MANUAL ON

GOOD AGRICULTURAL MARKETING

PRACTICES FOR COTTON

GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE
(DEPARTMENT OF AGRICULTURE & COOPERATION)
DIRECTORATE OF MARKETING & INSPECTION
BRANCH HEAD OFFICE
NAGPUR
2008
MRPC-83
 PREFACE
The Inter- Ministerial Task Force on Agricultural Marketing Reforms in their Report
in May 2002, suggested several measures for undertaking various reforms in the
Agricultural Marketing System in the country. In consideration of the keen competition in
the domestic, as well as export markets, it has become imperative to launch awareness
programme vigorously to up date and up-grade the technical know-how of various
stakeholders involved in the marketing of farm produce in multidimensional aspects of
agricultural marketing system.

Cotton plays a vital role in the Indian economy, It provides gainful employment to
million of people besides contributing substantially to the countries foreign trade. The
economic significance of cotton and cotton industry in India is so great that Mahatma
Gandhi based his freedom movement on cotton economics. India has brought about
qualitative & quantitative transformation in the production of cotton since Independence.
Considering it’s importance, an attempt has been made to draft a comprehensive and
educative manual covering various aspects of it’s post-harvest managerial measures.
Accordingly, the present Manual on Good Agricultural Marketing Practices for Cotton
has been drafted by Dr. Rajendra R. Karpate, Marketing Officer under guidance of Shri
P.J.Chimalwar, Assistant Agricultural Marketing Adviser, Branch Head Office with the
overall guidance of Shri Har Prasad, Joint Agricultural Marketing Adviser, Branch Head
Office, Nagpur.

The Government of India should not be regarded as assuming the responsibility

for any of the statements contained in this manual. However, any creative suggestion to
bring about further improvement in the manual would be most welcome.

Sd/-
Faridabad (U.K.S.CHAUHAN)
Agricultural Marketing Adviser
to the Government of India
 MANUAL ON
GOOD AGRICULTURAL MARKETING PRACTICES FOR COTTON

CONTENTS

Page No.

1. INTRODUCTION 1

2. UTILIZATION 3

3. ZONE-WISE MAJOR COMMERCIAL VARIETIES 3

4. HARVESTING AND POST HARVEST CARE 5

5. GRADING 5

6. PACKAGING 8

7. TRANSPORTATION 9

8. STORAGE 10

9. IMPORTANT ASSEMBLING MARKETS 14

10. MARKETING CHANNELS 14

11. MARKET INFORMATION & EXTENSION SERVICE 15

12. ALTERNATIVE SYSTEM OF MARKETING 17

13. INSTITUTIONAL CREDIT FACILITIES 19

14. ORGANIZATIONS PROVIDING MARKETING SERVICES 20

15. DO’S & DON’TS. 22

ANNEXURE-I Cotton Grading and Marking Rules. 23

ANNEXURE-II Cotton seeds Grading and Marking Rules. 26

ANNEXURE-III Model Agreement for Contract Farming. 29

 COTTON
1.0 INTRODUCTION :
Cotton often referred as "White gold" , has been in cultivation in India for more
than five thousand years. It is one of the oldest fibers and the time when it was first
utilized is not known accurately. It is a soft fiber that grows around the seeds of the cotton
plant (Gossypium spp.), a shrub native to the tropical and subtropical regions of both the
Old World and the New World. The fiber is most often spun into thread and used to make
a soft, breathable textile, which is the most widely used natural-fiber cloth in clothing
today.

Cotton is used to make a number of textile products viz. terrycloth, bath towels and
robes; denim, used to make blue jeans; twill. Socks, underwear, and most T-shirts are
made from cotton. Bed sheets are often made from cotton. Cotton is also used to make
yarn used in crochet and knitting. Fabric can also be made from recycled or recovered
cotton that would otherwise be thrown away during the spinning, weaving or cutting
process. While many fabrics are made completely of cotton, cotton is blended with other
fibers, including rayon and synthetic fibers such as polyester. In addition to the textile
industry, cotton is used in fishnets, coffee filters, tents, gunpowder, cotton paper and in
bookbinding.

