Cotton export from Gujarat set to break all records

Gandhinagar: In what is being described as major boon the state's farmers, cotton export from Gujarat this year is likely to break all past records. Well-placed Sachivalaya sources said that the latest information from the fields suggest that the farmers so far have signed up contracts for nearly 40 lakh bales with trading companies for exporting the cash crop. "We expect export contracts for another 20 lakh bales," a senior official said, adding, "This year's 60 lakh bales would be against 52 lakh bales exported last year."
Further, Gujarat will export nearly 75-80 per cent of the cotton produced in the country as a whole. "So far, contracts for 50 lakh bales for the country have been signed up, and India's total contracts are likely to reach between 80 lakh bales and 85 lakh bales," the official informed TOI, adding, "Most of the export from Gujarat – nearly 90 per cent – will go to China. It is mainly the best variety Bt cotton, of Shankar variety, with 28-30 mm staple."

A higher export from Gujarat will become possible as the Centre lifted restrictions on it. Also, Gujarat's cotton production this year is likely to be 112 lakh bales, up from 78 lakh bales last year. Farmers will complete the harvesting by mid-January. Currently going on in full swing across the state, two pluckings are already over, and the third and the fourth pluckings are currently taking place. Gujarat's per hectare cotton yield is roughly 1,350 kg. It's three times that of Maharashtra's Vidarbha region, for which Maharashtra has been forced to announce a Rs 2,000-crore package.

Interestingly, the trading agencies find exporting cotton more profitable than using it at home. "The ship freight cost in exporting cotton to China is about half of what it would cost the trader if the commodity is sent to Tamil Nadu by road. This is one reason why farmers prefer to sign up contracts to export cotton instead of sending the commodity to Tamil Nadu, which has the largest number of cotton ginning mills," the official said, adding, "India's offshore shipping laws are prohibitively costly, another reason for the farmers to encourage export of the commodity."

Higher exports are likely despite the fact that farmers are unable to get a good price for their commodity. This year, the Government of India fixed the minimum support price for cotton at Rs 3,300 per quintal, and the farmers are unable to get more than Rs 3,500 per quintal. This is against Rs 6,500 to Rs 7,000 per quintal they got a year ago.