Cotton Trade Case Study

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Economics perspective of cotton production in South Asia Our topic is” How can we achieve profitable and sustainable food production and distribution?” In another world: How can we achieve profitable and sustainable agriculture production and distribution. We narrow this topic to “Sustainable cotton production in South Asia- Case study of BT cotton in Indian and it’s role in farmer suicide.” As is known to all, biotechnology has played an important role in achieving the goal of sustainable and profitable agricultural, such as GMO crop in reducing pesticide use and disease resist. However, negative voices become more in recent years as problems came up. Bt cotton production in Indian is an example, as Indian cotton farmer suicide. From the perspective…show more content…
Cotton supply chain in India The Agriculture Produce Marketing Committee (APMC) is the primary market infrastructure in the country through which cotton is marketed. As for cotton trade, there are two types of marketing agencies:1. Private marketing channels (80%): private sector comprising traders, owners of ginneries operating as individual business proprietors, partnership firms and private limited companies 2. Institutional marketing channels (20%): public sector agencies like the Cotton Corporation of India (CCI) and Co-operative sector In terms of supply chain, there are some aspects should be concerned: 1. How to improve traditional cotton supply chain for sustainability and its impacts on farmers 2. Price transmission asymmetries along supply chain makes farmers gain less when cotton price up and lose more when donw. Cotton supply chain in India 3. Government policy initiatives Farmer Aggregator Ginning & pressing factory Spinning Mills Weaving& knitting industry Dyeing& Finishing Garment& Manufacturing Textile Products Raw cotton Yarn Dyeing& Finishing…show more content…
For development of cotton sector the policy is endeavoured to: Increase cotton productivity and upgrade its quality to international standards, through effective implementation of the Technology Mission on Cotton Reduce the ratio between cotton to non-cotton fibers in line with international trends Encourage full fiber flexibility between cotton and man-made fibers Encourage modernization of the spinning sector pricing, support and subsidy to farmers increase in cotton yield data from 1970s onwards 2.2 Technology Upgradation Fund Scheme (TUFS)The TUFS was launched in April 1999. The scheme was so popular that the industry asked for an extension of the scheme, which was originally set to expire by March 2007, so afterward it was extended to 2012. The policy is aimed to modernize the industry and increase its competitive. Some of the incentives provided under this scheme included: a) Interest reimbursement at the rate of 5% of the normal interest rate charged by the lending agency or rupee term loan, or b) Coverage of 5% exchange fluctuation (interest and repayment) from the base rate on

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