International Business Environments and Operations 16th Global Edition test b...
Greening the cotton value chain
1. Greening the Cotton Value Chain Centre for Sustainable Agriculture Andhra Pradesh.Maharashtra.Punjab
2. Cotton crop: Current scenario India occupies top position in area (9.2 m.ha) and has 15 market share Second largest in cotton production Largest in Bt cotton and Organic cotton production Occupies about 5 % of cropped area in India Grown under a variety of conditions Mostly grown with hybrids Area under GM Bt cotton increasing Consumes about 20-23% of nutrient and hormonal chemicals and 55% of pesticidal chemicals - insecticides, fungicides, herbicides
3. Cotton important for industry and livelihoods Cotton is the most important raw material for India's Rs. 1,50,000 crores textile industry, which accounts for nearly 20% of the total national industrial production and provides employment to over 15 million people. It also accounts for more than 30% of exports, making it India's largest net foreign exchange industry. India earns foreign exchange to the tune of $10-12 billion annually from exports of cotton yarn, thread, fabrics, apparel and made-ups. Cotton accounts for more than 75% of the total fibre that is converted into yarn by the spinning mills in India and 58% of the total textile fabric materials produced in the country. More than 80 million people are involved across the cotton value chain in production, processing and handloom and textile manufacturing
4. Cotton Crisis: Current scenario Caught in a debt trap High input costs, Uncertain inputs, Uncertain market prices Linked to farmers suicides-case of Andhra Pradesh 1987 prakasham, guntur dist. > 100 farmers committed suicides, several migrated 1997 warangal, karimnagar dist > 750 farmers committed suicides 2004 all over the state >1500 farmers committed suicides ..this time not just cotton farmers 2005 onwards cattle morbidity reported after feeding on Bt cotton Linked to Weavers suicides-case of Andhra Pradesh more than 400 weavers suicides in the last two years
5. Crisis largely technology driven and skewed policy support Spinning determines cultivation Spinning mills operate on very large scales to justify infrastructural costs. It is not viable for a spinning mill to carry out conversion unless cotton is available in very large quantities to match the scale of operation of the mill High mechanization reduces the quality of cotton Long distance travel requires bailing which is high energy consuming and polluting So the small farmer has to grow what everybody else grows the long staple hybrid cottons and now the Genetically modified Bt cotton Hybrids, GM dominate the seed technology American cottons replaced the once famous Indian Cottons and Hybrids replaced Varieties and now 98 % of cotton is under Bt cotton Seed monopoly with one company controlling about 85 % of the seed market, huge royalties are collected (Rs. 200/packet of 450 grams- per acre 2 packets) No research on desi cottons or non bt cotton
6. Non Pesticidal Management CSA worked on reducing pesticide use in agriculture and could successfully demonstrate on a large scale which is now practiced in more than 35 lakh acres in all crops including cotton in Andhra Pradesh
7. Organic Hybrids through Participatory Plant Breeding CSA worked on developing non GM cotton varieties and hybrids through participatory plant breeding which are used by organic farming groups
8. Malkha cotton fabric CSA along with Decentralised Cotton Yarn Trust established Decentralised cotton processing units where in cotton can be processed without bailing and can be calibrated for diverse cotton varieties. Three units are now in Andhra Pradesh, at Punukula, Siricilla and Boorgula. The units provide employment to the 30 people in the village.
9. Farmers organized along the value chain Seven farmers cooperatives and one Consumer Cooperative are organised to SahajaAharam Cooperative Federation Farmers produce and market pesticide free and Organic foods as SahajaAharam (meaning natural food) and cloth as Malkha