Cotton Outlook

Special Feature
December 2008

at the Centre of the Cotton World

Contents
India A central role in todays cotton world By Ray Butler, Editor Cotton Outlook Indian Cotton Production: Maintaining an Exportable Surplus By Mr. J.N. Singh, Textile Commissioner Indias Cotton Economy By Mr. P.D. Patodia, Chairman, Cotton Association of India Indian Cotton Fibre: Perspective 2012 By Mr. S. P. Oswal, CMD, Vardhman Group Future of the Textile Sector in India By Mr. V.S. Velayutham, Chiarman, Texprocil, Managing Director, Sri Gomathi Mills ITMF Spinners Committee Visits India Dynamics and New Developments of the Ginning Industry in Saurashtra By Mr. Anand A, Popat, Secretary, Saurashtra Ginners Association, Managing Director, Jalaram Cotton and Proteins Pvt. Ltd. Prospects of Organic Cotton in India By Mr. Dilip Jiwrajka, Managing Director, Alok Industries CIRCOT Calibration Cotton: A Standard Reference Material for Use in HVI Testing Dr. S. Sreenivasan & Dr. R.P. Nachane, Central Institute for Research on Cotton Technology Improving cotton quality to meet textile mill requirements By Shirish R.Shah, Director, Cotton Association of India Director, Purman Cotton Co. Pvt. Ltd. Partner, Bhaidas Cursondas & Co. 4-6 8 - 10 12 - 15 16 - 18 20 - 21 22 - 24 26 - 27

28 - 32 34 - 36 37 - 38

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Page design and layout by Pam Jones, Cotlook Limited. Published by : Cotlook Limited, Outlook House, 458 New Chester Road, Rock Ferry, Birkenhead, Merseyside, CH42 2AE, U.K. Tel : 44 (151) 644 6400 Fax : 44 (151) 644 8550 E-Mail : editor@cotlook.com World Wide Web : www.cotlook.com The publisher accepts no responsibility for views expressed by contributors. No article may be reproduced without the prior permission of the Editor.

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India A central role in todays cotton world

By Ray Butler, Editor Cotton Outlook

Second largest producer, second largest consumer, second largest exporter . On May 27, 1999, Mr. Suresh Kotak, the (then) ebullient and energetic President of the East India Cotton Association, submitted to the Textile Ministry a detailed note on the need for liberalization in cotton export policy.. Finally, wisdom dawned on the authorities. At long last, on June 2, 2001 the Union Minister for Textiles. announced at the Texprocil Awards Function in Mumbai that all restrictions on cotton exports were being removed 1. The liberalisation of export trade in 2001, combined with a virtual revolution in cotton cultivation practices, opened the door for a subsequent sea change in Indias perceived role in international cotton trade. Progress had been evident before then, with more land placed under irrigation and the use of high-yielding hybrid seeds expanded. However, Indias average yield languished at more than 40 percent below the world average and domestic consumption still outstripped production by quite a margin. Export liberalisation arguably provided a stimulus, at long last, to efforts to bring Indias cotton cultivation more closely into line with the best international practices. The fruits of the Technology Mission on Cotton, launched in 2000, were gradually to become apparent. Focused on research, technology transfer and improved market

infrastructure, as well as modernisation of ginning and pressing factories, the Missions primary purpose has been to raise farmers incomes. Coincidentally, the Technology Mission was followed by another revolution in cotton production the spread of genetic modification techniques from the United States to the rest of the world. In 2002/2003 (the first season of the commercial use of GM in India) less than 30,000 hectares were put under cultivation2. By comparison, 70 percent of the US crop by then consisted of transgenic strains. Only a short time later, in 2006/2007, an estimated one-third of Indias plantings were of the modified variety and the current season could have witnessed the proportion increase to more than 75 percent. The Technology Mission and use of GM seed strains has partially closed the yield gap against the world average and this season could see it narrow to as little as 20 percent. Furthermore, there seems little impediment at present to the gap being narrowed further in the seasons ahead, provided Monsoon rains continue to be timely and abundant. India has already leapfrogged the United States, moving from third to second place in the league table of cotton producing countries, its output having risen by almost one-and-a-half times in the space of five seasons. US production, by contrast, is expected this season to be more than 20 percent below the typical level recorded in the early years of the century.

From the position of being in deficit each year in terms of cotton supply, India has, from 2003/2004 onwards, seen a rapid growth in exportable surpluses, to become the second largest after the US. This has provided the leeway for ginners, merchants and international traders to engage in large-scale business and firmly establish Indian cotton, Shankar-6 in particular, as both competitive and desirable in the world market. One might contend that Shankar-6 has emerged as valuable brand name, that should be both protected and nurtured The rise in output has brought new tensions and challenges for both the government and the private sector. Protecting farmers incomes is a vital component of state policy in an economy which, through rapidly transforming, is still largely agriculture based. Rising costs have warranted a review of the governments price support function, leading to swingeing increases this season in the levels at which the Cotton Corporation of India is charged with intervening in the market by taking up seed cotton supplies. A considerable cost to the exchequer would, in consequence, seem to be in prospect, given the current, depressed state of both domestic and world markets. In search of balance, the government has sought to be better informed about the potential scale of exports, by requiring registration of contracts, and has reduced to zero the duty levied on cotton imports. The private cotton trader, when in a buying mood, has continued to pay the going market rate (often below the support level) in the various upcountry centres but is doubtless fearful of the emergence of further government controls in future, such as the potential introduction of an outright export ban should the available supply appear to dwindle, as evidenced toward the end of last season. As this year, the textile industry would doubtless lobby intensely for such a policy decision, if exports should once again reach a level that threatens the availability of domestic supply. A rather more sanguine view might be that such a fear is ill placed, at least for the time being. Indias textile sector is not alone in experiencing tough business prospects as a result of the global economic slowdown. Cotton consumption, which had increased year-on-year during the five seasons ending in 2007/2008, is thought likely on current evidence to slip in 2008/2009. According to Cotlooks data, the gap between higher production and lower consumption could therefore reach almost as much as 1,500,000 tonnes (8,000,000/9,000,000 local bales) which is more than last season - leaving plenty of scope, one would suggest, for a sustained, strong presence in export markets.

Looking further ahead, one might anticipate that area under cotton cultivation will remain relatively stable, at around nine million hectares, given the higher government support prices and also owing to strong cottonseed prices, which serve to enhance farmers returns. Further expansion of irrigation and more improvement in farming practices, together with continued advances in seed development and selection, would seem likely to push yields still closer to the world average. Modernisation of ginning and pressing, which has thus far focused on Gujarat, is expected to spread to other regions. Further increases in output to as much as 40,000,000 bales according to many observers - would thus seem on the cards. Like virtually all textile industries today, the Indian manufacturer is facing considerable adversities, such as escalating costs of power and other inputs, and severe power outages in some states, especially Tamil Nadu, a volatile exchange rate and a collapse in demand from major western markets in the current economic recession. The industry is shielded to some extent in that India enjoys a rising wealth level in urban centres, resulting in a vibrant domestic market. Nevertheless, fewer orders from abroad indicate that the coming months are likely to be painful for many industry participants, particularly those with new capacity still coming on stream and those with high price raw cotton purchasing contracts in hand. Despite increased output of man made fibres (up 8.5 percent in 2007/2008), India remains very much a cotton consuming country, with the fibre accounting for perhaps slightly more than threequarters of the total raw material. The textile industry provides five percent of GDP and 15 percent of the countrys total export earnings, and has ambitious targets for increasing these proportions, so its priority in government policy decisions seems assured. The Indian cotton and textile sectors now occupy a central place in world markets. Even should domestic cotton consumption soon resume an upward trend, as surely it must, under present government policy mills will enjoy access to world market prices, and therefore surely retain a competitive edge. Farmers have the reassurance of being partially sheltered from depressed prices. Ginners and cotton traders will doubtless wish to continue taking advantage of the increased business opportunities that have been created in recent years in both the domestic and export markets. India, it would seem, is strongly placed to exhibit leadership in the worlds cotton and textile industries for the foreseeable future.

1. 2. 3.

Extract from Cotton Exchange Marches Ahead by Madhoo and Rama Pavaskar published by the East Indian Cotton Association in 2002. Cotlooks Annual GM Survey, Cotton Outlook Special Edition accompanying the ICACs 63rd Plenary Meeting 2004, in Mumbai. Mr. Vinay Kotak Indias Supply and Demand Prospects, Annual Dinner of the International Cotton Association, Liverpool, October 2008.

