The Fourth Meeting of Stakeholders was held under the aegis of Committee on Cotton Production and Consumption for the Cotton Season 2021-2022 on 01.07.2022 under the Chairpersonship of Smt. Roop Rashi, Textile Commissioner, through Video Conferencing. The office of the Textile Commissioner has issued the minutes of the Fourth Meeting of Stakeholders. These minutes are presented below:
Minutes Of The Fourth Meeting of Stakeholders
Held on 01.07.2022 for The Cotton
Season 2021-2022 Through Video Conferencing.
1. The Fourth Meeting of Stakeholders for the Cotton Season 2021-2022 was held under the Chairpersonship of Smt. Roop Rashi, Textile Commissioner on 01.07.2022 (Friday) at 3.00 PM through video conferencing.
1.1 The Chairperson informed that Stakeholders are meeting fourth time in the current cotton season 2021-22.
1.2 Thereafter, the Chairperson requested the Member Secretary to take up the items in the agenda for discussion.
2. AGENDA ITEM NO. l
CONFIRMATION OF MINUTES OF THE THIRD MEETING OF STAKEHOLDERS FOR THE COTTON SEASON 2021-2022 HELD ON 23.05.2022.
2.1 It was informed that no comments were received from any of the members. Therefore, the Stakeholders confirmed the Minutes of the Meeting held on 23.05.2022.
3. AGENDA ITEM NO.2
3.1 KAPAS PRICE:
The Member Secretary requested the Chairman-cum-Managing Director (CMD), the Cotton Corporation of India Ltd. (CCI) to brief about the Kapas Prices, Minimum Support Price (MSP) and Commercial operations undertaken for the current cotton season 2021-2022.
The CMD, CCI made a power-point presentation covering kapas price trend, procurement of cotton by CCI. He informed that since beginning of current cotton season, average kapas prices of FAQ grade kapas were ruling about MSP level in all the cotton growing States due to increase in demand of cotton in domestic and international market. He added that average prices of J-34, H-4/MECH-1, S-4/S-6, Bunny Brahma and DCH-32 have been higher by 49%, 50%, 56%, 62% and 74% respectively, in comparison to the previous year.
He informed that as on 30.06.2022, progressive kapas arrivals for 2021-22 season are reported at 300.68 lakh bales, which are around 12% lower than the arrivals (i.e., 342.76 lakh bales) during the same period last year. He further informed that since beginning of the season seed cotton prices for FAQ grade are ruling much above MSP level and farmers are getting higher price than the MSP rates due to market forces itself.
As a result, farmers do not require market intervention by CCI and procurement under MSP operations is so far Nil. He added that CCI procured 12,000 bales under viable Commercial operations.
3.2 LINT COTTON PRICE:
The Member Secretary requested the President, Cotton Association of India (CAI) to brief the Stakeholders about the lint cotton prices prevailing in the current cotton season 2021-2022.
The President, CAI informed that the lint cotton prices during cotton season 2021-2022 have remained higher than those of the cotton season 2020-2021. He added that the monthly average prices during the period from 01.10.2021 to 30.06.2022 in case of average prices of J-34, H-4/MECH-1, S-4/S-6, Bunny Brahma and DCH-32 have been higher by 77%, 105%, 79%, 82% and 63% respectively vis-a-vis those prevailing during the same period last year.
He further informed that the increase in seasonal average cotton prices from 01.10.2021 to 30.06.2022 compared to the corresponding average prices for the said months during 2020-2021 cotton season was within the range of 63% to 105%.
The President, CAI informed that the domestic cotton prices have started softening from its peak level after 20.05.2022 in tandem with international market and spot price of S-6 cotton is now hovering in the range of Rs. 92,000 per candy to Rs. 94,000 per candy.
He also said that NY ICE Futures price for July contract has reduced by around 40 cents per pound from 145 cents per pound to 103 cents per pound.
The Member Secretary informed the Stakeholders about the International Cotton scenario as provided in the agenda circulated to all the Stakeholders.
