Swatchh Kapas Sachh Kapas Prashant Agarwal Joint Managing

Swatchh Kapas, Sachh Kapas Prashant Agarwal, Joint Managing Director Wazir Advisors, India 10 th November 2019

Contents 1 Overview of Global & Indian Cotton Sector 2 Recommendations for Indian Cotton Sector 3

Overview of Global & Indian Cotton Sector

India commands the largest share of area under cultivation for cotton • Cotton crop is grown in about 70 countries across the world and planted in an area of 31. 8 million hectares. • India with a share of 36% has the highest land under cotton cultivation, followed by USA and China having a share of 14% and 10%, respectively. Country wise Area under Cotton Cultivation (2017 -18) Values in million hectares 31, 8 35, 0 120% 30, 0 100% 25, 0 80% 20, 0 60% 15, 0 10, 0 11, 3 40% 36% 4, 5 14% 5, 0 3, 2 10% 2, 7 8% - India Data Source: ICAC United States China Pakistan 20% 1, 2 4% Uzbekistan 1, 0 Brazil 3% 0, 8 3% Burkina Faso 0% World 5

Gujarat, Maharashtra and Telangana are the top cotton producers Jammu & Kashmir Name of the State Himachal Pradesh Punjab Northern Zone Uttarakhand Haryana Arunachal Pradesh Sikkim Delhi Uttar Pradesh Rajasthan Assam Bihar Meghalaya Jharkhand Gujarat Madhya Pradesh West Bengal Chattisgarh Tripura Nagaland Manipur Mizoram Values for 2017 -18 Share(%) Production (In Lakh bales of 170 kgs) Punjab 11. 50 3% Haryana 22. 50 6% Rajasthan 22. 00 6% NORTHERN ZONE 56. 00 15% 104. 00 28% Maharashtra 85. 00 23% Madhya Pradesh 20. 50 6% CENTRAL ZONE 209. 50 57% Telangana 55. 00 15% Andhra Pradesh 20. 50 6% Karnataka 18. 00 5% Tamil Nadu 5. 50 1% 99. 00 27% Orissa 3. 50 1% Others 2. 00 1% TOTAL 370. 00 Gujarat Orissa Maharashtra Telangana Central Zone Goa Karnataka Andhra Pradesh Southern Zone SOUTHERN ZONE Kerala Tamil Nadu 6

India is the global leader in the production of cotton • Global cotton production is estimated at 24. 9 billion kg. • In terms of global production, India, China & USA are the major cotton producing nations, accounting for nearly 65% of the world production. Country wise Cotton Production (2017 -18) 7 000 Values in million kg 110% 6 132 6 000 5 107 5 000 90% 4 468 70% 4 000 50% 3 000 25% 20% 18% 1 952 8% 2 000 1 555 6% 1 000 30% 997 4% 800 10% 3% - -10% India Data Source: ICAC China USA Pakistan Brazil Australia Uzbekistan 7

Yet, India’s yield is much lower than other top cotton growing countries • The current world average yield is 767 kg/hectare whereas India’s yield is 505 kg/hectare • The yield of cotton in India has remained around the 500 mark and was highest in 2013 -14 at 566 kg/hectare Values in kg/hectare In 2017 -18 Yield of Top Cotton Producing Countries 1 990 1 758 1 652 992 Australia Data Source: ICAC China Brazil United States 767 World 662 580 505 Uzbekistan Pakistan India 8

Indian Cotton Farm vs Mechanized Cotton Farm Indian Cotton Farm • Handpicking of cotton • Rain-fed land for cotton farming • Small land holding of farms having an area of 2 -4 hectares Mechanized Cotton Farm • • High Density Plantation System (HDPS) Mechanized farming Irrigated land for cotton farming Large land holding of farms having an area of 11, 000 hectares 9

What Needs to be Done?

Stakeholder level 1 2 Farmer Awareness and Best Practices Program • • • Packaging, storing, handling and transportation of cotton Standardized testing reports Level of contamination Ginning practices Safety and quality index Institutionalization of Cotton Awards • • • Highest yield Lowest Contamination Best practices at ginning level Innovation at farm Innovation at ginning Sustainable practices 11

Government level 1 Revival of Technology Mission for Cotton (TMC) • Improve the yield and quality of cotton • Increase the income of the cotton growers • Improve productivity through farm mechanization Incentivizing ginners for setting up labs for testing 2 Packing standardization & HVI testing • Proper system for classification and grading of the cotton • Bales should be tied with high quality iron hoops instead of PET strip 3 Policy Initiatives • Consolidation of farms • Promoting irrigated farms for cotton cultivation 12

Stakeholder level 4 Special package for development of ELS variety and creating long term funds • Special subsidy package for ELS variety cotton • Special guidance and advisory services to the local farmers on the ELS cotton cultivation should include technical guidance, guidance on scientific farming, integrated pest management from experts to build confidence among ELS growers 5 100% tested cotton • Norm for 100% tested cotton for both domestic and exports 13

Indian cotton is of good quality and its softness & feel is appreciated globally. So we should focus on branding and creating more value added products. For Indian cotton growers to get right value, we should emphasize on increasing cotton garment exports which will lead to better profit margins. 14

THANK YOU!