Financial Daily from THE HINDU group of publications
Tuesday, Nov 30, 2004
Financial Daily from THE HINDU group of publications Tuesday, Nov 30, 2004 |
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Agri-Biz & Commodities
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Cotton Vaghela opposes developed nations' subsidy for cotton Our Bureau
Mumbai Nov. 29 A severe criticism of the high levels of financial support extended by developed economies to their farm sector became the common refrain of speakers at the inaugural session of the 5-day plenary meeting of the International Cotton Advisory Committee (ICAC) that began here today. The theme of the meeting is `Enhancing cotton competitiveness'. India is opposed to heavy subsidies given by some developed economies for production and export of cotton that depress prices and hurt growers in developing countries, Mr Shankersinh Vaghela, Union Minister for Textiles, said. He was addressing over 600 delegates from different parts of the world, including producers, consumers, traders, researchers and international organisations. Although India had the world's largest area under cotton cultivation (90 lakh hectares), the yield here was as low as 400 kg per hectare because of poor irrigation facilities, he pointed out, adding that research was required to develop high yielding varieties that use less water. Bt Cotton— a genetically modified variety— has been allowed for cultivation in India in some States. Area cultivated to Bt Cotton would increase, the Minister forecast and remarked that bio-friendly and eco-friendly varieties were necessary. Directing the user industry (cotton textile mills) to be more proactive, he said the Government encouraged integrated cotton cultivation and industry participation therein. Earlier, Mr Vilasrao Deshmukh, Chief Minister of Maharashtra, referring to falling cotton prices this season said as the Indian market was integrating with the global market, world prices affected the domestic market. "Subsidies hurt growers in developing countries; so, it is time to discuss the issue and find a solution," he said. In his keynote address, the Deputy Chairman of Planning Commission, Dr Montek Singh Ahluwalia, while talking about the country's growth potential asserted that for low-income countries such as India, higher incomes would mean higher growth for the textiles sector. Suggesting that economic reforms have brought about a substantial change in the textile industry in recent years, he said withdrawal of restrictive agreements would make world trade more fair and equitable, and open up more opportunities. Dr Ahluwalia underlined the need to need to make complementary changes in agriculture (in terms of removal of subsidies) even as the industry was undergoing changes following liberalisation. "Growth in irrigation facilities will become a major Government focus in coming years to help raise farm yields," he asserted, adding that public-private partnership for infrastructure development was the way forward. Mr Wajahat Habibullah, Textile Secretary, chaired the inaugural session in which Mr Terry Townsend, Executive Director of ICAC, presented the annual report. Over the next four days, the delegates are scheduled to discuss diverse topics such as price outlook for cotton, quality issues, problems of small holders, agronomic practices, risk management, biotechnology, demand enhancement and so on.
More Stories on : Cotton | Agricultural Policy
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