4. AGENDA ITEM NO.3
COTTON SEASON 2021-2022
(i) INPUTS ON REVISION OF STATE-WISE AREA UNDER COTTON AND COTTON PRODUCTION FOR THE CURRENT COTTON SEASON 2021-2022 TO COCPC
(a) RECOMMENDATION FOR REVISION OF STATE-WISE AREA UNDER COTTON CULTIVATION FOR THE CURRENT COTTON SEASON 2021-2022 TO COCPC
As per the information on third advance estimate made available by the Director, Directorate of Cotton Development (DCD), Ministry of Agriculture and Farmers’ Welfare, Government of India, there is no change in the state wise area under cotton cultivation for the cotton season 2021-22. The State wise break up of area is as detailed below:
Representative of Government of Tamil Nadu said that as per fourth advance estimate, area under cotton and production in the State of Tamil Nadu has been estimated at 1.48 lakh hectares and 3.60 lakh bales respectively. In this regard, the Director, DCD requested representative of Government of Tamil Nadu to send the latest details on area and production to DCD and Directorate of Economics and Statistics (DES), Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW) for necessary action.
(b) AGENCY-WISE INPUT ON ESTIMATION OF STATE-WISE COTTON PRODUCTION FOR THE CURRENT COTTON SEASON 2021-2022 TO COCPC
The Member Secretary requested agencies to place their production estimate before the Stakeholders. Accordingly, the inputs on estimation of State-wise Cotton production for the Cotton Season 2021-2022 furnished by various agencies viz., Directorate of Cotton Development (DCD), Cotton Association of India (CAI), Confederation of Indian Textile Industry (CITI), the Cotton Corporation of India Ltd (CCI), Indian Cotton Federation (ICF) and Indian Cotton Association Ltd. (ICAL) are as under:
The State-wise production estimates are inclusive of loose Cotton.
The Director, DCD informed that the cotton production estimate for the State of Telangana has been reconfirmed and as per third advance estimate, the cotton production for the State of Telangana has been estimated at 66.45 lakh bales.
The Stakeholders noted that there is wide variation in cotton production estimate for the State of Telangana and Tamil Nadu between trade estimates (viz. Cotton Association of India, Confederation of Indian Textile Industry and the Cotton Corporation of India Ltd.,) and official production estimate released by DCD. However, all India production estimate of all the agencies is in the range of 310.50 lakh bales to 317.00 lakh bales and thus there is marginal variation in the all India production estimate between the agencies.
The stakeholders from the trade and industry said that there is common practice that cotton grown in one State is transported and sold in other state. The trade estimates used to take into account actual arrivals of cotton and cotton pressing reports in a particular state while cotton production estimates by DCD are formulated on the basis of crop cutting experiment results.
After deliberation, it was decided that the production estimate for the State of Telangana and Tamil Nadu by DCD needs further reconfirmation. It was decided that Director, DCD may collect district-wise production of cotton as well as Mandi-wise tax collected by the APMC in the State of Telangana and Tamil Nadu and the same be sent to CCI for cross-checking. A report in this regard be placed in the next meeting of Stakeholders.
(ii) INPUTS ON IMPORT, EXPORT AND CONSUMPTION
OF COTTON FOR COTTON SEASON 2021-2022 TO COCPC
As per data extracted from the Directorate General of Commercial Intelligence and Statistics (DGCI&S), Kolkata Portal, the data on import of cotton from October, 2021 to April, 2022 is 4.86 lakh bales as against 5.69 lakh bales imported during the same period last year. Similarly, the data on export of cotton from October, 2021 to April, 2022 is 38.29 lakh bales as against 54.83 lakh bales exported during the same period last year.
Economics & Statistics Branch of Office of the Textile Commissioner furnished the provisional consumption data for the eight months i.e., October, 2021 to May, 2022 for Non-SSI and SSI units as 204.55 lakh bales and 16.67 lakh bales respectively as against 191.55 lakh bales and 15.62 lakh bales consumed during the same period last year.
The inputs on estimation of import, export and consumption of cotton furnished by various agencies for the cotton season 2021-22 are given below:
The Stakeholders from the trade and industry namely CAI, CITI and CCI opined that the trend of consumption of cotton witnessed in initial eight months of current cotton season 2021-22 would not be linear in the remainder months of season due to the fact that many of the mills are diverting to viscose and polyester fibre. It was opined that it would not be now viable for the conversion mills to operate with full capacity utilization.
The Stakeholders from the trade and industry opined that extension in shipment period of duty-free import of cotton into India beyond 30.09.2022 may ease out the stress for augmenting supply.
