Financial Daily from THE HINDU group of publications
Wednesday, Jun 02, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Corporate - Outlook
Agri-Biz & Commodities - Cotton


Super Spinning cottons on to farmers directly

L.N. Revathy

Coimbatore , June 1

THE city-based Super Spinning Mills Ltd is all out to woo farmers to take to cotton cultivation.

The consuming unit's seriousness in encouraging farming groups to grow cotton is aimed at sourcing `clean' cotton from the domestic market, instead of relying on imports.

Concerned about the shrinking area under cotton in the State, the company made a decisive move last year by reassuring its support to the growers, both in pricing and buyback. The company identified about 1,120 acres in Salem district (for summer cotton cultivation) and 1,283 acres in Coimbatore district and 150 acres in Vellore district (for kharif crop).

The mill extended technical support and supplied seeds to the members covered under the Integrated Cotton Cultivation programme. This support gave cushion for those growers, who had intended to give up cotton cultivation because of the prolonged drought and poor returns on the produce.

The entry of Super Spinning in agriculture extension efforts appears to have enthused growers, who have now joined hands to supply cotton direct to the mill, instead of depending on the middlemen/trader to market the produce. ``It is a win-win situation for both. We are able to source `clean' cotton (less trash content and pertaining to a specified variety) and the grower, a better return,'' says Mr K.R. Seethapathy, Chief Operating Officer, Super Spinning Mills Ltd.

A study made by the mill showed that the trash content was halved to 2 per cent and the contamination, negligible at one gm per bale as against 18 gm/bale in the cotton sourced from the market. The farmer was able to get a premium of Rs 200 to Rs 300/quintal, and the payment was made within three days of kapas procurement.

Within a span of two years, the cotton growers' membership with the company has swelled to 1,795. The company is today sourcing cotton from these farmers, whose total land holdings is expected to touch a high of 6,000 acres.

Speaking to Business Line, Mr Seethapathy said the mill's requirement was much more than the area covered at present. "We have a long way to go. We will have to source our requirement from four times the area covered at the moment. Our ultimate aim is to reach this level, hopefully by 2006."

Besides MCU 5, Surabhi and the company's own hybrid Sara 2, Super Spinning is also contemplating to encourage farmers raise short staple varieties, the COO said and indicated that they would, with the help of the Central Institute of Cotton Research (CICR), Coimbatore, identify pockets for organic cultivation of cotton.

``We want to try Bt cotton (from Rasi Seeds) in 500 to 600 acres,'' Mr Seethapathy said.

On seed availability, he said that the position was comfortable at the moment.

To a query on pricing, Mr Seethpathy conceded that pricing was a major issue. ``There are so many indices. The traders can change it everyday. We are trying to find an ideal solution to this ticklish issue''.

According to him, this concept of extension support to the farming community would be advantageous for the industry only in the long-term. ``The Government could support the farmers by extending subsidy on seed and other inputs, at least for the time being. This support is basically to achieve the common goal - enhance productivity and ensure better returns.''

More Stories on : Outlook | Cotton | Tamil Nadu

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Valecha Engg bags Rs 90-cr NHAI order


IOC draws up aggressive sales strategy
Jay Shree Tea declares lockout at two estates
Shasun to stick to urgent export orders due to port strike
Jain Irrigation eyes Africa for projects
MERC ruling — Tata Power asked to refund Rs 322 cr to Reliance Energy
Cos raise $1,756 m in April via ECB route
Kerala PCB award for Hind Lever
SRF gets US patent for difluoromethane
Hind Lever Chem, Tata Chem merge
Jubilant Organosys acquires two European drug cos
Arvind plans Rs 150-cr push to garment export
Satnam Overseas plans rice mill, processing unit in UK
IICT set to attract research projects from MNCs
FLAG signs dual landing deal with Omantel
For supply and marketing in Canada — Orchid extends deal with Apotex
KEC International sees Rs 800-cr turnover
Super Spinning cottons on to farmers directly
Himalaya expects 30% growth post-expansion
Bajaj Auto sales down 7.8 pc
TVS Motor sales down in May
Maruti sales up 13 pc in May
Hero Honda sales rise 30% in May
BDL has new Finance Director



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line