Business Standard

Centre decides to discourage cotton, jute sowing

Related News

Technological missions for both to end in next five-year Plan, though existing allocations to specific states to continue.

To give priority to foodgrain production, the Union ministry of agriculture has decided to discontinue the technological missions for cotton and jute in the 12th five-year plan, to commence from April 1.

Officals said existing allocations for specific states would continue. "Gujarat, Maharastra and Andhra Pradesh heavily depend on cotton and, similarly, the eastern states for jute. Therefore, while there will be no further allocation from the central government directly, states will continue to get their individual allocation, depending on the requirement," said one.

Sources said the move was partly prompted by farmers growing more and more cash crops, much beyond domestic demand. “In cotton, the acreage has gone up sharply year over year in most states, in anticipation of higher prices. However, industrial domestic demand is not much. Now producers eye the export market and there is no reason why the government will fund a crop to meet overseas demand,” was the explanation.

State governments had also been advised to ensure development of genetic varieties in home-grown (desi) cotton. Also, to ensure availability of at least one genetic variety of desi cotton before they allow seed companies to sell. "We have asked states to have it as a mandatory requirement during the seed certification process," said officials. "Most of the output is the Bt (genetically modified) variety —extra long staple. It is good for export and not for the general domestic demand. We do not have enough cotton for denim, babyware, towels, etc, which need the desi (and less costly) variety.”

Also, to address the agitations on falling cotton prices in various states, the central government has advised states to encourage intercropping of foodgrain between two cash crops. This could help the farmers recover some of the losses they face in growing cotton or jute. Beside helping to meet foodgrain demand, to grow manifold in the wake of passage of the Food Security Bill.

Cotton prices, which were soaring as 2011 began, have been falling. The benchmark Sankar-6 variety rose to a high of Rs 67,000 a candy (356 kg) in Marchl it is now quoted at Rs 34,500 a candy. The estimates the sown area during the 2011-12 season was up at 12.2 million hectares compared with 11.1 mha in the previous one. Output for the year has been pegged at 35.6 million bales (a bale is 170 kg), compared with 32.5 million last season, the CAB said.

Read more on:   
|
|
|
|

Read More

FMC to ban two more members for price rigging in guar

Finding them guilty over irregularities in the trading of guar seed and guar gum largely on the National Commodity & Derivatives Exchange ...

Quick Links

 

Market News

Double digit earnings to cheer markets in FY16

Analysts expect earnings surprises from consumer discretionary, financial and industrial sectors

Markets in evolution offer tremendous opportunities: Chitra Ramakrishna

The CEO of National Stock Exchange expects to see more retail savings enter the stock market

Domestic market not showing revival, ceramic units look global

Ceramic industries face reduction in business because of slowdown in real estate sector

Sebi slaps over Rs 21 cr fine on Gujarat Arth promoters, PACs

Sebi has slapped a hefty penalty of over Rs 21 crore on Gujarat Arth Ltd's promoters and persons acting in concert (PACs) for fraudulent ...

Indiabulls Securities pays Rs 1 crore to Sebi to settle allegations

The settlement charges were invoked after the irregularities were found in the company's broking operations

Back to Top