BT COTTON:

India ranks number one in the world accounting for 20 percent of the total area
planted under cotton. However, even with highest area under cotton, nine million
hectares, India ranks only third position with only 13 percent in production of cotton.
India’s average yield is only 319 kg/ha lint as compared to world average of 603 kg/ha.
Cotton is highly susceptible to insects; especially to the larvae of lepidopteron pests,
which is impending cotton production and resulted in high pesticide consumption by a
single crop and to the tune of 50 percent of the total consumption. The total loss due to
damage to cotton crop is estimated to be more than Rs.1200 crores. The chemical control
to suppress these insect pests are proving ineffective as these pests have developed high
level of immunity for most of such chemical pesticides used for the control of bollworm
complex. Such a high level of resistance requires repeated application of insecticides
leading to heavy expenditure, crop failures, and vicious cycle of debt for farmers.
Therefore, it has been argued that adoption of Bt cotton could help in protecting the crop
against potentially the most damaging bollworm and thus reduce the risk of crop failures.

Bt cotton, a transgenic plant, produces an insect controlling protein Cry1A(c), the

gene for which has been derived from the naturally occurring bacterium, Bacillus
thuringiensis sub sp. kurstaki (B.t.k.). The cotton hybrids containing Bt gene produces its
own toxin to counter the bollworm attack, thus significantly reducing pesticide
consumption and providing a major benefit to cotton growers and the environment.

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ORGANIC COTTON :
Organic cotton pertains sustaining cotton production along with conservation of
natural habitats and resources with no pollution to soil, water and environment. In certain
pockets of Gujarat cultivation of G. herbaceum species has not been exposed to
ravages of modern agriculture. Population of natural predators and parasites have been
build up which may support the organic cotton cultivation in these areas.

G. herbaceum cotton varieties are biotic tolerant like immune to CLCV and bacterial
blight resistant to sucking pests and comparatively tolerant to bollworm complex. It is
mostly cultivated in rainfed cotton area and found abiotic tolerant like salinity/sodicity,
drought / water stress and wind. This characteristic of G. herbaceous favour the
cultivation of organic cotton. Organic cotton can be produced with little efforts from these
pockets of Gujarat. Organic cotton is produced unknowingly in this area. We have the
technocrats for the production of organic cotton and other agricultural commodities and
made available to users on demand as per their requirements.
In spite of the advances in cotton production, it has to propagate the cause at the
national & international level by joining the forces and harmonizing of the interest of the
producers, users & other concerned. Encouraged by the results obtained in the field of
oilseeds by adopting a mission mode approach during the 1990s and with a objective to
improve the quality of cotton, enhance per hectare productivity, enhance the income of
cotton growers by reducing the cost of cultivation, to improve the processing facilities etc.,
the Government of India has launched Technology Mission On Cotton in February 2000
which encompasses Four Mini Missions for achieving the above objectives.

MINI MISSION- I
With the Indian Council of Agricultural Research (ICAR) as the Nodal Agency, this
Mini Mission has the following objectives:
Ä Development of short duration, high yielding, disease and pest resistant
varieties/hybrids with appropriate fibre parameters to meet the need of the textile
industry.
Ä Development of integrated water and nutrient management practices for cotton
and cotton based cropping system.
Ä Development and validation of Integrated Pest Management Technology for
different cotton growing areas of India to improve yield and reduce the cost of
cultivation to ensure better net return to the cotton growers.
MINI MISSION- II
Ä Technology Transfer through demonstration and training. Supply of delinted
certified seed by setting up of delinting units. Accelerating Integrated Pest
Management activities. Providing adequate and timely information input to the
farmers periodically.

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MINI MISSION- III

Ä Improvement of marketing infrastructure through setting up new market yards and

activation/improvement of existing market yards.

MINI MISSION- IV

Ä Modernization and technological up gradation of existing ginning and pressing

factories so as to improve the processing of cotton.

