Vol. 2, Issue 5 (2015)
Supply chain management of cotton in Odisha: Small and medium farmer's concern
Author(s): Narendra N. Dalei, Anshuman Gupta, Paradip Dash
Abstract: Indian textiles industry is predominantly cotton dominated. India is second largest producer of cotton in the world and producing a large variety and quality of cotton. One of the key issues, which require research, is the method by which we can reduce the post- harvest loss, which is quite substantial at present. This would need design of cost effective, efficient, environment friendly storage system. Also, there is need for value addition to agricultural produce to maximize the agriculture return through distribution channel. Odisha has one of the rich traditions of handloom and handicrafts in the country, which goes back to the time of antiquity. Apart from that, handloom and handicrafts products of Odisha are appreciated all over the country and outside because of exquisite designs, natural motifs and superb colour combination. The state is purely depends on handloom in textile sector and the handloom is dominated with the agricultural product that is cotton. In Odisha cotton cultivation is an up-coming activity. Many of the western belt farmers, mainly from Rayagada, Bolangir, Kalahandi, Nabarangpur, and Nuapara districts have been taking cultivation of this cash crop. An average of 3.5 lakh bales of Cotton is cultivated in the state, of which approximately 2 lakh bales are ginned and pressed in the state. The traders and spinners of other states procure the remaining cotton. The area of cotton cultivation has been increasing tremendously. But the problem of selling the cotton in right price to the right person/agent/ organization is the difficult task to the common farmers. The production process starts with the farmer. Once the cotton is yielded, small farmers are not able to sell it in right price as always there is challenge for them to bring the small amount of cotton to the market from such a remote area by any means of transportation. This also will be more costly than their final selling price of their product. Even though the government agency is working in that area for the purchase of cotton but it is not helpful to them. They are compelling to sell to the private agent in low price to avoid the price fluctuation and for getting early price realization of their product for the domestic expenditure in the day to day life. In this context, our objectives are to study the supply chain management of cotton in Odisha, and to find out factors affecting small and marginal farmers in production and supply of cotton to the market. The study would be based upon analysis of secondary data collected from Textile Committee, Govt. of India and from other published sources. The expected result will show that the supply chain of cotton is not sustainable, farmers are not getting correct value for their produce and this is affecting textile market negatively. The expected policy implication of our study will be to stabilize the textile market and to make availability of textile product at reasonable prices to the consumers which may be based upon our suggested recommendations.