资讯 1 10 英文网 307 Feature 550074 Pain & Gain of Indian Cotton 2015-06-10 14:33:31 yangfang
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Pain & Gain of Indian Cotton
2015-06-10

Muqeet Bokhari of Icotton.Ltd has BBA & MBA degrees from USA and been associated with the textile industry for over 21 years & currently based in China. He has hands on experience of running and working in ginning, spinning, knitting and weaving industries. He also has global exposure of developing textile related businesses.

 

 

Thousands of farmers have committed suicide in the state of Maharashtra, India since 2013, as CNN quoted ‘One cotton farmer commits suicide every eight hours”.  Reasons could be different but mostly its abundant supply resulting in reduced prices against a higher cost & an increase in corresponding debt.  

  

Farming in underdeveloped countries is mostly based on crop history of the region and farmers follow the respective crops they have cultivated for years.  The change comes when a crop size is grown below the demand, raising prices to a significant level and tempting growers to change. This practice has short term benefits and one bad season takes away not only the profits from the past but also assets with it. 

  

Cotton for a long time been a commodity in demand and its cultivation stayed at levels not creating notable panic among growers.  But after a very significant increase in Indian crop size (From approximately 12 million bales in 2001 to approximately 40 million bales in 2015) the global outlook of this commodity has changed.  When cotton cultivation growth in India was at its initial stage benefits were huge as domestic and global demand was digesting the increase till it reached a level in 2011 where the world saw cotton price touched US$ 2.10 per pound which was never seen before.  This tempted a lot to jump in the bandwagon and enjoy the ride being unaware that journey will be short.   

  

Visionaries took notice of this and started preparing to never see it happen again but Indian Government and its farmers thought otherwise with the hope that trend will continue without realizing that its not only cotton it’s the textile industry which has taken a hit and they will not let a single beneficiary destroy the whole industry. 

  

Global commodities which have a direct impact on the livelihood of farmers need special attention by the authorities in terms of guidance, loans and relevant statistics. 

 

With current cotton stock position, future cultivation and expected crop size the situation for cotton and cotton growers will not change rather this commodity may need Government subsidy to survive.  If sanity prevails then crop size be controlled else the suffering will continue and the poor farmers will keep committing suicides.