5. AGENDA ITEM NO.4
DISCUSSION ON STATUS OF PRODUCTION OF
EXTRA LONG STAPLE COTTON AND ISSUES THEREOF
The Member Secretary requested that roadmap for augmenting production of Extra Long Staple Cotton in the country through contract farming may be deliberated. Since none of the Stakeholders came forward, it was decided to defer the agenda to the next meeting.
6. AGENDA ITEM NO.5
DISCUSSION ON STATUS OF PRODUCTION OF
NATURALLY COLOURED COTTON AND ISSUES THEREOF
The Director, CICR, Nagpur informed that a Naturally coloured, brown linted G.
Arboreum (Desi Cotton) variety developed by ICAR-CICR, Nagpur has been identified for release in South zone states of Telangana, Andhra Pradesh, Karnataka and Tamil Nadu under rainfed conditions
The Member Secretary requested that ways and means to enhance production of Naturally Coloured Cotton may be explored. Since none of the Stakeholders came forward, it was decided to defer the agenda to the next meeting.
7. AGENDA ITEM NO. 6
DISCUSSION ON STATUS OF ORGANIC COTTON AND ISSUES THEREOF
Since none of the Stakeholders came forward to be Member Secretary of the Sub-Group on Organic Cotton, it was decided to defer the matter on selection of Member Secretary to the next meeting. The Stakeholders deliberated on proposal of APEDA on setting up of an integrated system of certification covering production of organic fiber, including raw cotton under the ambit of competent organization under the Ministry of Agriculture and Farmers’ Welfare and the remaining supply chain of organic fiber/fabric/apparel under the Ministry of Textiles.
After detailed deliberation, it was decided to constitute a Sub-Committee under the Chairpersonship of the Secretary, Textiles Committee including representatives from CIRCOT and TEXPROCIL as its members to work out modalities on proposal of APEDA after due consultations and meeting with various Stakeholders and submit report within 15 days.
8. AGENDA ITEM NO. 7
DISCUSSION ON STATUS OF AVAILABILITY OF
CERTIFIED/QUALITY SEEDS OF COTTON AND ISSUES THEREOF.
The Member Secretary requested the representative of Seeds Division of Ministry of Agriculture and Farmers Welfare, Government of India to intimate action on convening the meeting by the Seeds Division with seed manufacturers, certification agencies and textile industry associations. Since none was present, it was decided to defer the agenda to the next meeting.
It was informed in the previous meeting of Stakeholders held on 23.05.2022 that surplus quantity of cotton seed for kharif season 2022 is available in India.
9. AGENDA ITEM NO. 8
DISCUSSION ON STATUS OF MODERNIZATION
OF COTTON CULTIVATION AND ISSUES THEREOF
It was informed that the proposal has been sent by the Ministry of Textiles, New Delhi to the Ministry of Agriculture & Farmers’ Welfare, Government of India vide letter No. 11/17/2022-Fibre-I dated 10.06.2022 for necessary implementation.
10. AGENDA ITEM NO. 9
DISCUSSION ON STATUS OF
MODERNIZATION OF GINNING & PRESSING FACTORIES
The Member Secretary requested the Secretary, Textiles Committee to present latest status of rating of Ginneries.
The Secretary, Textiles Committee informed that there is no change in status of rating of Ginneries as intimated in the Stakeholders meeting held on 23.05.2022.
With regard to suggestion of Dr. S. K. Shukla, Principal Scientist & Officer-in-Charge, Ginning Training Centre, ICAR-Central Institute for Research in Cotton Technology (CIRCOT) that supply of cottonseeds having uniform quality parameters for an area of about 50-80 Km, Shri H.K. Nanda, Director, Ministry of Textiles informed that the issue of enhancing productivity of cotton is under consideration in the Ministry of Agriculture & Farmers’ Welfare.
11. AGENDA ITEM NO. 10
DISCUSSION ON ISSUES RELATING TO
INCREASING PRODUCTIVITY OF COTTON
Suggestions from the Stakeholders invited for programmes to be implemented to increase productivity of cotton. Shri H.K. Nanda, Director, Ministry of Textiles informed that the issue of enhancing productivity of cotton is under consideration in the Ministry of Agriculture & Farmers’ Welfare. It was desired that the representative of Ministry of Agriculture & Farmer’s Welfare may apprise the progress in the next meeting.
12. AGENDA ITEM NO. 11
ANY OTHER MATTER
As there was no additional matter for discussion, the meeting ended with a vote of thanks to the Chair and all the participating Stakeholders.