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Monday, June 1, 1998

EICA for setting up national cotton body 

ND Dewani  
May 31: The East India Cotton Association has spearheaded a move to establish a national body on the lines of National Cotton Council for America (NCCA). The proposed National Cotton Council for India would bring together all interests connected with cotton and its products under a single umbrella and to give them a cohesive voice on various issues pertaining to cotton for the benefit of all.

Suresh Kotak, president of the East India Cotton Association (EICA), points out in this context that NCCA aims at keeping cotton strong in a highly competitive fibre market. NCCA is the only organisation representing all the seven cotton industry segments, viz, cotton procedures, ginners, co-operatives, warehouse-keepers, merchants crushers and manufacturing who convert fibre into yarn and fabric.

The mission of NCCA, he says, is to strengthen the ability of all these seven sectors to compete effectively and profitably in the markets at home and abroad. Each segment of membership has an equal voice in developingpolicy that supports the mission. Together they form a broader base for cotton on legislative, research, and regulatory issues affecting the industry. A board of directors, elected each year by the delegates conducts NCCA's business between the two annual meetings. The board is composed of five representatives from each segment of the industry.

The NCCA is supported financially by voluntary contributions from the seven segments on a per-bale, or per-ton-of-seed basis as per the finance plan approved by the delegates.

Various committees of NCCA deal with major areas such as farm programmes and economic policy, international trade policy, public relations and international market development, research and education, packaging and distribution and health safety and environmental quality. NCCA member are eligible for various services provided by it.

The NCCA is thus a unifying force of the entire US cotton industry bringing together representatives from the seven industry segments in the 17 cotton producingstates of the cotton belt to sort out common problems and develop programmes for mutual benefit. The council has 354 delegates elected by 86 state, regional and national cotton organisations. They meet every year and adopt council's policies and set guidelines for its activities over the next 12 months.

The Federal Agricultural Improvements & Reform (FAIR) Act passed by the USA in 1996 seeks to usher in a new era of US farm policy. Cotton and other commodities are proposed to be produced and sold under the most market-oriented farm programme in the history. The greatest impact of this legislation on cotton producer will be the decoupling of benefits from prices and production and the gradual reduction of the government payments through 2002 FAIR allows full planting flexibility decisions. It is hoped that the producers processors and customers will have to focus more on cost reductions through new technology such as transgenic varieties, site specific application system economies scale etc. All this willmake US cotton competitive than at present.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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