Impact of Global Recession on Cotton Growers

As per the Second Advance Estimates of Ministry of Agriculture, India’s production of cotton during 2014-15 was 351.52 lakh bales (of 170 Kg each) as compared to 359.02 lakh bales in 2013-14 and 356.02 lakh bales in 2012-13. However, compared to the corresponding period of 2013-14, export of raw cotton during 2014-15 (Apr - Feb 2015), has declined by 41.32% in quantity terms and 46.60% in value terms. As exports account for a substantial share of India’s production of cotton, the decline in exports has resulted in a surplus for the domestic market and has impacted the cotton growers. Cotton Corporation of India (CCI) has undertaken large MSP operations in all cotton growing States.

 For safeguarding the interests of cotton growers in general and disposal of cotton to be procured under the MSP operations in particular, Ministry of Textiles has written to Indian High Commissions/Embassies in cotton deficit countries like Bangladesh, Vietnam, Indonesia, Turkey, Thailand to explore new avenues for export of cotton for stabilizing cotton prices in India.

 This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.