India to gain as UK halts cotton spinning

Raw cotton, yarn and textile industries in India and Far-Eastern nations are set to benefit immensely from the total stoppage of cotton spinning in the UK, according to Ray Butler, editor, Cotton Outlook, a UK-based journal.

"Cotton product exports from these nations will increase manifold in near future as cotton spinning activities in Europe and the US are also declining drastically. It is so because Western countries find import cheaper than domestic manufacture," Butler told NewsWire18.

Cotton Outlook has organised International Cotton Conference in Mumbai on Mar 15-16, jointly with East India Cotton Association.

"At times, absence of uniform quality has been the main weakness of Indian cotton export trade," said Butler.

"To put it in a positive manner, I expect that when Shankar 6 cotton variety is ordered by an importer, he should get the same variety," he said.

"Agreeable credit terms and overall financial soundness of exporters are other areas, where Indian cotton exporters, particularly new and young breed of exporters, need improvement," he said.

The excellent quality of medium and short staple cotton and globally competitive prices are main strengths of Indian cotton export, he said.

Butler said that though in cotton year 2006-07 (October-September) India is likely to overtake the US and become world's second largest cotton producer after China, the position in 2008-09 might not be the same.

"The US could bounce back as the second largest cotton producer because it is already in the process of revising farm production legislation, policies and programmes very soon, more so keeping in view outcome of Doha talks," he said.

In value terms, India stood fourth after China, Australia and Uzbekistan. "Nevertheless, India has fully exploited its potential to move ahead in world cotton market both value and volume-wise," Butler said.

"India can look forward to higher cotton export to Pakistan because Pakistan produced only 12.3 million bales in 2006-07"" far lower than initial estimates."

Regarding world famous and costliest Egyptian cotton, Butler said the Giza variety of extra long staple fits into this category. However, its production and market are very small segment of world cotton trade.

"India grows varieties called Suvin and MCU-5 and the US grows a variety, namely, Pima, that match Giza variety of Egypt."

Welcoming rise in Bt cotton farming in India, Butler said the variety was one of the lead factors that raised cotton production recently in India.

"Farm technique improvement, equipment up-gradation and better basic farming practice were other factors responsible for higher cotton production in India."

As a note of caution, he said the country must adopt and strictly enforce regulations against Bt cotton that are in force in the US.

"For instance, the US has a rule under which every Bt cotton farmer has to ensure that adjoining field of other crop is not infested by cultivation of Bt cotton. For this he has to install high insulator screens around his field."