2.0 UTILISATION :

PRODUCTS DERIVED FROM COTTON FIBRE

Source : UNCTAD secretariat, drawing upon "Etude relative au mécanisme de formation

des prix de cession du coton-graine et des intrants agricoles au Bénin" (Anna
Croles-Rees and Bio Goura Soulé Lares, 2001)

3.0 ZONE-WISE MAJOR COMMERCIAL VARIETIES :

Sl.No. States G. Hirsutum G. Arboreum Hybrids
1. 2. 3. 4. 5.
NORTH ZONE
1. Punjab F-286,LH-886 LD-230 FATEH
F-414, LH-900 LD-327 LHH-144
F-505, LH-1134 LD-491 LDH-11
F-846, F-1084 J-34
F-1378, LH-1556 G-27
2. Haryana H-777, HS-45 DS-1 DHANALAKSHMI
HS-6, H-1098 DS-5 OMSHANKAR
H-974 HD-107 (CSHH-29) (Entire Northern
G-27, J-34 F-141 Zone)

3
1. 2. 3. 4. 5.
3. Rajasthan G-AGETI, HS-6 RG-8, H-123, RAJHH-16
RG18 (MARUVIKAS)
RST-9, B-NARMA
RS-875, RG-810,
RH-2013
4. Western UP VIKAS LOHIT - SHAMLI
CENTRAL ZONE
5. Madhya KHANDWA-3 MALJARI JKHY-1, JK-4
Pradesh VIKRAM H-4, H-8, H-6 JKHY-2
KC-94-2 AJIT, RCH-118 JAWAHAR TAPTI-1
BT.
6. Maharashtra PKV-081 PA-183 PKVHY-2
DHY-286 AKH-4 PKVHY-3
LRA-5166 JYOTI NHH-44, H=-=6,
BT.BRAHMA
LRK-516 AKA-5 NHB-12, MCH-11
CNH-36 EKNATH CICRHH-1
AKA-8401 DCH-32
AROGYA ROHINI PKVHY-4
RAJAT Y-1 PHA-46
7. Gujarat G-COT-12 G-COT-15 H-6, H-8
LRK-516 G-COT-13 H-6, H-8
G-COT-14, G.COT-100G-COT-19 DH-9
CNH-36, MECH-1 G-COT-21 G.COT-4
G-COT-16 G.COT-6
SOUTHERN ZONE
8. Andhra LRA-5166, BUNNY SRISAILAM JKHY-1
Pradesh NH-920, RCH-2 MAHANANDI DCH-32
LK-861, MCV-5 NA-1315 SAVITHA
L-389, MECH-1 & II JK-DURGA HB-224
KANCHANA TCHB-213, DDH-2
9. Karnataka SHARDA G-22 DCH-32
JK-119 AK-235 DH3-105
ABHADITA RALCHUR-51 DH3-105
SAHANA DB-3-12 DHH-11,HB-224
10. Tamilnadu MCU-5 K-10 SAVITA
MCU-5-VT K-11 SURYA
MCU-7 KC-2 SRUTHI, GUNNY
MCU-9 SVPR-2 DCH-32
LRA-5166 SVPR-3 TCHB-312, MECH-84
LRK-516 ANJALI BT
SURABHI HB-224
RCH-2

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4.0 HARVESTING AND POST HARVEST CARE :

(A) HARVESTING CARE :

a) Seed cotton should be collected from fully opened bolls only.

b) The practice of collecting half open bolls, drying them and then removing
the seed cotton should be discouraged; as such a practice results in lower
grade and quality of fiber.
c) Picking should be avoided in hot mid-day, as there is a possibility of
collecting dried leaf-bits, etc. It is advisable not to do picking when the
weather condition is wet. Picking should be done early in the morning &
evening.

(B) POST HARVEST CARE :

a) It is preferable to keep seed cotton from last picking separately for

marketing, as this is generally lower in quality.
b) Before transport to the market, seed cotton should be heaped on a cloth or
gunny or paper spread in a corner. It is advisable that care should be taken
that seed cotton should not come into direct contact with the soil to avoid
increase of trash content.
c) After picking, the seed cotton should be allowed to dry in the shade. The
excessive exposure to sun should be avoided as it lowers the grade due to
yellowing.
d) The seed cotton should be fully covered to protect it from sun and rain as
well as to avoid contamination by wind during transport to the market,. This
will also prevent loss of seed cotton either due to pilferage or due to being
blown away by wind.

