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Monday, June 21, 1999

Pvt sector cotton players roped into international body' advisory panel 

Sharad Mistry  
Mumbai: Private sector players in the cotton industry of some 15 nations, including India, have been roped in for the first time by the Washington-based International Cotton Advisory Committee (ICAC).

East India Cotton Association (EICA) president Suresh Kotak has been appointed by the government to represent the Indian cotton industry at the ICAC's Private Sector Advisory Panel (PSAP).

ICAC is the apex inter-governmental organisation of the world cotton industry having representation of around 43 cotton producing and consuming countries and that of other international organisations like World Bank and Food and Agricultural Organisation (FAO) of the USA.

At its 57th Plenary Meeting held in Washington on June 8, the ICAC agreed to `refine and adopt' the recommendations of the Working Group whereafter, the Standing Committee established the Private Sector Advisory Panel (PSAP).Included in the list of PSAP are: United States of America, the United Kingdom, India, China, Australia, Turkey, Germany, Italy,France, South Africa, Zimbabwe, Taiwan and couple of Latin American Countries. The PSAP has been set up to utilise the private sector's expertise in improving the declining share of cotton in the global fibres market which has been witnessing aggressive dominance of manmade fibres.

Among others, the PSAP has recommended that it is incumbent on the various governments to embark upon an education programme for cotton producers and cooperatives regarding the use of modern risk management alternatives.The PSAP recommendation said: Limited government resources and trade agreements are resulting in minimal government assistance for cotton producers. This has severely impacted the developing nations causing significant reductions in production which in turn has adversely impacted the economies of the producing region of these nations.

Further, the current world economy has seen a reduction in cotton consumption which in the face of increased cotton stocks and an overcapacity of synthetic fibre consumption hasresulted in lower prices and a loss of markets to synthetic fibres. Further, there is reason to believe that the various governments of the cotton producing nations will continue to reduce their financial support for the agricultural sectors.

The focus of the ICAC must enlarge to address the challenges presented to the world cotton industry in the new millennim. A strategic plan must be adopted to address the following issues:

--search and promotion; infrastructure development; risk management education; education and trade practice; producing quality cotton for textile mills and end user and address environmental concerns.

Says the PSAP recommendation: Continue on an expanded basis the World Research Conferences.The success of 1994 Brisbane and 1998 Athens Conferences should be built upon for the forthcoming 2002 confrence in South Africa.

A common fund for cotton promotion needs to be set up for the developing cotton nations. These countries hold hte best potential forthe increased use of cotton.What is lacking is demand which can be created by developing promotin programmes suited to limited resouirces and media services in these countries. The growth in demand can and should encourage the establishment of textile manufacturers within these countries or regions with self sufficiency through the domestic consumption of cotton being the desired end of each cotton producing nation.

It is essential that such an effort begin with the understanding that this would be a realistic first step and not an attempt to imitate the developed countries, particularly the United States who has over the last 40 years developed sophisticated savertising and promotion programs thorough Cotton Incorporated and Cotton Council International. The PSAP recommended that cotton producing nations, through the expanded educational role of ICAC must collaborate with the world textile industry and coton trade on the development of new seed varieties, cultivation, harvesting, ginning methods and bale size and packaging to assurethe delivery of a diverse variety of acceptable qualities which will allow the mills to efficiently manufacture quality yarns and textile products.

Lastly, the PSAP called for the utilisation of the common fund to the developemnt of a modern infrastructure in each cotton producing nation to enable cotton to move with the cost efficiencies from the field to the consuming textile mills while protecting the interests of the producer and maintaining the integrity of cotton.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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