TECHNOLOGY MISSION ON COTTON

1. K.R.K. IYER Consultant (TMC) VN_HYD_28.11.05 TECHNOLOGY MISSIONON COTTON

2. Introduction • Textile industry to confront challenges in WTO regime • Revolution in cotton production and productivity needed • Good quality cotton at reasonable cost to be made available to the mills • Grower too should realize good price for his produce

3. Indian Cotton Scenario • India has the largest area in the world under cotton (89.2 lakh hectares* in 2004-05) • The third largest producer of cotton in the world after China and USA (243 lakh bales*in 2004-05) • Productivity had remained as one of the lowest in the world around 300 kg/ha till 2002-03. • In 2004-05 productivity has increased to over 463 kg/ha. • Only one-third of cotton area is under irrigation *as per CAB

4. SCENARIO contd… • Short unspinnabledesi cottons to extra-long (40 mm) Suvin, spinnable to 120s count are grown in the country. • India is the only country cultivating cottons of all stapleclasses and belong to all four cultivable species. • Cotton provides livelihood to 60 million people engaged in farming, industry and trade related to cotton and cotton products. • Textile exports account for 30% of India’s total exports. • Cotton textiles alone make up 20% of the exports.

5. Area under Cotton in Major Countries (2004-05) Total Area: 35.76 mHa Source: ICAC

6. Cotton Production in Major Countries (2004-05) Total Production: 26.20 mt. Source: ICAC

7. Cotton Productivity in Major Countries (2004-05) Productivity in Kg/ ha Source: ICAC Source: ICAC

8. Cottons cover a Wide Quality Range that has Promoted Mixing • We are proud of the wide spread in cotton quality such as no other country has. • But the rampant mixing of varieties nullifies the advantage. • Some examples of mixing: • The so-called J.34 is the mixture of over 10 different varieties. • Long stapled S.6 of Gujarat is mixed with medium stapled S.8 and S.10.

9. MIXING contd… • Long stapled cottons like LK.861, JKHy.1, MECH.1, Savita, etc. get mixed and are sold as Bunny/Brahma in A.P. • Superior medium DHH.11 is mixed with extra-long DCH.32 in Karntaka. • Average quality differs from bale to bale and from lot to lot. • Mills are forced to carry out time-consuming and complex bale management exercises to maintainyarn uniformity. • Alternatively, mills resort to importing cotton from other countries.

10. Deficiencies in the Cotton Sector • Poor quality of seeds and pesticides • Poor productivity • High cost of cultivation • Multiplicity of cotton varieties leading to rampant mixing • Poor fibre attributes of most varieties • Rapid deterioration of fibre quality of hybrids with successive pickings.

11. DEFICIENCIES contd… • Tardy transfer of agricultural technologies to the farmers’ fields • Poor infrastructure at market yards • High Trash content in cotton (5%-8%) despite being handpicked from the farm • Wide range of contaminants in cotton numbering over 20 types.

12. Technology Mission on Cotton(TMC) • In order to find solution to many of the problems in cotton production and processing sectors and to place the cotton economy on a sound footing, the Technology Mission on Cotton (TMC) was launched in February 2000.

13. The Technology Mission on Cotton (TMC) has four component Mini Missions:

14. Objectives • Firstly, to augmentthe income of cotton growers and to ensure availability of quality cotton to industry in required quantities through Mini Missions I & II by: • increasing the productivity of cotton; • reducing the cost of cultivation and • improving fibre attributes particularly staple length, micronaire and strength

15. OBJECTIVES contd… • Secondly, to reduce contaminationin cotton through Mini Missions III & IV by: • improving infrastructureof cotton agricultural markets; and • modernizing the Ginning & Pressing Factories.

16. Mini Mission - III • Market yards are places where maximum contamination of cotton occurs. • The sources of contamination should be plugged so that cotton remains clean. • Mini Mission – III intends to achieve this by providing necessary civil infrastructure and by insisting on a package of management practices.

17. Special Facilities at Markets • Grading Laboratory • For testing fibre quality using HVI/ MVI (large markets) • Trash content (All markets) • Ginning percentage (All markets) • Input supply shops to provide reasonably priced good quality farm inputs like • Seeds • Pesticides • Fertilizers • Bio-agents

18. Farmers’ Information Centre (FIC) • Equipped with • Computer with printer • Internet Access • Large Digital Display Board • Kiosk with software package in local languages

19. FIC contd… • FIC to provide information on …. • New farm technologies • Seeds suitable for the agro-climatic zone • Sourcing good quality seeds • Information on good quality inputs – fertilizers, pesticides, bio-agents, etc. • Guidance in farm operations • Prices prevailing in the market yard and neighboring market yards • Prices prevailing in other States for equivalent varieties • International prices • Advice on pest management

20. Assistance from TMC for Market Development • 60% of project cost provided by TMC, subject to ceilings - • For Improvement: Rs.90.00 lakh • For New Market: Rs.150.00 lakh • The remaining amount to be contributed by the concerned APMC/ State govt. • Target: 250 market yards during the 8-year period till 2006-07 .

21. Market Yards under Development with TMC Assistance (Till date)

22. Update on Mini Mission III • Development of 160 market yards already taken up by TMC. • Total project cost: Rs.299.71 crore • GoI share: Rs.152.12 crore • 95 market yards have reported completion of project work.

