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Boosting Extra-Long Staple (ELS) Cotton Production in India: A Five-Year Mission
Context:
Union Finance Minister Nirmala Sitharaman announced a five-year mission to enhance cotton production, particularly extra-long staple (ELS) cotton. The initiative aims to reduce import dependency, improve farmers’ income, and revive India’s traditional textile sector.
About Extra-Long Staple (ELS) Cotton
- Unique Characteristics
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- Staple length: More than 32.5 mm, with some varieties exceeding 45 mm.
- Superior fiber strength, better uniformity, and exceptional softness.
- Used in luxury textiles, high-performance fabrics, and fine count yarns.
- Global and Indian Context
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- Major global producers: USA, Egypt, Sudan, India, Peru, Israel.
- ELS production is expected to decline globally by 900,000 bales (2020–2025).
- In India, ELS cotton is grown in Karnataka, Tamil Nadu, Madhya Pradesh, Andhra Pradesh, Maharashtra, and Odisha.
- Key Indian ELS varieties: MCU-5, Suvin, DCH-32, TCH-213, SIMA HB-3, Sara-2, Phule-388.
India’s Import Dependency on ELS Cotton
- India requires ~9 lakh bales of ELS cotton annually but produces only ~4 lakh bales, leading to a heavy reliance on imports.
- Imports come primarily from the USA and Egypt.
- Demand for ELS cotton is expected to increase to 20 lakh bales by 2025.
- Import dependency exposes India’s textile industry to price volatility and trade uncertainties.
Impact of the Five-Year Mission
- Rejuvenating India’s textile sector by ensuring a steady domestic supply of premium cotton.
- Enhancing farmers’ income by providing better technology, agronomic support, and financial incentives.
- Reducing import dependency, making India’s textile industry more competitive in global markets.
- Encouraging research and development in high-yielding, pest-resistant ELS varieties.
Why Is This Decision Needed?
Declining Share in Global Textile Exports
- India’s textile and garment exports remain stagnant at $35 billion, while countries like Bangladesh and Vietnam have gained market share.
- Bangladesh, Vietnam, Poland, Germany, and France increased their export share in labor-intensive sectors by up to 2% (2015–2022).
- Competitor nations benefit from FTAs and Least Developed Country (LDC) status, which provide 10-15% duty concessions in Western markets.
Challenges in ELS Cotton Production
- Agronomic Issues
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- Long duration crop, requiring high labor input.
- Sensitive to waterlogging, leading to yield instability.
- Highly susceptible to pests, particularly bollworms and pink bollworms.
- Economic Constraints
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- Low yield per acre: ELS cotton yields 7-8 quintals per acre, whereas medium-staple varieties yield 10-12 quintals per acre.
- High production cost but low market price, making it less attractive to farmers.
- Competition from high-value crops such as sugarcane and horticultural crops.
- Policy and Market Barriers
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- Minimum Support Price (MSP) gap: Medium staple cotton MSP: ₹7,121 per quintal; Long staple MSP: ₹7,521 per quintal.
- Lack of market linkages, making it difficult for farmers to sell at premium prices.
- Declining yield trends and inadequate branding in global markets.
Thrust Areas for Improvement
- Expanding ELS Cotton Cultivation
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- Target: Increase ELS cotton area to 8–10 lakh hectares by 2025.
- Encourage farmers to adopt high-yielding hybrids and better agronomic practices.
- Technology Adoption and Dissemination
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- Introduce modern production techniques, including drip irrigation and pest-resistant cropping.
- Strengthen research collaboration with Israel, Australia, and CIS nations to improve fiber quality.
- Support mechanisation to reduce labor costs and enhance productivity.
- Varietal Improvement and Research
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- Develop new ELS cotton varieties that offer higher yield and resistance to pests.
- Introduce genetically improved seed varieties and explore options for GM cotton.
- Promote research in breeding programs for fiber quality improvement.
Way Forward
- Establish a Special Purpose Vehicle (SPV) for coordinated ELS cotton promotion.
- Strengthen global branding efforts to boost India’s share in the fine/superfine yarn market.
- Ensure better price realisation for farmers through improved MSP and direct procurement mechanisms.
