The Indian Cotton Sector: The 'Farms vs. Firms' Debate and Structural Challenges
UPSC Relevance
Prelims: Indian Economy (Agriculture - MSP, CCI, Technology Mission on Cotton); Science & Technology (Biotechnology - Bt Cotton, CRISPR); International Trade.
Mains:
General Studies Paper 3 (Economy/Agriculture/S&T): Major crops cropping patterns; Issues related to direct and indirect farm subsidies and minimum support prices; Food processing and related industries in India—supply chain management; Technology missions; Science and Technology in the fields of Bio-technology; Issues related to doubling farmers' income.
Key Highlights from the News
The government's decision to remove cotton import duty intensified the conflict of interest between farmers and textile firms.
This move was made to help the textile industry, which was in crisis due to American tariffs.
The main reason for the recent increase in imports is that Indian cotton has been priced higher than global prices (declining price parity).
The Indian cotton sector faces several structural problems:
Stagnating productivity. India's cotton productivity is much lower than the world average.
Outdated technology. India still relies on 20-year-old Bt cotton technology, while other countries have moved to newer technologies like Bollgard-III and CRISPR.
Low investment in Research and Development (R&D).
The article argues that to solve these problems, the government should invest more in research and strengthen farm-to-firm linkages.
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