Indian Cotton Production: Maintaining an Exportable Surplus

By Mr. J.N. Singh, Textile Commissioner

Introduction
India has been a major player in international textile and apparel production for several decades in Indias post independence period. Traditionally, while most countries have depended increasingly on manmade fibres for their fabric production, India has been steadfastly depending on cotton. Indeed, cotton has been the strength and the expertise of Indian mills, which has also been reflected, not unsurprisingly, in the social history of India in the 1950s and 1960s. India had a global reputation not only in the fabric produced by the mills and the powerloom sector but also in hand-woven fabrics like patola (woven silk, used in sarees), jamdani (a woven, fine cotton muslin), mulmul (a fine, soft muslin, particularly the muslin woven in Bengal). One of the major reasons for the preponderance of cotton over all other fibres in India is the fact that cotton is natural to Indias ethos, suitable to its climatic needs and is replete in its usage in the past. An interesting fact is that India is the only country where all four major species of cotton (G.arboreum, G. herbaceum, G. hirsutum, G. barbadense) are grown. Yet it is somewhat surprising that for most of the years (at least in the post independence period) for which data is readily available, India has been a net importer of cotton! For a country with a history of cotton production and use

throughout history, India was not self-reliant in cotton till just a few years back. However, things have changed substantially and India is now a net exporter of cotton. The country has become the worlds second largest producer, second largest consumer and the second largest exporter. The issue is whether it will be able to maintain an exportable surplus over a sustained period of time.

Indias Cotton Production

Indias cotton production has systematically increased over the last several years, from a low level of 158 lakh bales in 1997-98 to an estimated 322 lakh bales in the year 2008-09, more than double in a decade. The increase especially came from the year 2003-04 with the introduction of Bt cotton in greater areas of India and

several measures taken under the freshly launched Technology Mission on Cotton. (For details please look into the various web-sites of Ministry of Textiles, Ministry of Agriculture and Textile Commissioner, India.). The graph shown on page 8 illustrates the point. We can observe that while there was almost stagnation in production prior to 2003-04, there has been almost a continuous increase year-on-year after that. What is more significant that Indian planners expect production to increase up to 400 lakh bales by the year 2011-12, the final year of 11th Plan period. (Please see Report of the Working Group on Textile and Jute for the 11th Plan Period). The optimism is based on the fact that Indias productivity is still low by global standards and there is sufficient margin for improvement. The Indian state of Maharashtra, which has practically onethird of the total area under cotton cultivation, has a productivity level that is just half of the average of other states. If Maharashtra is able to reach the all-India average, which in itself is not very high, and even if there is no major improvement in cotton farming practices in other states, India would still reach the figure of 400 lakh bales. It indeed now appears from the activity in Maharashtra state that things are changing rapidly for the better. The policy of Monopoly Procurement has been finally laid to rest and the entrepreneurship among cotton farmers, traders, ginners and mill people has revived. At the same time, almost all other states are also making full efforts under their respective agricultural departments to further improve productivity.

figure of 177 lakh bales. By 2007-8 it had reached 241 lakh bales. The impetus for higher consumption was the incentive given by TUFS (Technology Upgradation Fund Scheme) which led to high capacity creation and modernisation in the Indian textile sector. The biggest beneficiary was the spinning sector, which accounted for over 35% of the total investments under the scheme. TUFS, which incentivised one of the largest and most unprecedented capacity creation in the Indian textile history so far, reached its peak in the year 2006-07 when the total investment sanctioned under it was of the order of Rs 66,233 crores (1 crore = 10,000,000). (See details at www.txcindia.com).

Indias Cotton Exports

As mentioned earlier, India had been a net importer in most years, as the following graph shows.

Indias Domestic Cotton Consumption

The domestic consumption of cotton by the Indian domestic mills has also increased over a period of time. Here too it is the last few years that has seen a major fillip as can be seen by the graph below. It is interesting to note that consumption started increasing significantly from the year 2004-5, when it reached 195 lakh bales compared with the previous years

However, the increase of production at an unprecedented rate, outstripping the growth in domestic consumption has meant that for the last three years India has been exporting substantial quantities to the international market. Indian cotton has been well received, owing not least to its improved quality. The quality improvement under Technology Mission on Cotton Submissions 3 and 4 have played a major role in obtaining better ginning and pressing practices and marketing yard improvements.

Future of Indias Cotton Exports

Cotton production can safely reach up to the level of 400 lakh bales in some years. Meanwhile, domestic consumption, is not expected to reach such a level for quite some time to come. So one can presume that Indias exportable surplus is sustainable in the foreseeable future. However, the situation has become somewhat slightly difficult to predict with thefullest conviction due to two factors one of international origin and the second of domestic origin.

On the international front the massive crisis in the financial sector originating in the US has had an impact on the commodity sector globally, and though cotton was not that badly hit initially as many other commodities, slowly the contagion seems to have caught up with it. In the New York cotton futures exchange on 12th November 2008, the psychological barrier of 40 cents per lb for nearby deliveries was breached and cotton reached a 51/2 year low. One of the reasons why Indian farmers had chosen cotton over other competing crops in recent years was its highly remunerative prices and the fact that it had a good global market. With those high prices apparently being a thing of past now, some rethinking regarding cotton farming will definitely start. Of course, it will also depend on the behaviour of other agricultural commodities.

On the domestic front, the factor affecting cotton farming, though in somewhat the opposite direction to the previous point, is the declaration of high Minimum Support Price for cotton for the 2008-09 season. In case of S-6, the most popular variety of Indian long staple cotton, the MSP increase has been almost 39%. Had commodity prices in general continued to rule high, perhaps the prevailing cotton prices would have been above the MSP levels, but the steep decline in market prices has meant that the government of India will have to intervene massively to buy the cotton from the farmers. The surplus cotton over and above the domestic consumption will certainly be exported, but the timing and price remains in question, as it is no longer a free market operation. At the same time the decline in international demand owing to the deceleration of the textile and apparel sectors is causing further rumblings. Overall, the situation seems to be highly complex and confusing and one cannot safely predict the shape of things to come.

Conclusion
By normal demand-supply scenario, India should continue to have enough exportable cotton in the years to come, and though there are severe uncertainties in the present cotton year, sanity would hopefully soon prevail in the market. Indian cottons future cannot remain isolated from the general financial and economic trends all over the globe. On a positive note, since all other agricultural commodities also have similar uncertainties, cotton will continue to do well relatively, as it has been doing in India in recent years.

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Indias Cotton Economy

By Mr. P.D. Patodia, Chairman, Cotton Association of India

Indias cotton economy has been on a growth path since independence in 1947. Cotton grew steadily in stature and got a boost through the nineteen seventies mainly due to the development of new, high yielding hybrid varieties. However, the new millennium has witnessed a much faster pace of development on all criteria viz. production, consumption, yield and exports. The overall growth during the current decade can be seen from the accompanying table. In cotton production, the 200 lakh bales mark (one lakh equals 100,000) was crossed from 2004-05 and in productivity, the 400 kg mark was breached in 2004-05 and the 500 kg mark in 2006-07. Cotton has since then made tremendous strides, both qualitatively and quantitatively. India has emerged as the second largest producer, consumer and exporter of cotton.

Area and Yield

Area under cotton expanded by about 10 percent from 8.73 million hectares in 2001-02 to an estimated 9.20 million hectares in 200809, which constitutes 25 percent of the world cotton area. Yield has also grown from around 300 kg per hectare in 2001-02 to estimated 593 kg per hectare in 2008-09, which represents an increase of over 98 percent.

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The growth rate of average yield in India has far outpaced that of the world average. For instance, during the eight years of the current decade, from 2000-01 to 2008-09, the world average yield grew by only 21%, from 647 kg to a projected 782 kg, whereas Indias average posted growth of 93%, from 308 kg to 593 kg, which reflects the acceleration set in train in recent years after the launching of the Technology Mission on Cotton and the advent of bollworm resistant Bt cottons. While the gap between Indias and the world averages had been as high as 339 kg per hectares in 2001-02, it had diminished to only 222 kg in 2007-08. With further intensification of efforts and the expected breakthrough in the development of new transgenic cottons, there is every hope that Indian yields can catch up with the world average in the not too distant future. Yields in some leading cotton growing States in India seem to strengthen this expectation. Data relating to the four leading States in 2008-09 are given in the accompanying table. The average yield of the above four leading States, which account for nearly 60% of the total Indian crop, is only 75 kg lower than the world average. With one more push, perhaps it may not be difficult for the average yield at least in these four States to match the world average by the end of the current decade. In the case of Gujarat, in particular, the projected average yield in 2008-09 will almost touch the world average.

Imports & Exports

India exported 8.5 million bales in 2007-08, setting an all-time record. This compares with exports of merely 0.10 million bales in 2003-04. According to the preliminary

estimate of the Cotton Advisory Board, exports could be somewhat lower at 7.5 million bales during the current, 2008-09 season. Imports of cotton have meanwhile decreased from 2.47 million bales in 2003-04 to projected 0.5 million bales in 2008-09.