5.0 GRADING :
Grading plays an important role in the marketing process of cotton.

Importance :

i) It helps the producer and seller to determine the price.

ii) It reduce the cost of marketing and helps the consumers to get standard cotton at
fair price.
iii) It facilitates the scope to widen the avenue for cotton export.
iv) It has a direct influence on utilization point of view.

5
5.1 Methods of Grading.
‘Grade’ in cotton is determined by a number of physical properties. These
essentially are: colour, luster, fineness, trash content, level of stained or immature
kapas, feel and moisture content.

(a) MARKING OF LOTS –

A lot denotes the kapas of one variety brought by one producer for sale on
a given day. Lots of different varieties are to be offered separately and should not
be mixed. The lot number should be clearly marked on the containers. The
marking should also include a suitable code number to indicate the variety, the
number of carts/trucks/bags/containers indicating the lot and the date of arrivals.
(b) DRAWING OF SAMPLES –
For grading, approximately 4 kg. samples are to be taken from each lot,
drawing small quantities from at least four different places so that the samples are
representative.
(c) FACTORS FOR EVALUATION –
There are three main factors for evaluation, of kapas samples viz., grade,
staple length and ginning percentage. The determination of each of these factors
is described below.

Grade General Characters

Designation

Special Shall be white in colour and silky in feel (characteristic of the variety):
shall be free from stained kapas or immature kapas: shall be free
from added moisture.

“A” Shall be white in colour and silky in feel (characteristic of the variety):
slightly leafy: free from stained kapas and immature kapas; shall be
free from added moisture.

“B” Slightly dull in colour; soft in feel; slightly free from leaf, stained kapas
or immature kapas; shall be free from added moisture.

“C” Slightly dull in colour: soft in feel; moderately free from leaf, stained
kapas or immature kapas; shall be free from added moisture.

“D” Dull in colour, good in feel; leafy; containes stained and immature
kapas; shall be free from added moisture.

“X” Any kapas that does not fall into any of the above grades.
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 (d) DETERMINATION OF GINNING PERCENTAGE –

After assigning the grade, the kapas on the grading table shall be divided
into two equal parts and one part replaced in the bag. The material remaining shall
again be mixed and made into two parts of which one shall be retained. This
process is to be continued until approximately 500 gm. of kapas is left on the
grading table. From this, a test sample of 80 to 100 gm. is to be taken for
determining the ginning percentage when the laboratory model gin is used. In the
case of commercial gin, the sample size prescribed is 500 gm. The sample
selected for ginning has then to be put in a cloth bag to which the grade card
showing the lot number etc. shall be pinned and sent to the grader in charge of
ginning. The gins are to be properly cleaned and adjusted before ginning. In the
case of laboratory model gin, the “ginning percentage balance” can be used to
directly obtain the ginning percentage. When commercial gin is used, the kapas as
well as lint and seed after ginning are to be carefully collected and weighed in an
analytical balance to determine the ginning percentage. The ginning percentage
shall be noted on the grade card and signed by the grader in charge of ginning.
The lint and seeds in a separate cloth bag are then to be sent to the grading officer
along with the grade card. The latter shall enter the ginning particulars in the
concerned register to complete the record.

(e) DETERMINATION OF STAPLE –

A “pull” of the lint from the resultant lint shall be obtained from the cloth
bag by the method specified and enter the staple length of this “pull” in the
appropriate column of the grade card.
The lint and seeds are then to be placed in cloth bag and the grade card
returned to the grader who will place the grade card indicating the ‘grade’, ginning
percentage and staple length on the lot. The sample of lint may also be displayed
on the lot. The auction of the lot shall take place only after the ‘grade’, ginning
percentage and staple length of the lot have been assigned to it and are properly
exhibited along with the lot for the examination of intending buyers. After the
auction is completed, the grader shall enter the price in the grade card and return
the same to the Grading Officer for record. Disputes, if any, are to be settled by an
Advisory Committee consisting of one representative each of the Market
Committee, growers and local traders with the Grading Officer working as the
convener.
I) Agmark Grade Standard / Specifications
The grading of cotton has been taken up under Agmark since 1939, as per
provisions of the Agricultural Produce (Grading and Marking) Act. 1937 and the cotton
Grading & Marking Rules, 1939 (as amended 1971). The Grading and Marking Rules
have also been framed for cotton seeds. The relevant rules for grading under Agmark
are furnished at Annexure-I, II