23. Status of Indian Ginning Industry • Over 3000 ginning factories exist, many with very few gins. • Only 902 are composite units; others send the ginned cotton elsewhere for baling thus exposing cotton to contamination. • Pre-cleaning is an exception, not the rule. Result : High trash levels • Ginning machines are old, inefficient and poorlymaintained. • Human handling is excessive at all stages, causing contamination.

24. STATUS OF INDIAN GINNING INDUSTRY contd… • Civil infrastructure is grossly inadequate – platforms, sheds, godowns are non-existent in may ginneries. • Contamination is severe. (24 types) • Trash content is high. (5% - 8%) • Gin fitters are untrained. • Fibre damage is common due to improper ginsettings; productivity too is very low. • India needs only 1000-1200 units of economically viable size (production: 8 bales/ hr.) by 2006-07.

25. Why Modernization ? • Ginners (and growers) should realize that bothimport and export of cotton are free from restrictions. • With current level of cotton production world-wide, Indian mills will prefer to buy importedcotton. • Unless quality of Indian cotton is raised tointernational levels, it will fail to perform in what has become a buyer’s market for cotton, both domestically and globally.

26. Assistance from Mini Mission IV for G & P Modernisation Proposed for Xth Plan • 25% of the cost of machines and infrastructure; Ceiling: Rs.20.00 lakh • 25% of the cost of a modern Bale Press; Ceiling: Rs.7.00 lakh • 25% of the cost of Grading Lab.; Ceiling: Rs.4.00 lakh

27. Update on Mini Mission IV • Modernization/ setting up of 616 G & P units is already approved by TMC. • 329 G & P units have reported completion of modernization work; Total Cost of 616 Projects: Rs. 813.10 crore TMC Share of 616 Projects: Rs. 142.13 crore

28. Progress of Mini Mission IV

29. Cleaner Cotton through Modernization of Ginneries • TMC has fixed norms for trash content ranging from 2.0% to 3.5% • Some ginneries have brought down trash level to less than 1% which is even better than TMC norms.

30. Components of an Ideal G & P Factory Essential Machines • 24 DR gins/ 3 saw gins/ 8 bales per hr. (single roller gins not permissible) • Mechanical or pneumatic conveyor systems at all stages of materials transfer • Pre-cleaner • Lint cleaner • Automatic bale press • Moisturizer at Gin house and Pala house • Fire fighting arrangements

31. COMPONENTS contd… Essential Infrastructure • Pucca cemented and raised platforms • Storage space for kapas, lint, bales and seeds • CC roads • Boundary wall/ fencing

32. Impact Assessment & Grading of Markets and G & P Units • To ensure that • Funds have been fruitfully spent, and • Cotton quality has perceptibly improved • To grade markets and G & P units on the basis of • Infrastructure built up, and • Quality of management • Assessment and grading methodology worked out by TMC Cell in consultation with cotton trade and industry • Assessment is performed independently by an expert from any of the TRAs, CIRCOT or the Textiles Committee.

33. Impact Assessment & Grading so far made

34. Impact of Modernization • Premium price for Bales Rs.300 - Rs.1000 per candy • Reputation, Easy marketing of bales & fast turnover • Better clientele & quick payment • Extended ginning season.

35. Ginners’ Benefits Contd… • Higher production speed • No hassles of managing labourers • Standard bale weight achievable • Additional profit from Bale classification with HVI machine.

36. Has TMC Delivered the Goods?- Mills’ views • Many mills are pleased with reduced trash in pressed bales from modernized ginneries. • However, most mills are still unhappy with persisting contamination. • Cotton is contaminated at the farm yard itself. • Manual removal of contaminants essential at ginnery.

37. A Vicious Circle of Reluctant Mills and Irresolute Ginners • Ginners lament over additional labour cost for removing contaminants. • Mills are reluctant to pay premium since they’re unsure of cotton purity. • Both groups are exasperated. • And contamination persists.

38. Ginner’s Commitment • Prevention of further contamination at the ginnery through - Principled use of conveyors - Rigorous implementation of BMPs • Extraction of already-existing contaminants by employing - Pickers at Kapas Platform - Pickers at Pala Halls

39. Mill’s Commitment • Assurance to pay more for clean cotton • Premium should cover the additional cost of employing contamination pickers.

40. Impediments in Progress 1: Lopsided Modernization • Gujarat & Maharashtra lead in modernization • MP and Punjab somewhat encouraging • Other States still lacking in awareness

41. Effect of Lopsided Modernization

42. Small Ginneries • TMC norms altered to permit small ginneries • Units with 12 DRs (3-4 bales/hr_ also now eligible for subsidy • Ceiling: Rs.15 lakh for general items (Rs. 7 lakh for modern bale press and Rs.4 lakh for HVI remain the same as for large units).

43. Impediments contd… 2: Non-compliance with Requirements • Bypassing cotton cleaning machines • Discarding conveyor systems & employing labourers instead • Non-adherence to BMPs • Poor bale packaging

44. Expectations from Textile Industry • Accept only bales processed in modernized ginneries • Insist on compulsory use of a) Automatic conveyors b) Precleaner & Lint Cleaner • Demand complete removal of contaminants at the ginnery • Be generous with premium for clean cotton

45. Conclusion With the successful implementation of programmes under TMC, India can nullify the deficiencies in the cotton sector and transform the country into a world leader in cotton in the years to come.

46. Thank You !