Key factors contributing to increases in productivity

I Splendid performance of Technology Mission of Cotton over the last five years in bringing about sea change in the infrastructural development Phenomenal spread of hybrid and Bt. cottons Greater application of IPM technology and effective check on pest and disease infestation Adoption of scientific agronomic practices by farmers Increase in area under irrigated cotton Augmented development of good quality seeds by private sector Sustained development efforts undertaken by TMC and other NGOs including CAI-COTAAP, CITI-CDRA, CCI, SIMA-CDRA.

I I

I I

Production & Consumption

From 15.8 million bales in 2001-02, production will almost be doubled, to 32.2 million bales, in 2008-09. Consumption has meanwhile grown from 17.0 million bales in 2001-02 to an estimated 24.1 million bales in 2008-09, representing growth over the period of about 42 percent.

The Cotton Development and Research Association (CDRA) of the Confederation of Indian Textile Industry (CITI), in collaboration with the Rajasthan Government and a private company, have launched a project aimed at improving the production and productivity of cotton in lower Rajasthan during the 2008-09 season. Most tribal farmers in this district are said to have smallholdings and grow old, low yielding varieties of cotton; since modern p r o d u c t i o n technology has not penetrated here, yields are very low.

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The project aims at introducing new high yielding types like Bt. cotton and, with adoption of improved technology, yields and quality are expected to go up quite significantly. The technical backup for the project will be provided by scientists from the Agricultural University and by a private company collaborating with the project.

Emerging Issues & Solutions:

I There has been a shortage in production of short staple and medium staple cotton, which has unduly pushed up their market prices to the disadvantage of the industry. Developing medium staple, high yielding Bt. cotton strains, raising the productivity in areas still growing the traditional varieties of short and medium staple cotton by ensuring the supply of good quality seed and essential inputs, together with a greater spread of modern production technology, would go a long way in reducing the shortage of these cottons. Although the country has made remarkable advances on the cotton front in recent years and generated a large exportable surplus of longer staple cotton, there is still a deficit of 5-6 lakh bales in the extra long staple category. This deficit is now met through imports. Sustained efforts have

thus been in progress to bridge the gap by raising the production of existing ELS cottons and by developing new genotypes that would be more productive and meet the industrys quality requirements. Such efforts have led to the identification of quite a few ELS cottons which are in the pipeline, while some BT cottons of ELS category have also been developed by some private seed companies. While the present domestic production of ELS cottons is around 5-6 lakh bales, the requirement of the Industry is over 10 lakh bales. I In recent years, there have been increasing concerns globally about the need for control of pollution and of environmental degradation. In this context, organic cottons are assuming greater importance. While conventionally grown cotton consumes a large amount of synthetic chemicals as fertilizers and pesticides, organic cotton growing relies only on biologically based IPM technologies for pest control and organic manures for nutrition, eschewing the use of chemicals. Organic cotton has come to be the mainstay of sustainable production programmes of many large and small retailers in quite a few countries. The Cotton Association of India which is an apex body representing the interests of all segments viz. growers, ginners, traders, brokers, exporters, mills cotton co-operatives etc. is engaged in promoting cotton activities in India with a primary focus on development of cultivation, production and consumption of cotton, including research into the improvement of yield and quality. The Association is fully engaged in the aforementioned emerging issues and is actively addressing the same. I am firmly of the view that widespread use of high quality instrument testing at the producer level will achieve the objective of enhancing competitiveness of cotton and thus raise its demand. We at CAI fully endorse efforts made by international organizations like CSITC to encourage commercial standardisation of instrument testing of cotton to bring about global uniformity. CAI has taken up the task of promoting CSITC efforts in India. We also fully affirm the sanctity of contract and adoption of good trade practices. The cotton sector has several challenges ahead in terms of achieving many more milestones. I am sure that encouraging growth in the cotton economy of India will further strengthen its position in both the domestic and the international markets.

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Indian Cotton Fibre: Perspective 2012

By Mr. S.P. Oswal, CMD, Vardhman Group

India has the unique distinction of inheriting a long tradition of cotton textile manufacturing since ancient times. Even today, cotton is the mainstay of the Indian textile industry, constituting more than 60 per cent of total fibre consumption and being also the most important constituent of textile exports from India.

Increase in productivity a key factor

The cotton yield has increased by a compound annual growth rate of 10% during the present decade against 2% in the nineties. The average grew from 263 kg/hectare in 1991-92 to 302 kg in 2000 before increasing to 605 (est.) kg/hectare in the current season. Undoubtedly, the adoption of BT cotton and better awareness of crop management practices have helped the country to increase output.

India: Cotton production trend

Driven by increased productivity in terms of higher yield, linked with BT cotton and improved cultivation practices, together with increases in the area under cultivation, cotton production has grown significantly over the years. The analysis of time-series data reveals that the area under cotton increased from 77 lakh hectares in 1991-92 to 88 lakh hectares in 1999-2000. During the same period, the output increased by three percent (Compound Annual Growth Rate CAGR) from 2.02 million tons in 1991-92 to 2.65 million tons in 19992000. In the following decade, the area under production seemed to reach a plateau, varying in the range of 87-90 lakh hectares, before rising to 95.5 lakh hectares in 2007-08. Output recorded impressive rowth during the latter period, having risen by 11 percent, from 2.38 million tons in 2000-01 to an estimated 5.29 million tons in 2008-09.

Source: ITMF Spinners Committee.

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Future outlook of cotton production

Although India has scored major gains in productivity in the recent past there are opportunities for further improvement. Comparison of yields in India with those obtained in China, Australia and Israel suggests that scope exists for the average to be raised further. Besides, there is also a distinct possibility of increasing the area under cotton cultivation by 8 per cent from its current level, to, say, around 9.8 million hectares. This would potentially lift Indias cotton output to some 7.8 million tons. Trends of cotton productivity in different countries are shown in the accompanying chart.:

India: Growing cotton exports

India has become a cotton surplus country during the past 3 years. It is established now that India will have a long-term surplus of cotton over consumption, leading to increased exports. Exports increased from a negligible level of 50,000 bales of 170 kg each in 2000-01 to 12 lakh bales in 2003-04, and then to 47 lakh bales in 200506 before growing to 85 lakh bales in 2007-08. Exports as a proportion of output have risen from a miniscule level to the equivalent of 27% in 2007-08. The export increase has brought about the integration of Indias cotton trade with the world market, which has significance in many ways for the Indian textile industry. Domestic prices of cotton have become linked with international prices. Therefore, Indian textile industry has to compete without any major gap in prices of cotton over international prices. The open export policy of the Government of India with regard to cotton, giving a free hand to the participation of international merchants, has opened a new dimension to the trade. The international merchants have brought knowledge, understanding and skills that will definitely change the trading and marketing pattern of cotton in India. This is borne out by the fact that domestic prices during August, September and October this year went far above international levels, to the disadvantage of domestic mills that had not covered their cotton when international merchant were exporting large quantities to China and Pakistan. This is likely to have a profound influence on the future buying behaviour of textile mills, which now require an adequate and proper understanding of price movements in all important cotton markets.

India: Deficit in ELS cotton

The history of production and consumption of ELS in India has been chequered. In the early 1990s, the country produced far more ELS cotton than it consumed. However, production declined owing to inadequate efforts in the development of high quality seeds and the absence of a price support mechanism. Although India has the requisite soil conditions and climate for the production of ELS, attention seems to be not commensurate to the need of the task. The chart below shows the gap between ELS production and consumption, along with imports.

India has a tradition of fine count spinning and fabric making. Dhaka Muslin, which was popular throughout the world, is characteristic of Indias fine tradition. The following table shows the production trend of cotton spun yarn in different count ranges, which clearly demonstrate the rising production of fine count yarns.

Decline in cotton import

Obviously, the country is less dependent on imports now than it used to be before the breakthrough in the yield of cotton occurred. However, the continued import of certain varieties of cotton seems to be inevitable, since these are required for the manufacture of certain textile products, which necessitate the use of cottons like Pima or Giza. It is expected that premium cottons of that sort will enjoy sustained patronage in future.

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Future outlook
The present gap between consumption and production of ELS cotton in the country has pushed prices higher, which might give some incentive for farmers to devote more area to ELS in 2009. Nevertheless, it is our belief that Indias import of ELS cotton will remain within a range of 60-80,000 tons/annum. The Working Group on Textiles and Jute Industry for the 11th Five Year Plan of the Government of India (2007-2012) projects the production of cotton yarn to increase to 5,364 million kilos. Assuming 87% realisation, a requirement would be foreseeable for 6,310 million kilos of cotton. If the share of fine yarn in total spun yarn production is assumed at 4%, the estimated requirement for extra long staple fibre would be about 300,000 tons (assuming yarn realization level at 72%). Unless domestic output of such styles incrases from its present level of around 85,000 tons, a wider gap between demand and supply will need to be filled by increase by imports. If India shifts towards exports of higher value-added textile products, the perceived gap could be bigger still.

