Cotton - Prefered Crop

The high prices of crude oil and the resultant impact on the economy is compelling the promotion of Bio Fuel. The diversion of food grains and cotton acreage for producing Ethanol will have serious socio economic crisis in the developing and underdeveloped countries.

Many of the traditional Cotton producing countries becoming net importers is of serious concern to the industry at large, United states of America being a major exporter of cotton , the diversion of cotton acreage in US to other crops like corn ,soya etc.. to meet the demand of Ethanol will only reduce the availability of cotton in the world market. This will bring more pressure on price of cotton.

The pressure on food grains is also on the increase as many of traditional export countries have restricted exports and are facing deficit for their consumption.

We have seen a similar trend already in India, diversion of cotton acreage for more remunerative crop like soya for export.

India and China consume over 50 percent of world cotton , the cotton year 2008-2009 will see a decrease in carry over stock for the year.

There fore it is very essential that we encourage farmers to grow cotton and make cotton as a prefered crop with attractive remuneration.

The government policies should ensure that there is no large disparity between international and Indian prices of cotton with appropriate reduction of import duties or impose export duty.