Cut In Cottonseed Varieties Must

The government should follow international methods such as tendering procedure, quality control of raw cotton, staple length standard for the contract and certifying warehousing system in futures trading in cotton, said Chandulal Thakkar, partner, Perfect Cotton Co, in an interview with Devendra. Excerpts:

During your recent visit to Australia, what difference did you find between India and that country in terms of cotton cultivation, yield and farm size?

India is lagging behind Australia in terms of production, yield and water storage facilities. We have to learn from them on achieving high production from limited availability of rains and land.

Australia yields 1,427 kg of cotton per hectre with a rainfall of 14-18 inch against an Indian yield of 269 kg per hectre with a rainfall of 30-35 inch. Also, the Australian government is keen to ensure that their farmers get pure seeds, superior quality fertilisers and the best pesticides.

 

On account of the size of cotton farms, India can not derive the benefits of large scale economy. We have a farm size of 1-8 acre against 50-400 acre in Australia.

Every farm has a pit of 30x30 metre for water storage.

Their ginning factories are well equipped with lummus machine continental and they complete ginning and pressings works in three months. They use only jute bags for packaging and use PUC belt and steel wire hooks.

Crop picking in Australia has been completely mechanised. They also have computers to provide data on sowing and usage of fertilisers.

What steps do you suggest to streamline futures trading in cotton?

The futures trading system should be changed. As suggested by the World Bank, there should not be any monopoly system in the country. There are many interested in futures trading in the country.

The government should follow international methods such as tendering procedure, quality control of raw cotton, staple length standard for the contract, certifying warehousing system and bank finance with low interest rates against the stock for tendering for raw cotton.

Also, the clearing system should be changed. People are interested in futures trading but they are not ready to accept the daily clearing system. There are other commodity speculators showing interest in cotton future trading but they don't favour the trading system.

Also, membership deposit should be reduced. The futures contract should be connected with other centres like Bhatinda, Surendranagar, Hubli, Guntur, Indore and Coimbatore.

This will help cotton traders to participate in trading from any corner of the country which will make futures trading in cotton a success.

The concerned association should provide traders facilities like telephone, fax and telex.

International investors and traders should get transport facilities to reach Cotton Green, the place where futures trading is conducted in Mumbai, in 15 minutes.

Do have any proposals to increase cotton production and yield per hector?

To increase the production of raw cotton, the varieties of seeds must be reduced. As per my opinion, in

all the 10 states, the total 14 varieties of seeds are enough to increase production.

Seed quality control is important to get better yield. The concerned district collector, under a team

of scientists, should check the

seed like in Egypt, Africa and Australia.

Gujarat has recently developed superior quality seeds for the varieties S-6 and S-4.

If these seeds are properly received by farmers, the state's crop will increase by 12 per cent this year. Also, they should distribute pure quality fertilisers in all the cotton producing states.

The government should take measures to keep the quality of urea which is the most important fertiliser used in cotton cultivation.

Also, the government should improve irrigation facilities. Urea packing in colour fabric will prevent polypropylene contamination at the yarn stage.

How do you assess the government's policy vis-_-vis cotton exports and imports?

Regarding the cotton export policy, as per the World Bank's suggestion, the government should stop the export quota system and they should be put under the open general licence (OGL).

Export quality should be announced in advance, i.e. in the beginning of the season with a shipping bill presentation system.

Also, the import of raw cotton should be under OGL without any import duty.

Where do you foresee the domestic cotton market by 2005?

After 2005, as per the General Agreement on Trade and Tariff, the government will have to import five per cent raw cotton, while exports should be around 7-10 per cent of raw cotton productions.

Comment on the government's steps to improve marketing yard and quality?

Under the Cotton Technology Mission (CTM), the government is going to change the raw cotton auction system in the market yard. Farmers will be provided guidelines and they will get extra amount for contamination-free cotton.

The government is planning an education programme for farmers on quality improvement of cotton

and yield. Also, in all marketing yards, as per the Cotton Technology Mission programme, all the 52 marketing yards will be provided concrete cement platforms with full cover sheds.

It also has plans to give financial help to farmers to improve the condition of ginning and pressing factories.