The Cotton Association of India (CAI), the premier trade body for the sector, has asked the government to provide budgetary support of Rs 500 crore to help farmers set up drip irrigation facilities in their fields to boost yield.
Around 67 per cent of India’s cotton is produced in rain-fed areas, said CAI President Atul Ganatra at the annual general meeting (AGM).
Cotton is entirely dependent on rainfall in rain-fed areas and does not get adequate water during critical stages of flowering and fruiting when the water requirement is more than 80 per cent of the total need for the crop.
Ganatra said cotton yield in rain-fed areas is substantially lower compared to irrigated belts, especially in Maharashtra where about 95 per cent of the area is dependent on rain. The yield is also low in some areas of Madhya Pradesh, Andhra Pradesh, Tamil Nadu, Karnataka, and Gujarat due to scarcity of water.
“To overcome this, the association has suggested to the government to provide budgetary support to our farmers in these areas and encourage them to introduce drip irrigation technology,” Ganatra said.
Besides substantially increasing cotton yield, he asserted drip irrigation will also be effective in saving 40-60 per cent of total water required for irrigation through flood irrigation.
“Since the cost of installing drip irrigation in India is very high, we have requested our government to provide for the farmers’ benefit a budgetary support of at least Rs 500 crore for setting up drip irrigation systems in farmers’ fields,” Ganatra said.
The association has also demanded that the 5 per cent Basic Customs Duty, 5 per cent Agriculture Infrastructure Development Cess, and 1 per cent Social Welfare Charge that has been levied on the import of cotton into India since 2021-22 should be removed to enable cheaper imports.
On the supply and demand scenario for cotton in India this year, Ganatra said that according to the latest estimates, total cotton acreage during 2024-25 (October to September) is projected to be lower by over 10 per cent to 11.36 million hectares from 12.68 million hectares during last year.
The reduction in sowing area coupled with excessive rainfall damage reported in major cotton growing regions is likely to result in lower cotton production during the ongoing crop year. According to the latest CAI estimates, cotton production in India this season is expected to be lower by 7.70 per cent to 30.22 million bales (1 bale is equal to 170 kgs), down from 32.74 million bales last year.
India is expected to import 2.5 million bales in 2024-25 against 1.52 million bales last year, while exports are projected to fall to 1.8 million bales compared with 2.83 million bales last year, Ganatra said.
The CAI president said that cotton prices this year are around 2.54 to 3.5 per cent less than last year, mirroring global prices which too are around 15-13 per cent less.