7
 II) Cotton Standards Around The World
The USDA has taken a leadership role in efforts to bring standardization and
acceptance of its HVI (High Volume Instruments) cotton classification system into the
international arena where cotton is an important product in global textile import and
export markets. The International Organization for Standardization (ISO) maintains two
standards for cotton fibers: one for the measurement of micronaire (ISO 2403: 1972,
Textiles-Cotton fibres-Determination of micronaire value) and another for equipment and
artificial lighting guideline for cotton classing rooms (ISO 4911: 1980 Textiles-Cotton
fibres-Equipment and artificial lighting for cotton classing rooms) but does not have any
cotton fiber classification standards.
ASTM - with industry support from USDA, Cotton Incorporated, testing equipment
manufacturers, and the U.S. Departments of Commerce, Customs, and Homeland
Security - maintains the basic cotton fiber test method and HVI standards. Additional
cotton classification standards are planned for development within ASTM’s Subcommittee
D13.11. USDA’s expertise and experience in cotton classification was noted by the
International Cotton Advisory Committee’s Expert Panel on Commercial Standardization
of Instrument Testing of Cotton when they recommended USDA’s classification system
as the model to be used by other countries’ cotton classification process in 2004.
China’s upland cotton production is consumed by that country’s own textile
industry. Even though its cotton planting area has increased to the level that it is now the
largest producer of cotton in the world, it has become an importer of cotton during the last
two years. China’s cotton classification system is currently based on individual instrument
measurements and visual color grades. In 2003, the Chinese government made the
decision to move toward full cotton classification using HVI systems. The Chinese Fiber
Inspection Bureau has been given the task of implementing such a system by 2010.

6.0 PACKAGING :
To supply high quality of cotton efficiently and economically to the end users,
some general guidance to be followed for reducing the contaminations. Proper
Packaging Protects Cotton bales from, contamination, dampness, fiber loss. Cotton is
wrapped completely in cotton, jute, plastic fabric, or sometimes in plastic films perforated
so as to regulate moisture content of cotton bale. Once the bag is sealed from all the side
this cotton is protected from outside elements.

MATERIAL USED FOR PACKING

Cotton Bale Packing Materials:
ƒ Woven Cotton Bags
ƒ Warp Knitted Cotton Bags
ƒ Polyethylene Film Bags
ƒ Polypropylene Bags
ƒ Polyethylene Woven Bags
ƒ Jute Bags
ƒ Shrink Wrap (Not Common)
8
Standardized Bale Size and Packaging
Panel: Rectangular sheet of fabric; refers to top sheet in bag and panel combination of
new jute, cotton, or woven polypropylene for use on gin universal or gin standard density
bales.
Spiral-Sewn Bag: Sewn bag from burlap, cotton or polypropylene. Fabric is sewn on a
bale resulting in a tube with the seam spiraling around the bale circumference. After
application, bale ties are under packaging.
Gusseted Bag: Sewn bag from polypropylene. Fabric is seamed resulting in a tube with
the seam running parallel to the edges of the tube. Opposite edges of the tube are folded
inwardly to form two V-shaped sections between the front and back faces of the tube. The
bottom seam of the bag
is sewn through 4 layers of fabric in the gusset areas. The gussets create a rectangular-
shaped mouth for filling and a rectangular bottom in the filled bag. After application, bale
ties are under bagging.
Polyethylene Bags: Pre-formed Tubes., sealed at one end and supplied in rolls. Least
labour intensive. The top of the bag is Heat-sealed.
Bag and Panel Combination: Bale cover fabrication applied on the gin press and used
in combination with a top panel. After application, bagging is under bale ties.