Summing Up
In my opinion, the future of Indian cotton textile industry is promising. I believe that the current difficult phase in international markets will pass and that textile manufacturing will continue to consolidate in Asia. The growing preference for cotton, especially in apparel, will continue to drive demand for cotton, including extra long staples, both at home and abroad. It is desirable that the country consolidates the gain made in output by ensuring sustainable growth as well as adequate diversity in the varietal balance. India will remain a strong player in the world market for cotton yarn. All kinds of yarn, from NE6 to NE120, are exported, which offers buyers a wide product range and lends strength to the industry. Emphasis on cotton quality is important, particularly in respect of reducing contamination. Improve practices are required to stabilize the supply of high quality products.

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Future of the Textile Sector in India

By Mr. V.S. Velayutham, Chiarman, Texprocil, Managing Director, Sri Gomathi Mills

The textile industry in India has a long and rich tradition of producing a variety and range of products. The country has a strong manufacturing base, particularly for cotton textile items, owing to abundant availability of raw material, trained manpower in manufacturing and design, coupled with a long legacy of textile production. As a result, it has carved out a niche in the global market and customers from different parts of the world are increasingly sourcing their requirements from India. Being the second largest employment generator after agriculture, providing direct employment to about 35 million people and indirect employment to about 56 million, the sector plays a vital role in the Indian economy. It accounts for 14 per cent of Indias industrial production and around 17 per cent of its export earnings.

materials like cotton and cotton yarn, along with stringent labour laws. In the mid-1960s, India was the eighth largest exporter of textiles in the world. With over half a billion dollars ($591 million) of textile exports India had a 7.3% share in the global market in 1965. Over the next twenty years Indian Textile exports entered a declining phase and by the early 1980s, its position had slipped to 14th place. Indias share in textile exports stagnated between 1.5 and 2.5 percent for most of the 1970s and 1980s. Indias textile industry has successfully exploited the opportunities in the post-quota period; in the first year of that era (to March 31, 2006), exports of textiles and clothing recorded an impressive growth of 25.51 per cent, to reach US$ 17.81 billion. However, export growth declined in 2007 to 8.92 percent, in face of the steep appreciation of rupee against US dollar. During the year ending March 2008, exports of textiles and clothing reached US$ 21.99 billion, recording growth of 13.37 percent.

Growth Of Indian Textile Industry

Indias textile industry has witnessed various phases of growth and decline on account of a multitude of exogenous factors. These have included the imposition of quantitative restrictions under preMFA and the MFA regime, preferential treatment status accorded to the selected countries by major importers such as the US, the EU and Canada, and various domestic factors such as government policy tilted towards encouraging the development of small scale units, restrictions at times on exports of raw

India in the global context

Previous articles in this publication have described the countrys rapid transformation from net importer to net exporter of raw cotton. India is also the second largest producer of cellulosic fibre and silk.

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With 37.5 million spindles, India is the second largest producer of cotton yarn and has 1.93 million looms. However, decades of restrictive government policies, which encouraged the development of small-scale industries have led to certain weaknesses in the sector. While India has the largest number of looms in the world, only 2 percent consist of shuttleless looms, which is much lower than the world average of 17 per cent. Besides spinning, other sectors such as weaving, processing and garment manufacturing are predominantly decentralized. The benefits of economy of scale had been sacrificed by reserving for small-scale industries the production of value-added products, such as garments and knitwear. These restrictions have been removed, which has since led to the setting up world-class production facilities in India. Indias share in world textile trade is 3.6 per cent but it is ranked as the sixth largest supplier. India is also the fourth largest supplier of textiles and clothing into the USA, coming after China, Vietnam and Mexico. It is the third largest supplier to the EU, after China and Turkey.

improve the margins of the manufacturers, so that investments continue to remain viable.

Growth Strategy adopted by Indian Textile Industry

Even after three years of the post-quota period, the global textile sector continues to undergo numerous structural changes. Both buyers and sellers are struggling to adapt to the emerging trends in this era. On the one hand, removal of quantitative restrictions has provided exciting new opportunities to Indian exporters; on the other hand it has also exposed them to increased level of competition from other efficient suppliers in Asia, such as China, Pakistan, Bangladesh and Vietnam. In order to compete, Indian companies are rapidly adapting to the changing competition matrix of the post-quota period. Indian textile exporters are moving away from being recognized as a low-cost producer to a full package solution provider to buyers in the developed markets. Indian companies are placing a higher emphasis on non-price factors such as marketing, meeting strict delivery schedules and are also broadening the scope of their services and product range. They are focusing on delivering better quality products at effective rates with minimum lead times. Many Indian textile companies have made substantial investments in acquiring global brands and distribution chains in major markets. Brands that have emerged in India also have the potential of becoming global brands.

Size of the Indian Textile Industry

By value, the present size of the Indian textile industry is estimated at US $ 52 billion. A target has been set to reach a level of US$ 100 billion, representing a market share of 10 per cent of world textile trade by 2020.

Vibrant Domestic sector

The domestic textile market in India is witnessing strong growth led by a young consuming population, rising household income levels, increase in the number of new urban households, higher spending on textile goods and a growing, organised retail sector. On account of these factors, the domestic market is expected to grow at 8% p.a. and reach a level of US$ 85 billion by 2020, from US$ 34.6 billion at present.

Environmentally friendly product

Realising that developed markets such as the USA and the EU would be placing higher emphasis on environmentally friendly products and social corporate responsibility, Indian manufacturers have been adopting production systems and finishing processes that generate the least pollution and use less or no water. They are focusing on the development of easy-care finishes that require less washing and laundering. The demand for organic cotton and biodegradable textiles is on the rise and Indian exporters are preparing themselves to take advantage of the emerging opportunities in this segment.

Growing Investments
Investments in the textile industry have picked up in the last three years, mainly on account of the modified Technology Up-gradation Fund Scheme (TUFS), which has provided an excellent impetus to the much-needed modernisation and upgradation of manufacturing facilities. Total investment has reached a level of US$ 24.27 billion. The Government has shown foresight by further extending the scheme during the 11th Five Year plan period. Investments amounting to US$ 28 billion are envisaged by 2012. Measures such as Technology Mission on Technical Textiles, creation of investments zones for the textiles sector and setting up of apparel and textiles training institutes are proving helpful in attracting investments. However, it is of vital importance that concomitant efforts be made to

Conclusion
Indians textile industry has inherent strengths, such as self-sufficiency in terms of availability of raw material, vertical integration across the value chain, excellent design and finishing capabilities. With growth-oriented government policies in place, Indian exporters need to create innovative marketing strategies and show excellence even in these turbulent times, when most markets are facing unprecedented recessionary pressures. In the years to come, Indian textile industry is set to scale new heights.

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ITMF Spinners Committee Visits India

October 17 23, 2008

From October 17 23, 2008 the Spinners Committee of the International Textile Manufacturers Federation visited India. Time was spent in the cotton growing areas in the states of Gujarat, Haryana and Maharashtra and formal visits were made to Government and Association officials in the cities of Delhi and Mumbai.

Objective of the visit

To evaluate the situation of cotton growing and ginning in India as compared to 6 years ago when the ITMF Spinners Committee visited India in 2002. To evaluate the evolution and sustainability of BT cotton in India To evaluate the handling and quality improvements. To evaluate the potential for increased production over the next years To evaluate the comments of the textile industry and their vision on cotton in India.

showed the potential when using planned irrigation, soil preparation and heavy application of fertilizer. In theory, these fields were a clear demonstration of the further potential that new technology, as well as good farming practices, can achieve. However, the Committee must warn against the extravagance of plant height. Firstly, experience in other countries has shown that tall plants, due to the known law of diminishing returns, rarely return the investment in water and fertilizer. Secondly, the quality of cotton tends to suffer, as large plants use their energy to grow tall, rather than to produce full and heavy cotton bolls. Thirdly, tall plants compromise hand picking, immaturity is greater and dense leaf shade on the lower bolls is conducive to boll rot. Experience has shown that the ideal height is about 1.20 meters the maximum without reducing yields; on the contrary such compact plants produce more cotton. Australia is an example of compact irrigated cotton. The opinion of the Committee is that the current higher production is sustainable and can well increase, provided plant growth is controlled and, most important, that modifications in the genes in Bt seeds are constantly introduced to the farmer, to avoid the bollworm becoming resistant to the current event. This is all the more important when it is quite clear that India will not be able to adopt a tight refuge system, (an area of conventional cotton encircling the Bt crop), to avoid the inevitable build up of resistance. Mixing of seed varieties and cotton from different farmers does not seem to pose a serious problem for Indian cotton, since it is clear that the region, soil and climate where the cotton is grown seems to have the greater impact. Therefore, the Committee offers no criticism of the mixing at the market yards, and separation of quality at the gin yard, rather than separation by farmer and/or by variety, but does warn

