![]() Financial Daily from THE HINDU group of publications Saturday, Oct 19, 2002 |
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Agri-Biz & Commodities
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Cotton Rain-related weather hits boll formation Contract cotton farming shows signs of lower yield G. Gurumurthy
The first yield of cotton ready for harvest from the contracted farms in Tamil Nadu.
COIMBATORE, Oct. 18 IT is good news for cotton growers that the maiden pick of kapas cotton from Tamil Nadu's first-ever contract cotton farming promoted in Coimbatore district this year is ready to hit the market. But the not-so-good-news is that the cotton farms raised in two of the eight cotton villages that signed up for contract cultivation face a possible drop in yield on account of lack of rains initially and untimely showers later preventing sufficient boll formation. The two villages Nalligoundempalayam and Vadakkipalayam in the Pollachi block went for early sowing in June-July last of long stable `bunny' (NCS) and medium-long stable RCH varieties in about 300 acres. They are now ready with first harvest of burst bolls. However, the promoters of the contract cotton cultivation, Appachi Cotton Company (ACC) and their farm service providers, Prime Bio Products (India) Ltd maintain that the rain-related setback suffered by the plants in the early stages may impact their yield potential but they feel that it is too early to hazard a guess on the full yield potential of the crop at this stage as the plants have another 45-50 days more to complete its yield cycle. But they say that the cotton crop raised in another 400 acres of contract farms in six other villages in the Kinathukadavu block in the district are progressing well. Even in these two villages, hopes have not been lost as the cotton crop is poised to turn around in view of the sunny weather during the past week. The weather is expected to aid the boll retention/new boll setting. ``There have been reports in these villages of drop in yield from the cotton raised as there has been practically no rains for nearly 58 days after the initial showers in August that affected boll setting. The last rains experienced 10 days ago too have proved a spoiler to the plants that faced with shedding of bolls due to sudden drop in temperature,'' said Mr Mani Chinnasamy, Managing Partner of ACC. But he is confident that though the crop under the contract farming has suffered the rain-related setback, the plants will recover in later stages. At present the cotton crop is 110 days old and the full crop cycle period for these varieties is 160 days. Initially, the organisers of contract farming and agencies involved had estimated the per acre yield around 8 quintals but now they have downwardly revised it to be around 5-6 quintals for these two villages that opted for the early sowing. ``Our crop assessment made last month indicated the yield to be in 5.5-6 quintals but in the light of the last week showers this may undergo some changes,'' said Mr Manivannan, Head-Production and Planning of Prime Bio Products (India) Ltd , the farm service providers for the contract cotton farming. The cost-benefit ratio of the contract cultivation for the two villages that may face yield loss will still look advantageous, according to the project promoters, for the growers as the boll formations left in the plants would be good enough to get them minimum three quintals and beyond. With the current market prices of kapas being sold at Rs 2,200 plus and the total investments made on the crop through the bank finance pegged at Rs 6,000 per acre, the income from cotton harvested will see them through, sufficient to manage their repayment of loan and possibly some surplus amount in the hand. The ACC's contract cotton farming model has stirred up interest in the cotton trade and the local cotton textile industry to the extent of its being a role model for future promotion of contract cotton cultivation in the State in the event of the company succeeding in its efforts. Besides bringing in various intermediaries such as the banks, crop insurers, farm service agencies and seed companies behind the model contract farming, ACC has also ensured market outlet for the cotton produced from these farms by offering realistic prices and opting to procure the kapas at the farmgates. The contract, however, is an open-ended contract one and allows growers an alternative to sell their produce outside in the event of any disagreement on ACC's price offer.
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