7.0 TRANSPORTAION :
Transport is vital for the economic and industrial development of a country, since
every commodity produced requires transport from production and distribution stages.
Quick, cheap and convenient means of transport is essential for increasing distribution
and trade.
a) Head Loads :
It is an age old method of transportation from field. It is convenient for :
i) Places like hilly areas.
ii) Carrying small quantity of produce.
iii) Transporting nearest market with short distance.
b) Bullock / Camel carts :
Bullock / Camel carts are the primary means of transport in rural areas. It is
convenient for following reasons.
i) Cheap and easily available conveyance for the farmers to transport 5-10
quintals of produce to near by areas.
ii) Operational Cost is low.
iii) Easily manufactured by rural artisans from locally available materials.
iv) It is operated in muddy, katccha or sandy roads.
v) This transport system creates employment to rural artisans.

9
 c) Tractor trollys :
The use of tractor attached with a trolly is commonly used for transporting
cotton in many parts in India. It is convenient for :
i) Carrying large quantity of produce in lesser duration of time.
ii) Suitable in surplus producing areas than the trucks for carrying produce to
the primary assembling markets in the absence of pucca roads.
d) Trucks :
Bulk quantity of cotton are carried by the trucks to the distant places through
out the country.
It is convenient for following :
i) Easy availability.
ii) time saving.
iii) Quick movement of produce.
iv) Door to door delivery.
v) Less transit losses due to least handing while loading and unloading.
e) Railway transport :
i) Suitable for carrying larger quantity of cotton over long distances.
ii) Comparatively cheaper and safer mode of transport available through a
wide network of railways.

8.0 STORAGE :
Cotton in India is not generally stored for more than a year. This stored cotton is
apt to deteriorate in grade, colour and quality, the extent of deterioration depends upon a
number of factors, chief among them being the condition and period of storage, the
variety of cotton, the atmospheric conditions – especially humidity, rainfall, etc. –
prevailing during this period, ventilation and incidence of pests in the godowns, etc. The
godowns provided in the ginning factories are of different types as described below
Closed Type : This type of godown is closed with pacca walls on all four
sides with a door on one side. The flooring in most cases is covered with a layer of sand
or sometimes with stone slabs.
Open Type : This type of godown is covered only on one side and is kept
open on all the other three sides. The flooring is usually left unpaved. Both kapas and
lint packed in containers are stored.
Open Sheds : These are pacca sheds with galvanized iron sheet roofings
and open on all four sides. The flooring is covered mostly with sand.
R.C.C. Godowns: In all the terminal markets, most of the godowns for storing
cotton are pacca masonry structures with paved floors.

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COTTON’S, INSECTS, PEST AND DISEASES AND ITS CONTROL :
A) COTTON INSECTS:

Cotton insects are the principal cause of yield losses. Estimates indicate that the
yield losses due to insect infections would amount to almost 15% of world annual
production. More than 1300 different species of insect pests attack the crop. Although
numerous pest species attack cotton plants, most of the major pest species can be
organized into 5 specific groups. These groups includes:-
1. Helicoverpa bollworms
2. Other Bollwarms
3. Sucking Pests
4. Weeds
5. Diseases
Sr. Name of The Damage Control Measures
No. Pest
1. 2. 4. 5.
1. American The larvae feed on the leaves Spray HNPV @ 250 Ltr/ha from
Bollworm initially and then bore in to the 35th to 60th day of crop stage. The
(Helicoverpa square/bolls/pods and seeds best time to control bollworm is
armigera) with its head thrust into the when the larvae is up to 3 days
boll/pods, leaving the rest of the old.
body outside. entry holes are Apply Bt.K.I @ 1 kg/ha.
large and circular at the base of Use baited sex pheromone traps.
the boll/pod. Use the following insecticide
Endosulphon 35 EC
Quinalphos 25 EC
Carbaryl @ 50 WP 400-500 ml
Cypermethrin 10 EC 600-800 ml
Neem seed kernel extract (NSKE)
@ 5%
Neem oil 1%
2. Pink Bollworm The damage is caused by the 1) Hot water treatment of the
(Pectinophora caterpillars by feeding on the seeds up to 60oC kill the
gossypiella) flower buds, panicles and bolls. hibernating larvae.
The holes of entry close down 2) Treat the seeds with aluminium
by excreta of larvae which are phosphide.
feeding inside the seed kernels. 3) Use of tolerant varieties
They cut window holes in the (Khandwa-2, JKH-1, Abdhita,
two adjoining seeds thereby Sujay and Desi cotton).
forming "double seeds" and 4) Apply bacterial formulations Bt.K
finally damage them. The @1 kg/ha. Application of
attacked buds and immature insecticides like chloropyriphos 20
bolls drop off. Lint is destroyed, EC or endosulphon 35 EC or
ginning percentage and oil triazophos 40 EC @ 2.5 Ltr/ ha
content are impaired. spray.

