The Hindu : Business : India backs demand to resolve cotton issue

Online edition of India's National Newspaper
Thursday, Dec 15, 2005

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India backs demand to resolve cotton issue

N. Ravi Kumar

Subsidisation has caused large scale loss of farmers' livelihoods

HONG KONG: India on Wednesday declared its full support for putting the African initiative on cotton on priority at the ongoing sixth WTO ministerial conference here.

Addressing a plenary session in the evening, Union Commerce and Industry Minister Kamal Nath said: "We support the position that removal of distortions caused by high levels of subsidies on cotton in developed countries is absolutely essential for the success of this initiative.''

The persistent and high levels of subsidisation have virtually decimated the economies of countries dependent on cotton and pushed their farmers to the margins of impoverishment, he said. Even in other countries, where cotton is a major crop, such as India, "this phenomenon has caused large scale loss of livelihoods, leading to thousands of farmers becoming indebted and even committing suicide. It is not merely an economic or commercial issue, but an urgent and serious human imperative that should be addressed...''

The Minister added that although India produces substantial quantities of cotton, "we are nevertheless a large net importer, importing almost half a billion dollars worth of cotton per year.'' The imports were being driven by the growth in the textile industry and likely to increase substantially in future providing increasing export opportunities for the African cotton producers.

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