Overall comments/impressions Cotton

The Committee could find no fault with the intrinsic quality of the cotton; clearly Shankar-6 in Gujarat continues to be superior to the J34 in Maharashtra despite the overall enhancement of quality resulting from many improvements in the cotton chain, including the introduction of Bt Cotton. Also the well-known and accepted improvements in yields were very much in evidence, not only from the many field visits but also from roadside evaluation. Fields are more uniform and better cared for than was noted during the Committees previous visit. Clearly with improved returns to the farmers, thanks principally to the yields, more resources have been devoted to looking after the crop. Recently. Micronaire has tended to be slightly coarser and the Committee recommends that the researchers do not overlook this important characteristic of cotton in their attempts to achieve improved yields through heavier bolls. The Committee visited some spectacular fields in which the production, growth and height of the plants

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about mixing cottons from different growing regions; i.e. the transfer of seed cotton from one area or state to another, in an attempt to obtain the better area premium, should be avoided at all cost. Mixing poorer characteristics cotton together with better characteristics only downgrades the final result as far as the spinner is concerned. Overall, the impression was very positive. Clearly Bt is well known and accepted by the farmers and textile industry alike and many people in India are to be congratulated on this achievement.

Ginning
Officially, the Ministry of Textiles has set a target of 1,000 ginning & pressing (G & P) factories for modernization under the Technology Mission on Cotton (TMC). Against this, 992 projects have already been approved for modernization, and of this, 748 factories have already completed their projects and the balance is under implementation. Despite this, the Committee was somewhat disappointed with the evidence presented compared to 8 years ago, as the progress seemed more limited than had been anticipated. There was no evidence of a standard approved level; the Committee visited TMC approved gins which were quite different in terms of mechanisation, cleanliness and cotton handling, indicating that there is still a long way to go as regards a standard scale for TMC gins. For example, the Committee visited a gin where the gin stands were still being fed by hand, (or feet), mostly were very dirty, with the workers dressed in multicolour dresses, uncovered heads, and some without proper shoes, all of which leads to a conclusion of poor housekeeping. The Committee also noticed an apparent disregard for fire and safety precautions. The patios for receiving cotton at the gins have definitely improved, though still very labour intensive with the workers not using white cotton uniforms, thereby encouraging contamination of cotton. However the Committee was pleased to note the introduction of pre-cleaning machines that were successfully taking out the immature lobes. This pre-cleaning is definitely preferred to the system of lint cleaning, which was noticed in various gins, since this tend to damage the cotton and increase the neps and short fibre content. Most gins still have separate baling presses which involves workers transporting the cotton by hand and pushing it in to the hydraulic pre-press, by shear manpower. Apart from the contamination aspect this process involves, safety procedures were not in evidence. One of the gins visited was in the process of installing a modern press and automated transporting system, including an electronic contamination detector, making a total investment of USD 600,000.

The Committee therefore would like to recommend perhaps a scale or rating for TMC approval, with a target set for rating, AA being fully automatic feeding, handling and baling of cotton. There could perhaps be five scale levels, with a target for each level. However, in general, the Committee commends the system of roller ginning, despite the old machinery, which with good maintenance is without doubt helping to preserve the quality of the cotton and the excellent fibre characteristics. Systematic preventive maintenance of the roller gin is very important and, although the operators have an excellent feeling for the machines, the Committee would like to suggest the use of a simple laser thermometer to detect the temperature of the roll along the entire length to ensure even ginning at the moment of separation of the fibre from the seed. The Committee visited a number of the organised market yards (Mundis), where the growers can deliver their cotton for auction. This is indeed an excellent system to ensure the farmers obtain a fair market price. The yards visited were extremely well organised, some under cover. The cotton lots are sold in plies on the ground, clean concrete or directly from the farmers transport. Ideally this cotton should arrive at the stations without being covered with plastic fibrous sheeting. Finally, the Committee would like to recommend that a universal bale tag be introduced showing the origin of the cotton and where it was ginned. This might go a long way to avoid the falsifications of the cottons origin. Falsification is a serious problem for the marketing of Indian cotton.

Organic Cotton
Organic Cotton is a niche market and the Committee is of the opinion that pure organic cotton is not financially sustainable over the long run. In time, the consumer will not be prepared to pay a premium that shows no benefit to them or the farmer. The Committee recommends that India mounts a campaign, perhaps even with the assistance of the Government, to convince the public that Bt cotton should be regarded as the closest step towards organic cotton, since it does not change the characteristics of the cotton, but reduces applications of toxic insecticides, and gives a better return to the farmer (fair trade), instead of treating Bt cotton as unsafe and unhealthy, as retailers and some press reports are suggesting.

Contamination
Contamination continues to be one of Indias major problems, though it is evident that there are positive developments, and reports indicate that the quantity has been reduced. Still today, Indian cotton is discounted from its true cotton value and in India certain mills are buying from only selected gins at a premium.

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Some members of the Committee felt that there is a lack of communication between farmers, ginners and scientists and therefore more communication and education is needed for the farmers. Others believe that contamination can be reduced only if there is a strong financial premium paid. Education will always help but will not be the solution, as by its very nature hand picked cotton will always be contaminated.

industry competitive for a longer period if these compliances are met in India but not in new competing countries like Bangladesh, Vietnam, etc.

General
The Committee was pleased to note the farmers organisations and cooperatives appear to be better informed and more aware of the needs of the spinning industries. Perhaps as they are now more in touch with the export market more emphasis is being placed on performance in all senses of the world. This is an excellent development which we trust together with some of the Committees suggestions will help the Technology Mission on Cotton (TMC) II (Transfer of Technology) achieve the aims of making Indian cotton something to be justly proud of.

Research
The Committee was immensely impressed with the research being carried out in cotton in India. The question of drought resistant seeds was discussed and the Committee felt that this should not be restricted to dry areas but also adapted in water affluent regions in order to reduce the amount of water use, as a contribution to the environment.

Social and Environmental Compliance

This should be seen as an opportunity rather than a threat since it will keep the Indian cotton and textile

Participants Committee Members & Secretariat

Ziad Bashir Werner Bieri Andrew Macdonald B.K. Patodia Christian Schindler Pakistan USA Brazil India Switzerland Gul Ahmend Buhler Quality Yarns Santista Textil (Committee Chairman) GTN Group ITMF

Invited Guests
Fritz Grobien John Mitchell Germany USA Albrecht, Mller Pearse Cargill (on Oct. 21 only)

The Spinners Committee would like to express its gratitude to Mr. B.K. Patodia, Vice Chairman and Managing Director, GTN Group, the Indian member of the ITMF Spinners Committee, who organised the visit, together with Mr Gajaria and Mr Marash C. Thakker of Perfect Cotton. Our thanks are also extended to Mr. Suresh Kotak, who assisted with the arrangements. Throughout the visit the Committee received outstanding hospitality from everybody with whom the Committee came in contact, which was deeply appreciated. The Committee also appreciated the time and energy of Mr Fritz Grobien who accompanied the Committee as a special guest throughout the visit as well as John Mitchells company to Hissar (Haryana).

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Dynamics and New Developments of the Ginning Industry in Saurashtra

By Mr. Anand A, Popat, Secretary, Saurashtra Ginners Association, Managing Director, Jalaram Cotton and Proteins Pvt. Ltd. Saurashtra is a region of western India, located on the coast of the Arabian Sea in the state of Gujarat. The geographical situation of Saurashtra is very suitable for cotton. The area mostly has black fertile soil and hilly topography. The area is surrounded by sea. Climatic conditions range between 14C to 44C during the cotton season. Accordingly, the cotton fibre produced has some special features: Shankar-6 has more maturity, good elongation and good dye affinity; the fibre surface has extra wax. Thus, Shankar-6 from Saurashtra has assumed a leading position in the world market. Saurashtra has a total land area of 6.34 million hectares, of which 4.17 million are arable. In 2008/2009, the area under cotton is put at more than 1.6 million hectares and production is forecast to reach between 7.0 and 7.5 million bales (of 168 kilos). This amount would represent approximately 65% of production in Gujarat and 25% of total production in India. Cotton production in Saurashtra has increased by leaps and bounds during the last ten years owing to the rise in cultivated area and also increases in yield. Bt seed varieties have contributed to the increase in production. Farmers in the region are hard working, aware of technology and apply scientific methods of cotton farming. In Saurashtra, average lint yield is 900 kilos per hectare but the maximum obtained some districts can be as high 1,500 kilos. Output has quadrupled over the past four years and the possibility exists of further increases. The number of (ginning and pressing) composite units has multiplied over the same time period from 50 to roughly 450 units. Most of these units have been equipped with modern technology and are fully automatic. From input to final dispatch, no direct manual handling of the cotton is necessary, which has resulted in a quality product and less contamination. After precleaning, seed cotton is automatically fed to double roller ginning machines, which preserve the fibre length and introduce fewer neps. Hereafter, the cotton is cleaned in the post cleaner and the cotton is sent through online humidification to the bale press. The entire process is handled by a pneumatic and conveyer belt system. The pre- and post cleaning machines are of an advanced type. Many units have installed the most advanced, online lint conditioning systems using hot humid air, which eliminates chances of, 1 developing yellow spots & colour during cotton storage 2 possibilities of bacterial growth and cake formation 3 addition of contamination during the process. This method of lint conditioning maintains uniform moisture distribution in each and every fibre of cotton, resulting in better quality.

