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THE COTTON SECTOR is always in the news, though often for wrong reasons. The reported suicide of cotton growers in Maharashtra and elsewhere has once again highlighted the need for a serious rethink on the vexatious issues confronting this important commercial crop on which the livelihood of millions is dependent. Despite having the world's largest area under cotton (close to 90 lakh hectares) India ranks only third in production because of the abysmally low yield of about 300 kg per hectare against the global average of 550 kg. Compounding the problem of high production cost is the poor quality of Indian cotton, in terms of varietal purity and trash content. Rising domestic consumption unmatched by indigenous output has led to a surge in imports. With glut in global cotton supplies and prices ruling at attractively low levels the last two years, India has become a lucrative market for global suppliers. Annual imports in the last two years have zoomed to some 22 lakh bales equivalent to about 10 per cent of the domestic output.

Cotton growers here are complaining, with some justification, about the unremunerative prices and competition from cheap imports. The Technology Mission on Cotton (TMC; Mini-mission III and IV) has done some good work in strengthening the marketing infrastructure and improving quality at the processing stage; but the problems of the sector go deeper. Activities of Mini-missions I and II, which have to manage production planning and pre-harvest practices, have been far from satisfactory. Input management — including a sound delivery system and quality assurance — needs focussed attention. Even a relatively simple initiative like denotifying a majority of the 100 odd varieties that compromise varietal purity has not been taken so far. Obviously, the TMC — in particular Mini-missions I and II under the Agriculture Ministry — has its job cut out. It is in this context that the Agriculture Minister, Mr Ajit Singh's reply to a calling attention motion in the Rajya Sabha should be seen. Responding to the situation arising out of suicide by cotton growers in Maharashtra and elsewhere, Mr Ajit Singh ruled out the possibility of a hike in import duty on cotton from the present 10 per cent on the ground that global cotton output this year was low and hence no increase in duty was warranted.

The Minister is right, but only to a limited extent. Global cotton production in 2002-03 is forecast at 19.2 million tonnes, down from 21.4 m.t. last year. But one can hardly ignore the record opening stock of 10.2 m.t. Also, global cotton output in 1998-99 and 2000-01 ranged between 18.6 m.t. and 19.3 m.t. In any case cotton imports necessary for export production are permitted duty-free. Therefore, the demand for a duty hike on `commercial imports for stock and sale' may not after all be unjustified. Quite apart from a review of the Customs duty, it is crucial that the Agriculture Ministry strengthen the activities in the technology missions. There are several non-price and non-trade initiatives the Centre together with the State governments can take. After making cotton a fully market-driven commodity, China has emerged a significant player in the global cotton sector. India has lessons to learn.

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