Budget 2023: Extra-long staple cotton gets extra attention

FM proposes PPP model to boost production of ELS cotton, which enjoys huge demand from textile industry

Extra-long staple cotton, a niche produce greatly in demand in the textile industry, received a major boost with a slew of measures announced by Union Finance Minister Nirmala Sitharaman for enhanced output and higher returns to farmers. “We will adopt a cluster-based and value chain approach through public-private partnerships (PPP) to enhance the productivity of extra-long staple cotton,” she said.

“This will mean collaboration between farmers, the State governments and industry for input supplies, extension services, and market linkages,” she said.

According to trade experts, out of the total ELS cotton requirement of 20 lakh bales (each of 170 kg), India produces only about 5 lakh bales, forcing the industry to depend on imports from Egypt and the US to meet the demand for this high-quality fibre.

What is ELS cotton?

Extra-long cotton or ELS in loom yarns, high-end fabrics and in sewing threads. Though a major cotton producer, India lags in the production of ELS cotton, forcing it to depend on imports. The textile industry, for long, asked the government to make efforts to increase the availability of ELS cotton to lower the cost of textile production.

Issues with ELs

The industry, however, expected much more from the government to bolster the sector, which has been saddled with poor returns and decreasing yields. “We wanted the government to announce measures to promote research which will go a long way in promoting ELS varieties. We, however, will wait for the finer details of the announcement made in the Budget,” Ram Kaundinya, Director-General of Federation of Seed Industry of India, told businessline.

The difficulty with ELS cotton, which belongs to a species called Barbadens, is a long-duration crop. Yields are low and the incidence of Pink Bollworm attacks is high. Hence, farmers do not prefer to plant it. There has not been much research regarding ELS cotton to develop high-yielding hybrids/varieties.

M Prabhakara Rao, President of the National Seed Association of India (NSAI), has welcomed the move and said that there is a huge potential in the country for ELS cotton. “We have seeds available for ELS. We have appealed to announce measures to promote ELS,” he said.

With a staple length of 34-35 mm, India’s hybrid DCH-32 costs about ₹70,000 a candy (356 kg) as against Prima variety from the US which costs ₹1.5 lakh. “This is a welcome step by the government to encourage domestic cultivation for ELS cotton variety. This is a win-win for both farmers and industry,” Atul Ganatra, President of Cotton Association of India, said.

Cotton expert S Stalekar noted that the move would bring down the cost of ELS cotton for the cotton industry. “The impact of this move may not be reflected immediately in the market. But going forward, we will see cotton growers and the trade benefitting from it,” he said.

Ashwani Jhamb, Director at the Indian Cotton Association, welcomed the move but underlined the challenge of finding good quality seeds and the need for new research on seed development.

Source: https://www.thehindubusinessline.com/