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Most units are equipped with fully automatic, double box auto tempering type revolving presses, with automatic weighing and packing of bales. Online weighing of bales, raw cotton and cottonseed, as well as data storage, are in the development stage. Some ginners have also installed ultramodern contamination scanners on a trial basis. Owing to hot, dry climatic conditions in the summer, the humidity of cotton reduces to as low as 4.5%. Ideally for ginning, moisture content should be 7.5%; to obtain this level, the use of (hot, moist, air-based) conditioning systems is also being trialled. Ginners and farmers have increasingly come into direct contact with each other over the last few years. Farmers understand the requirements of the trade and they are aware of the need to minimise contamination in the cotton. Moreover, as they carefully hand pluck the raw cotton from the plant they get cotton with less trash, thus providing a good raw material for the ginning industry. Appropriate grading, sorting, blending and heaping of seed cotton is a unique feature of Saurashtras ginning industry, which has resulted in less variation from bale to bale. The overall trading environment has improved substantially. Along with modern equipment, ginners are also developing good infrastructure facilities which include: I Concrete Platforms & shade for raw cotton unloading and heaping Dust free compound

Well-planned process houses considering the process requirement

constructed

I I I I

Utility buildings as per the requirement Concrete approach roads Fire fighting systems Godown and platforms for cotton bales and cottonseed Ginners of Saurashtra have made remarkable advances over last few years. Consequently, a significant reduction has been achieved in incidences of contamination, trash content has fallen from an average of 3.5 percent to less than 2.5 percent, quality consistency has improved, better bale packaging has been achieved by using cotton cloth and PAT straps rather than jute cloth and iron straps.

Ginners of Saurashtra have implemented these developments in a short period of time, by sharing information with each other, understanding the needs of the end user and adopting new, progressive ideas. They have established the Saurashtra Ginners Association (www.sgaindia.org). At pesent, the cotton industry in Saurashtra is facing a very tough time, resulting from excess ginning capacity in the region and the governments decision to introduce this season much higher minimum support prices for seed cotton, At the time of writing, the latter were above the levels ginners could afford to pay, given the prevailing market prices for lint. In consequence, ginners have been focusing on broadening their activities to include cottonseed delinting, seed crushing, oil extraction and refining.

Process Flow-sheet of Fully Mechanised Double Roller Ginning & Pressing Plant
Kapas feeding points Kapas feeding points Cyclone

Kapas suction fan (stage 1) Online lint humidification sustem

Lint suction fan Stone catcher

Pro cleaner Screw conveyor for Immature Cotton Bolls Double roller gins with automatic lattice feeder Cyclone Post cleaner

Automatic double box bale press

Blower for Immature Cotton Bolls Conveying

Cotton seed conveyor Lint suction duct

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Prospects of Organic Cotton in India

By Mr. Dilip Jiwrajka, Managing Director, Alok Industries

Organic cotton:
Organic cotton production as a futuristic approach to farming is based on the concept of sustainability, which is a productive permanence or long-term sustenance of an agricultural system, requiring conformity to environmental friendly norms, optimal utilisation and conservation of scarce resources, economical viability and commercial competitiveness and effective support to the social system. Organic cotton is grown by the use of economical methods and inexpensive materials that prohibit the use of highly expensive and toxic agro-chemicals, including synthetic fertilizers and pesticides. This method of cultivation conserves resources. It not only restores but also maintains and enhances ecological harmony, including soil fertility and biodiversity with a very low impact on the environment. The growers do not need to accumulate debt to buy costly farm inputs. Commercial organic cotton production is a relatively new agricultural vocation constituting around 2% of the total worlds organic arable land area. Organic cotton constitutes a tiny niche (0.56%) of the total worlds conventional cotton production. As one of the most rapidly growing areas, organic cotton today is cultivated in more than 22 countries around the world. India, Syria, Turkey, China and Tanzania together grow around 94% of the worlds organic cotton.

Organic cotton market:

Ethical consumerism is fuelling the demand for ethical textiles. This is reflected in the increasing retail sales of organic cotton products, which for the past few years, have been growing at a rate of 32% per annum. The Organic Exchange contends that from just 0.25 billion US dollars in 2001, world retail sales of organic cotton products in 2008 are estimated to be around 3.5 billion US dollars and are projected to be around 6.8 billion US dollars in 2010. Europe, North America, Middle East, Asia and Australia continue to remain important hubs for organic cotton textile demand. After surpassing the US, Europe today accounts for more than 76% of world trade. The US and Canada have a market share of 21%. Important retailers are fast adding organic cotton clothing and textile lines to help organic cotton become more mainstream. The number of brands offering organic cotton products has increased from 200 in 2003 to more than 800 today. Consumption is fast catching up with production and, of late, the trend has been to pre-contract crops. More collaborative and long-term partnerships, effective value chain organisation and integrity are considered as the necessary ingredients for the organic cotton supply chain management and achieving sustainable competitive advantage.

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Indias importance in organic cotton production:

As per the latest data collected by the Organic Exchange, India has emerged as the largest producer of organic cotton in the world. During 2007-08, India produced around 74,000 metric tons (more than 433,000 bales of 170kg each), representing a significant share of around 51% of total world organic cotton production. However

Organic cotton production in India is also characterized by the production of organic Extra Long Staple (ELS) cotton suitable for spinning finer counts. Famous Indian ELS types like DCH-32 (34mm and longer) and long staple varieties like Bunny Brahma (30mm and longer) are also available in their organic form. With more than 80% of the worlds total organic ELS production India stands out as a diverse supplier of organic raw cotton in the world. However, the majority of organic cotton production in India belongs to the medium to superior-medium staple category, ranging from a fibre length of 27mm to 29.4mm and a Micronaire range of 3.5 to 4.5, with maturity and strength at par with conventional cotton. The organic equivalent of the famous Indian Shankar-6 variety, indigenous to the state of Gujarat, is also grown in small pockets in the state.

India as a sustainable source of Organic cotton supplies: Tremendous potential

In India, cotton is a principal cash crop, its cultivation spanning ten states with a wide variety of soil and agro-climatic conditions suitable for both conventional and organic cotton production. Organic cotton production in India holds tremendous potential since 65% of the area is rain fed and characterised by the use of 20% of organic cotton production in India is just 1.4% of the total conventional cotton production in the country. The area under organic cotton in India is around 245,000 hectares, which is around 72% of the total certified organic area (339,113 hectares) worldwide and 2.6% of the total area under cotton (9.56 million hectares) in the country. Besides this, an impressive 265,000 hectares of arable land is under conversion to organic production and is likely to add to the huge bounty of organic output in India. Organic cotton is grown in seven states in India, with Madhya Pradesh topping the list, followed by Orissa and Maharashtra.

the fertilizers and 15% of the pesticides compared with conventional irrigated cotton. This positions organic cultivation as an economically feasible substitute to the intensive chemical agriculture practiced during the green revolution. The interesting aspect of organic cotton production in India is that a few decades ago, most of the cotton cultivation in this agrarian economy was green or environmentally friendly, with little or very low use of toxic agro-chemicals. Millions of skilled cotton growers have been practicing low input agriculture for decades. To some extent, this is even true today. Large tracts of tribal, rain fed land

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different cotton growing states of the country. An assured price premium, employment prospects and opportunity to expand market share appeals to the vast majority of the small, marginal farmers and may result in reasonably high conversion to organic cotton cultivation. Besides transforming the naturally coloured cotton found in India to Colorganic, blending of organic cotton with conventional by the domestic industry can help check demand and supply aberrations.

in the mountainous areas of Central India (comprising around 18 million hectares), and DCH-32 growing tracts bordering Tamil Nadu and Kerala in the southern zone, are still under low input agriculture. The small holders out of scarcity of farm resources are practicing low input farming by default and can build on this for easy and cost effective conversion to organic cultivation.

