Tamil Nadu firms to promote cotton farming

The recent surge in the prices of cotton, followed by an increase in demand and shortfall in production, has prompted organisations in and around Coimbatore to go in for cotton cultivation in a big way.

After the efforts of cotton bodies like the South India Cotton Association (SICA) and Southern India Mills' Association (SIMA) to promote the cultivation of cotton crop, it is now the turn of Tirupur-based Royal Classic group.

The Rs 225-crore group, which owns the brand Classic Polo, would expand its cotton contract farming activities by adding 2,000 acres to the existing 8,000 acres.

The Royal Classic group's model of contract farming followed in Erode, Salem and Dindigul districts involves around 275 cotton farmers with a total cotton area of 8,000 acres producing low count yarns with a staple length of 29 mm.

The agreement entered by the company with farmers this year is different from last year's. While the company imparted training in crop management, pest management and clean cotton picking and imposed quality parameters on farmers, the latter need not sell the produce exclusively to Royal Classic, R Sivaram, executive director of the company, told Business Standard.

"It is contract farming but with less commitment from both the sides. Last year, of the total procurement, about 15 per cent of cotton, turned out to be sub-standard. This wastage is huge in a business that operates on a 10 per cent margin. Raw material could account for up to 50 per cent of the total spinning costs," he added.

SICA plans to increase the area under cultivation of ELS Bt cotton at its model farm from the present 10,000 acres to 50,000 acres by next year. With this, the production is expected to be doubled next year from the present nine lakh bales a year, according to K N Viswanathan, secretary of the association.

SIMA, along with its Cotton Development and Research Association (CDRA), is planning to promote its hybrid ELS cotton 'Sima HB-3' by raising the crop on 1,000 acres in the coming cotton season starting September.

Both these associations are also planning to set up a Cotton Agro Foundation, which will focus on cotton contract farming and establish links with the government funding organisations for cultivation of the crop.