G Shivram Prasad, chairman of All India Cottonseed Crushers' Association (AICOSCA) at the 38th annual general meeting said that the export of cotton seed extraction showed some improvement this year although the quantity exported remained meagre. In the first seven months of the current year, only 14,023 tonnes of cottonseed extraction was exported as compared to 8,164 tonnes during the corresponding period last year. "It is high time the government treated scientific cotton processing industry on par with the textile industry and allowed imports of cottonseed to boost the export of cottonseedextraction," he added.

Cottonseed extraction continued with a burden of negative return during the current year also. Even in Andhra Pradesh the advantage was lost this year. Manufacturers incurred losses to the tune of Rs 605 per tonne while processing cottonseed in a scientific manner as compared to a profit of Rs 183 per tonne when processed traditionally.

In Andhra Pradesh, the loss incurred was about Rs 370 per tonne as compared to a profit of Rs 112 per tonne in the previous year. The above cost analysis proved beyond doubt the need for providing some fiscal incentive to change over from traditional to scientific processing of cotton seed to prevent precious loss of cottonseed oil as well as cottonseed extraction with high bypass protein contents.

Prasad said that financial crisis in the south-asian countries and heavy slump in international prices of oilseeds extraction affected exports severely. Moreover, the cyclone took a heavy toll of export cargo lying in Kandla, Bedi and other ports inGujarat. The Maharashtra government's decision to withdraw provision of set-off provided under the state sales tax rules has further created hardships for the industry.

Prasad recalled that there were substantial losses in cotton production due to unseasonal rains and severe pest attacks especially in Andhra Pradesh, Maharashtra and Karnataka. In addition to this there has been the loss of cotton farmers. The causes of cotton farmers' deaths were mainly due to heavy indebtedness and indiscriminate use of costly pesticides. He called for an integrated pest management and making available cheap and timely credit to prevent such tragedies.

MB Lal, chairman and managing director of the Cotton Corporation of India said that the share of cottonseed oil can be increased to at least one-and-a-half times even with the existing production by resortint to better processing with the help of solvent extraction. There has been a great scope for improvement of the cottonseed oil by improving seed oil percentage of thecotton varieties.

Lal stressed the need for breeding programme for improvement of seed oil percentage of Indian cotton and added that with the higher production of better quality cotton not only the fibre but also the edible oil can be improved,