Government Initiatives:
The Government of India has implemented the National Program for Organic Production (NPOP), which promotes organic farming, lays down norms for organic production and implements an accreditation program for certification bodies. Indias NPOP standards of production and accreditation system are recognised by the European Commission and Switzerland as equivalent to their standards, while USDA recognises NPOP conformity assessment procedures of accreditation as being equivalent to those in the US. These recognitions assist the export of Indian organic products to valued customers overseas. There are around 11 accredited, world class certifying agencies in the country serving a large number of organic farming projects.

Desi cotton varieties (G. arboreum and G. herbaceum), indigenous to India, and, in fact, all similar short staple cotton varieties, unlike American and hybrid varieties, have a natural ability to withstand stress, are very well adapted to the vast variety of agro-climatic conditions and are ideally suitable for organic cultivation. With around half of the worlds organic cotton farmers already situated in India, still larger numbers are under conversion to organic cotton production in

In Orissa, which has a huge potential to grow medium and long staple organic cotton, the government has been proactive in promoting organic cotton by controlling variety selection and the supply of seeds.

The robust Indian textile industry and organic cotton:

India is the 2nd largest consumer and exporter of conventional raw cotton in the world. Indias domestic textile industry is the 2nd largest producer of cotton yarns and textiles and also a major exporter of textile products. More recently India has become a major sourcing hub of cotton textiles for leading global retail brands. The Indian textile industry also boasts a large and vibrant handloom sector and is vertically as well as horizontally integrated with a strong presence in the entire value chain from raw material to the finished goods.

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Challenges:
The organic cotton production in India also faces some challenges. They include I Lack of appropriate organic cotton farming technology and large variations in organic practices, I Lack of systematic research on development of suitable varieties, biofertilizers and IPM techniques, The removal of the quota system for exports to the US and Europe has put India on a firm footing in regard to sales of both conventional and organic cotton textiles. Ideal for captive consumption of indigenously grown organic cotton, this synergy bestows organic cotton with a very bright future. Besides exports of organic cotton fibre and textiles, the resilient Indian economy, increased consumer awareness about the use of organic products, higher disposable income and booming retail business are expected to be strong drivers for domestic consumption of organic cotton textile products. I Lack of organic cotton production plan at national level and limited state participation, I Economies of scale hampered by fragmentation of holdings, smaller farm sizes and resource-poor nature of farming, A prospective narrowing of the premium for organic cotton and textile products as organic cotton becomes mainstream, which may negatively impact the further adoption of organic cotton production.

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The future:
India, with a well-developed domestic conventional cotton market and a mature textile industry, enjoys enormous access to world outlets as well as a potentially huge domestic consumer base. The potential is huge for the production, processing and marketing of organic cotton and organic cotton textile products. The synergies that are available within the country, and the number of organic projects now active, indicate that India is poised to retain, if not augment, its numero uno position in the world of organic cotton.

References
APEDA, 2008, National program for organic production, Agricultural and Processed Food Products Export Development Authority, Ministry of Commerce & Industry, GOI, viewed 5 November 2008, http://www.apeda.com/apedawebsite/organic/Organic_Products.htm Cotlook, 2008, Global cotton news and information: November 7, 2008, Cotton Outlook, vol. 86, no. 45, pp.11 EICA, 2007, Cotton Statistics and news, No. 4 dated 24.04.2007, IFOAM, 2008, the world of Organic Agriculture Statistics & Emerging Trends, International Federation of Organic Agriculture Movements, Bonn Germany, http://www.ifoam.org/press/press/2008/20080221_statistic.php ITGO, 2008, Health, environment and taste hike appetite for organic food, India Today Group Online viewed 5 November 2008, http://www.itgo.in/index.php?option=com_content&task=view&id=2537&sectionid=3&secid=16 McWilliams, D. A., P. J. Wakelyn, et al. (2007). Considerations of organic cotton production and ginning. Proceedings/Symposium National Cotton Council Beltwide Cotton Conference. January 9-12, 2007, New Orleans, LA. 2007 CDROM. Mor, A 2008, Organic Cotton-Stories from the Indian States, 2008 India Regional Meeting, Aurangabad, Maharashtra, India, Organic Exchange, viewed 1 November 2008, http://www.organicexchange.org/meetings/winter08India.php Organic Exchange, 2007, Organic cotton market report 2007, Organic Exchange, viewed 5 November 2008, http://www.organicexchange.org/members_page.php Organic Exchange, 2008, Organic cotton Farm and fiber report 2008, Organic Exchange, viewed 5 November 2008, http://www.organicexchange.org/members_page.php Organic Exchange, 2008, Organic cotton Farm and fiber report 2008, Organic Exchange, viewed 5 November 2008, Organic Monitor 2008, UAE: Ethical textiles gaining Popularity, viewed 5 November 2008, http://www.organicmonitor.com/row.htm#2

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CIRCOT Calibration Cotton: A Standard Reference Material for Use in HVI Testing

Dr. S. Sreenivasan & Dr. R.P. Nachane, Central Institute for Research on Cotton Technology

Introduction:
The Central Institute for Research on Cotton Technology (CIRCOT) has been serving the cotton community at large through its research and developmental activities for the past eight long decades in the area of post harvest processing, quality assessment, yarn and fabric manufacture, eco-friendly chemical finishing and by-product utilization. Several technologies, machines and processes developed by the Institute have been adopted by the industry and machinery manufacturers with enhanced commercial viability. Apart from this, CIRCOT, performing its role as a technology partner in the All India Coordinated Cotton Improvement Project (AICCIP) of ICAR, has rendered an invaluable service in achieving self sufficiency in cotton. Also by providing timely service in quality assessment to the cotton trade in the country, the Institute has played a premier role in augmenting cotton export in the recent past.

same sample carried out under the same conditions. Accuracy is the closeness of agreement between the results of measurement and the true value of the measurand. Thus, a laboratory may have results of high precision but not necessarily accurate. To determine the accuracy of a measurement, one has to take recourse to calibration. Calibration of a measuring device acts as an interface between the measured data and its true value. Calibration by definition is a set of operations to establish under specified conditions the relationship between values indicated by a measuring instrument, measuring system or a material and the corresponding known values of a measurand. It is essentially a comparison under specified conditions with higher standard that is traceable to national or international standard or an acceptable alternative.

Calibration Cotton for HVI:

To ensure accurate results testing with HVI has to be carried out at 65% 2% rh and 27C 2C by using an already well opened and conditioned fibre sample. A daily calibration check with a set of calibration cottons prior to testing regular sample would reveal the state of calibration of the instrument. If the values lie within stipulated tolerance limits, routine testing with the instrument is taken up. If not, recalibration is performed with a set of standard cottons, which would make adjustments in the software for automatic compensation for drift in calibration due to aging of components. HVI calibration needs a set of three calibration cottons. However a set of two cottons also would suffice if the

Why calibration?
The technological worth and in turn the commercial value of cotton lint is decided by its physical attributes like length and its variability, fineness or micronaire value and tenacity, apart from the moisture content and trash. All the above parameters are objectively assessed using standard instruments in order to obtain reproducible results. This is possible only when the measured data is both repeatable and accurate. Reliability or precision is the closeness of agreement between the results of successive measurements of the

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Micronaire difference between the two exceeds 2.5 mg/inc, tenacity 6 g/tex and length 7 mm. A specified number of tests is performed first with the longer of the two cottons followed by the shorter. A software compares the tested parameters with the nominal value and readjusts the calibration line. If repeated failure of calibration with standard cotton occurs, it implies that either the software or the hardware defects have to be attended to by servicing the instrument. Thus the built in checks along with calibration with the standard cottons would always ensure that the instrument output is accurate. From the above description of calibration cotton for testing equipment, it is clear that the calibration cottons used in testing are not exactly calibration standards for calibrating instruments the way it is done in the case of equipment used for measurement of basic physical parameters. The instruments measuring fibre length, fineness or strength are calibrated at the factories during manufacture and the use of cotton standards from a Standard Reference Material will give information about the calibration status of the instruments. The settings of the instruments can change over a period of time during use, causing drift in readings mainly due to aging of components. Testing of a calibration cotton will make such changes obvious. If there is any deviation beyond tolerance limit, the instrument requires calibration as mentioned earlier.

CIRCOT Calibration Cotton Standards for HVI:

Calibration cotton being a processed and blended material is supplied in small quantities (normally 200 gm in one packet) from a bulk sample; it is necessary to ensure that intra-packet and inter-packet variation in fibre attributes for a given sample type is kept to a minimum at acceptable limits. This is achieved by preparation of a highly homogenous lot and individualization of fibres by cleaning, opening, blending, mixing operations, by using a set of machines with optimum processing parameters and starting with raw cotton sourced from the farm wherein quality inputs, including seeds, are used by following the best management practices for raising the crop. The characterization of the processed lot at each stage is carried out by testing the fibre parameters. It is ensured that any part of the bulk sample tested should give the same result. By testing with different operators it is also ensured that the values obtained by them agree within statistical limits of tolerance.

