COIMBATORE: The South India Cotton Association has appealed to the Commission for Agricultural Costs and Prices of the Union Government to target cotton production of 450 lakh bales in the country by 2012-2013.

In a memorandum submitted to the commission, secretary of the association K.N. Viswanathan said yields should be increased by educating farmers on better cultivation practices.

They should be provided with the required infrastructure in production and marketing. The cotton market yards should be active and new technologies should be used for better price realisations.

The 40 per cent increase in Minimum Support Price (MSP) by the Government in 2008-2009 led to huge procurements by Government agencies.

This affected the established system of cotton trading in the country. During the current season, speculative investments in cotton pushed up the prices, which was detrimental to the domestic textile industry. The country should have a healthy system for cotton business, he said.

Mr. Viswanathan pointed out that this year, though yields had increased, there was no significant increase in the cotton acreage.

In November 2009, 30 lakh bales were registered for exports though the entire quantity might not be shipped.

The cotton lint prices had increased from Rs. 22,500 a candy to Rs. 27,300 a candy now.

The market price for seed cotton was Rs. 3,300 a quintal as against the MSP of Rs. 2,850 a quintal. Even after reports of unseasonal rains, the cotton crop in the country was estimated to be 295 lakh bales this season.

Cotton production had gone up in the country with the use of BT seeds and better agricultural practices. Farmers and the textile industry should benefit from the cotton production in the country.

Courtesy - The Hindu