increase of 11% the production has gone up to 270 lakh bales. (Nai Dunia15-11-06) The International Cotton Advisory Committee (ICAC) forecasts substantially higher cotton crop for the current year. Like 2004-05 the second half of 2005-06 promises to be good for the Indian spinners, with cotton prices softening, following a bumper crop both in the domestic and global markets. If yarn prices remain more or less firm, the margins of spinning companies are expected to improve in 2005-06. Thus, the raw material supply is more than adequate.
India accounts for approximately 25 per cent of the world’s total cotton area and about 12 per cent of the global cotton production. Cotton yields are low in India; the average yield is around 350 kg per hectare versus the world average of 700 kg per hectare. The primary reason for the low productivity in the country is crop damage caused by insects and pests, notably Helicoverpa armigera, commonly referred to as the American bollworm. Nearly Rs 12 billion worth of pesticides are used to control just the bollworm. Low yields are also the result of poor farming practices, since Indian farmers lack appropriate knowledge in this regard.
India adopted Bt cotton in 2002. In 2003-04, the country recorded the highest increase of 125 percent in area under Bt cotton cultivation vis-à-vis other countries like Australia (100 per cent) and China (32 per cent) etc.
Introduction of Bt cotton in India in March 2002
The Maharastra Hybrid Seed Company (Mahyco), in collaboration with Monsanto, introduced Bt cotton technology in India. India was one of the very few countries that decided to take up Bt cotton cultivation on an experimental basis; the Genetic Engineering Approval Committee (GEAC), approved the cultivation of three Bt cotton hybrids (MECH 162 Bt, MECH 184 Bt, and MECH 12 Bt), subject to certain preconditions being met. These hybrids produce medium long to long-staple fibre and the seed companies claim that they have high yields. The seeds were distributed in Maharastra, Madhya Pradesh, Karnataka, Andhra Pradesh, Gujarat, and Tamilnadu in the kharif 2002 planting season.
Following is extent of cultivation of BT Cotton is significant in MP considering its literacy and creditworthiness of farmers. Indeed Bt cotton cultivation here is way ahead of TN and Karnataka which are otherwise treated as advanced states:-
As of now, India is the 2nd largest global cotton producer in which Bt is playing major role
In year 2006-07 (Curr. year), India may export 50 lakh bales compared with 47 lakh bales in 2005-06. CCI has already been instructed to purchase cotton at minimum support price. If cotton rules above support price level, CCI will buy at the market rates. Country is producing 244 lakh bales compared with 136 lakh bales in 2002-03. This year with increase of 11% the production has gone up to 270 lakh bales. (Nai Dunia15-11-06) The International Cotton Advisory Committee (ICAC) forecasts substantially higher cotton crop for the current year. Like 2004-05 the second half of 2005-06 promises to be good for the Indian spinners, with cotton prices softening, following a bumper crop both in the domestic and global markets. If yarn prices remain more or less firm, the margins of spinning companies are expected to improve in 2005-06. Thus, the raw material supply is more than adequate.
The International Cotton Advisory Committee (ICAC) forecasts substantially higher cotton crop for the current year. Like 2004-05 the second half of 2005-06 promises to be good for the Indian spinners, with cotton prices softening, following a bumper crop both in the domestic and global markets. If yarn prices remain more or less firm, the margins of spinning companies are expected to improve in 2005-06. Thus, the raw material supply is more than adequate.
Thus, the raw material supply is more than adequate.