Assigning the Values for Calibration Cotton:

The homogenized and blended samples are sent to different HVI laboratories and tested and reported under a standard format. So far, 13 such inter-laboratory tests have been carried out with the participation of about 35 to 60 laboratories. The round robin test results are then subjected to statistical analysis and scores are calculated for each of the parameters and communicated to the concerned participant. Z scores of less than 1 are supposed to be the best. If Z score for a lab falls between 1 and 2, the laboratory is presumed to be testing properly. For Z score between 2 and 3, it is envisaged that there may be some problems in testing that particular parameter and the laboratory should try to set right that problem. Laboratories having

USDA Calibration Cotton Standards:

In order to calibrate the cotton testing instruments such as the HVI, the International Calibration Cotton Standards Committee (ICCSC) through the United States Department of Agriculture (USDA) provides a series of International/USDA standards. These are used throughout the world by the name ICC Cotton Calibration Standards earlier and currently as HVI cotton standards supplied along with the instruments by the manufacturers and are to be purchased from USDA after the stocks get exhausted. The import of Calibration Cotton involves cumbersome procedures costly foreign exchange and built-in delays due to statutory need for quarantine and fumigation of cotton coming from outside. About 10 years back, USDA changed the standards from ICC mode of testing to HVI mode of testing. The Indian industry. then using ICC mode of testing, found it difficult to change over suddenly from ICC mode to HVI mode. CIRCOT then took up the responsibility of preparing and marketing of calibration cotton standards by establishing a procedure for preparation of homogenized samples and assessing their true values.

Source: ITMF Spinners Committee.

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Z score more than 3 are the out layers. Results from such laboratories are not acceptable and the concerned laboratories are informed about the same. Laboratories are instructed to contact the machine manufacturers and set their instrument in proper working condition. Results from all the eligible laboratories are then analysed and the mean values are compared with grand average for the entire homogenized lot. If the results agree well the cotton sample is assigned values for each of the measured parameters. In the laboratories that are participating in the inter-laboratory tests, instruments used are not belonging to any specific manufacturer. The

traceability for the standards. This was noted to be true for HVI standards as well. Tables 1 and 2 below bring out this fact clearly. The above results clearly bring out the fact that CIRCOTs Standards compare favourably with the internationally accepted USDA Standards in terms of accuracy, repeatability, and reproducibility. Table 3 below would further confirm this observation. The popularity of CIRCOT calibration cotton within the Indian industry can be gauged from the fact that more

atmospheric conditioning for each of these laboratories is also ensured. In this way, calibration cotton standard is assigned parameter values with their respective tolerance and uncertainties.

Highlights of CIRCOT Calibration Cotton:

Results obtained for USDA-ICC standards on HVI calibrated with CIRCOT standards revealed very good agreement thereby establishing a high level of

than 7,000 packets of 200 g each have been sold during the last 10 years. The repeat orders from the users bear testimony to the fact that the industry has accepted in total this import substitute reference material. A few overseas buyers have also shown interest in the standards produced by CIRCOT. Over the years the Institute has been able to build a strong customer base committed to this indigenous calibration cotton.

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Improving cotton quality to meet textile mill requirements

By Shirish R.Shah, Director, Cotton Association of India Director, Purman Cotton Co. Pvt. Ltd. Partner, Bhaidas Cursondas & Co.

Quality is a perceptual, conditional and a somewhat subjective attribute. Quality of a product refers to the perception of the degree to which the product meets the customers expectations. It is not what a supplier puts in, but what the customer gets out, and is willing to pay for, that is important.

time. There are many variables and the same seed can give different results in different agro-climatic zones. Efforts can be made to reduce variations in fibre properties. The future approach to breeding for quality has to be through bio-technological innovation. Fibre property requirements have been adjusted to meet the technological evolution in yarn making from solely ring-based spinning to, predominantly, rotor spinning and, potentially, air-jet spinning. Ring Spinning: Minimum fibre length and strength; less concern about fibre fineness (Micronaire).

Improvement of Quality
Cotton is an agricultural and a natural product. It cannot be considered as an engineering product with close tolerances. Although it is now possible to measure the various parameters of cotton by HVI and AFIS, it is difficult to obtain cotton within certain parameters all the

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Rotor Spinning: High fibre strength and lower Micronaire for fine counts. Air Jet Spinning: Uniform fibre length and fibre fineness (Micronaire), Fibre strength requirement is not very high. A five-way approach can be made for improving the quality of cotton (the conditions prevailing in India have been mainly considered) including better seeds for sowing; improved farm practices; better seed selection; controlled post-harvest processing; superior handling, storing and transporting. 1. Better seeds for sowing: The doubling of Indias cotton production has occurred in a short span of only two years as a result of superior seeds like RCH-2, Bunny, Mallika, Navbharat151, Ankur-651, MECH-12. At present, 215 seeds comprising Bt and Bollgard II, have been approved by the GEAC (Genetic Engineering Approval Committee of the Government of India). Production has increased and sustained at a high level with better yields, ginning outturns and improved fibre properties. Average yield has reached about 3.5 bales (595 kilos) per hectare. Ideally, a yield of 6.0 bales (1,000 kilos) should be achieved on irrigated land. Ginning outturn has improved from 30/33% to 33/36% and is likely to rise to 37/40%. Staple length and Micronaire have improved. India produces a large surplus of 28.5 to 30 mm cotton, which is exported after leaving a sufficient quantity for domestic mills. Tenacity or bundle strength has increased, but mills desire further improvement. It is a challenge for the breeders to produce seeds that will yield lint with a strength-to-length ratio of 1.2 to 1.31 (on HVI mode). It is essential for the longer staple varieties and more so for extra long staple cotton. 2. Improved Farm Practices: Inputs of assured quality, with scientific support, can only lead to better farm practices and management. The Technology Mission on Cottons Missions I and II have had an impact. Efforts to help farmers get better inputs and technical support have also been forthcoming from several NGOs, the Cotton Corporation of India, mills such as Super Spinning, the Vardhman Group, Gokak Mills and Arvind Mills, as well as trade associations like the Cotton Association of India (CAI), the South India Mills Association (SIMA) and the Confederation of Indian Textile Industries (CITI). Contract farming is increasing and it can be a future key to improved cotton quality. Price assurance, low interest loans and crop insurance, along with good inputs, should help solve the farmers problems and assure quality of production. 3. Better seed cotton selection: Seed cotton is purchased directly from farmers in their village, at the agricultural produce markets or is brought by the farmer to the ginning factory. Good selection and grading of seed cotton is necessary to produce good quality of cotton. A number

of tests are carried out, including assessment of the grade and separate heaps for different grades; moisture test by moisture meter; micronaire test; staple length assessment; tenacity assessment; ginning outturn assessment. Lots deficient in quality are rejected outright or attract a discount. A premium is payable for superior lots. Good seed cotton selection assures better appearance of cotton and hence of yarn and cloth. A pre-market survey of all cotton centres in a 50 to 80 km radius from the ginning factory is required to assess the health and quality of plants, incidences of disease, potential yield and ginning outturn and other likely parameters. This assists in selecting the cotton centres from where to purchase seed cotton. Experience in purchasing seed cotton is required to foresee how cotton will look like after ginning. There are no standard parameters for seed cotton in India and in most cotton producing countries. 4. Controlled Post-Harvest Processing: Seed cotton received at the ginning factory contains contaminants and efforts are required by man and machine to clean the seed cotton and to take great care to see that no further contaminants are added. Prevention is better than cure for contamination, which is difficult to remove once it enters ginned cotton. The workers have to be educated and monitored continuously to assure production quality. To get the best results from a gin, good fitters are required who follow a regular maintenance programme. Recommended bale packaging is cloth made from at least 18s count yarn and with 56 x 60 reed picks, which helps prevent contaminants from entering bales, which should be fully covered. All markings have to be on labels, to prevent marking ink from percolating to the cotton. Good packing also prevents stains from rusted baling hoops. Each lot has to be tested on HVI for quality assessment of fibre properties and grade, to ensure suitable cotton is available to mills. 5. Superior Handling, Storing and Transportation: Even the best cotton can be spoiled in the absence of good handling, storing and transportation. Cotton has an electrostatic charge and can pick up all dust, dirt and contaminants easily. As far as possible, bales should not touch the ground, unless the ground is cemented or covered by tarpaulin. Storage is best in covered clean, dry godowns used exclusively for cotton that have good fire protection. Bales stored in the open should be covered. Transportation is the last stage of cottons post harvest processing an attention to cleanliness and avoiding contamination remains a prerequisite for maintaining quality. Careful transportation ensures that cotton reaches the buyer in good condition.

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