Considering the need for continuous improvement of cotton production in Andhra Pradesh (AP), the third largest cotton producing state that accounts for 15% of Indias total production, CII urged the government to continue its pressure on Monsanto, the major supplier of genetically-modified crop seeds, for further reduction of Bt cotton seed prices. The government must also check the spread of spurious seeds. The CII study expects cotton production in the state to grow at a compound average growth rate of around 7%, with the acreage for cotton production increasing and the farmers shifting from cash crops like chilli and tobacco to cotton. The state is expected to adopt efficient ginning methodology and its spindlage is likely to jump four-fold to touch 10 million spindles by 2015, estimates the study.
The study reiterates that the states textile sector is expected to be an $8 billion industry by 2015, and much of the growth will have to come from large scale value addition through weaving, processing and garmenting. Hence, CII urged the government to provide sops for the manufacture of technical textiles, encourage setting up of more auto-looms and facilitate setting up of processing units on coastal belts where there is no water scarcity.
To facilitate the development of a large scale integrated textile industry, the CII study recommends the government establish a 2,500 acre textile city.
The study estimates that by 2015, weaving in AP will increase over 5 times to touch 4,139 million meter; cloth processing, a major thrust area, to grow almost 100 times to touch around 1,300 million meter and garment export will grow 40 times to 600 million pieces. The study sees great potential for the weaving sector, which is expected to increase over five times to touch around 4,200 million meter.
Though AP produces about 15% of the cotton in the country, only 1% of the entire weaving is done here. This reflects under-utilisation of cotton production ownership to inadequate weaving capacity of the state. The weaving facility will jump in proportion to the use of air jet looms, power looms and hand looms.