Latest reports emanating from the US seem to confirm the earlier forecast that the production of the extralong staple (ELS) US Pima cotton may register a sizable fall in 2000-01 owing to a decline in planted area.Currently, the fall in production is placed as high as 30 per cent. The US department of agriculture (USDA) estimates of planted Pima acreage is reported to be 2.02 lakh acres (approximately 0.80 lakh hectares) in 2000-01, a decline of 30 per cent from the previous year's 2.89 lakh acres (or about 1.14 lakh hectares).As for production, estimates by different agencies seem to vary. Early estimates appear to be in the range of 5.10 lakh to 5.75 lakh bales (170 kg each). In contrast, the 1999-2000 crop was the second largest on record at 8.63 lakh bales. Meanwhile, prices of both the old (1999-2000) and new (2000-01) Pima cotton are seen climbing steadily since the last several months. For instance, spot rates of Pima grade-2, which were around 82.50 cents during the third week of January this year have risen to 96.50 cents during the third week of July. Relative tightening of global ELS cotton supply is said to be driving the resurgence in the US Pima market as mills look to fill needs for more nearby deliveries.
Data released by USDA also indicate that exports of US Pima cotton during 1999-00 (ending July 31) were as high as 5.38 lakh bales (170 kg each) a 46 per cent increase over the 1998-99 exports of 3.69 lakh bales. The leading importers of US Pima cotton are reportedly Japan, Taiwan, Bangladesh, Indonesia, Pakistan and Italy.
Organic farming lures MP govt The state Government of Madhya Pradesh has identified organic farming as a major thrust area. As a first step in this regard, it is stated to have created a post of deputy director in the agriculture department to oversee the progress of organic farming. With the environmentalists becoming more vocal in highlighting the harmful effects due to use of several toxic chemicals, especially pesticides in agriculture, organic farming is gaining in importance.
In the case of cotton, there is said to be considerable demand for organic cotton, particularly from Europe and USA. About 6,000 farmers in Madhya Pradesh (MP) are reportedly cultivating organic cotton over 10,000 hectares.This initiative is said to be receiving encouragement from some of the private sector textile mills in the state.
A private certification agency appears to conduct test and provide certification about the nature of the crop being sold. Organic cotton reportedly commands a premium of 10 per cent to 15 per cent, in prices over conventional cotton in markets of the state. In order to create awareness among the farmers, a few non-Governmental organisations (NGOs) and the state agriculture department are said to be conducting seminars and symposia.
(Excerpted from Cotton Statistics and News of East India Cotton Association)
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.