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| Short-staple cotton output likely to decline, denim makers may import |
| Rutam Vora / Ahmedabad Feb 09, 2012, 00:14 IST |
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At a time when cotton output estimates in India have been lowered to 34.5 million bales (170 kg each), production of the short-staple variety in most parts is likely to fall on unfavourable weather during the sowing season.
India, the second-largest grower after China, may have to depend on imports of the short-staple variety this year, as production in key growing areas, including Gujarat, Maharashtra and Andhra Pradesh, may witness a steep fall. Short-staple cotton has length of less than one inch.
“Gujarat, the largest producer, may witness a fall of 50 per cent in the short-staple variety to 400,000-500,000 bales. The loss is mainly due to an extended monsoon during sowing and climatic fluctuations during early winter days,” said N M Sharma, managing director, Gujarat State Cooperative Cotton Federation (Gujcot).
A higher crop of genetically modified (Bt) cotton is also responsible for lower output of the short-staple variety, as the Bt crop is of similar length and medium staple.
The Cotton Advis-ory Board (CAB) had estimated production to be 34.5 million bales for the 2011-2012 season (October-September). Gujarat’s production is estimated at 11.4 million bales, of which production of the Bt variety was pegged at 10.8 million bales, while the rest would be short-staple variety of V-797 cotton (better known as Kalyan in Gujarat). In Maharashtra, the short-staple variety is known as Y-1, while in south India the variety is known as H-420 and Jaidhar, which has fibre length less than an inch.
Due to its coarse fibre, short-staple cotton is mainly used for thick textile materials, including denim.
“The share of short-staple cotton to the total production is declining. Since there are large numbers of denim capacities in the country, the demand for short-staple variety is huge. This year, the production scenario looks grim across the country and there could be increased imports of such variety to meet millers’ requirements,” said D K Nair, secretary, Confederation of Indian Textile Industry.
According to industry estimates, import in the current season would be 300,000 to 400,000 bales. “Already around 300,000 bales of short-staple cotton have been contracted for imports from Pakistan. We may have to import more if domestic production falls,” said a leading trader and exporter from Ahmedabad.
Increasing dependence on the imported short-staple variety is feared to put additional cost pressure on denim making companies, including Arvind Ltd, Aarvee Denims & Exports Ltd, KG Denim and Alok Industries Ltd.
“Imports will be costlier for denim makers as there will be an additional burden of freight and insurance cost for the companies,” said Nair, adding that denim makers are increasingly depending on the imported short-staple variety.
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