11
1. 2. 4. 5.
3. White Fly The nymph(s) and adult(s) 1) Avoid late sowing and adopt crop
(Bemisia tabaci) feed on the cell sap, reduce rotation Use resistant varieties such
the vitality of the plant The as Supriya and Kanchana (LK -861)
vein becomes translucent and in endemic areas cultivars DCH-
and in many cases, it drops 32 and MPCH-1 having less nitrogen
off prematurely. Sooty mold contents in leaves.
contaminates the lint. 2) Apply insecticide monochrotophos
36 WSC or quinalphos 25 EC/methyl
demeton 25 EC at fortnightly
intervals.
3) Apply Neem oil+Teepol @ 3 - 3.5
litres + 500 mlt/ha.
Apply fish oil resin soap @ 14 -15
kg/ha.
4) Use Nirma ® washing powder
@0.1% as foliar spray.
4. Aphids (Aphis Both adults and nymphs 1) Avoid late sowing and excessive
gossypii) suck sap from the tender use of Nitrogen fertilizers.
leaves, twigs and buds, and 2) Destroy infested shoots during
weaken the plants. The early stages.
leaves curl up. Each aphid 3) Spray chemicals dimethoate 30
makes several punctures EC or phosphamidon 100 EC or
and excrete honeydew which methyl demeton 25 EC @ 500-750
encourages development of mlt/ha when the population reach
sooty mold on the twigs and ETL.
leaves, and this leaves a
blackened look of the plants.
5. Jassids Both adults and nymphs 1)Sow the crop early.
(Amrasca suck sap from underside of 2) Do not use high doses of "N"
biguttula) the leaves and devitalise the fertilizers.
plants. Leaves turn pale, red 3) Spray methyl demeton 25 EC or
rust, drop downwards and phosphamidon 100 EC or dimethoate
dry up when infestation is 30 EC @ 500-750 mlt/ha when ETL
severe. has reached (50-100 nymphs per 50
random leaves

6. Thrips (Thrips Leaves of seedlings become 1) Avoid late sowing.

tabaci) wrinkled and distorted with
white shiny patches, older
crop presents rusty
appearance from a distance

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 B) COTTON DISEASES:

Cotton diseases can be devastating, sometimes causing total crop failure.

Diseases can kill plants outright, or weaken them so that they are less resistant to
drought and insect attack. All stages of the standing crop are susceptible, as is the stored
produce. In general, cotton crops are less affected by diseases in the Asia Pacific region
than in the Americas, although disease resistance breeding is similarly less developed in
Asia Pacific countries.
Sr. Name of The Damage Control Measures
No. Disease
1. ALTERNARIA Affected leaves become dry and fall (1) The plant residues should be
LEAF SPOT off. The disease may cause cankers removed from the field.
(Alternaria on the stem. The infection spreads to (2) Carbendazim, Mancozeb 2.5 gm,
macrospora the bolls and finally fall off Copper Oxychloride 3gm in one litre of
and Alternaria water should be sprayed for 3-4 times
alternata) in every 15 days gap.

2. Anthracnose Fungus invades the lint and seed. 1) Avoid water logging. 2) Acid
Boll Rot, Lint becomes yellow or brown and delinting and treating the seeds with
(Colletotrichum gets clumped into a mass of fibre. Captan or Carbendazim or Benomyl
gossypii) Badly affected seeds are light, @ 3-4gm/kg of seed. 3) Spraying with
brown, poorly developed and usually Carbendazim or Benomyl or
do not germinate. Mancozeb or Captan @1gm in one lit
of water con trols the disease.
3. BLACK ROOT It causes stunted cotton growth early Delay planting until soil temperatures
ROT, in the season and, in effect, ‘steals are at least above 16°C avoids over-
(Thielaviopsis time’ from the crop. This damage to watering on heavy clay soils rotate
basicola) the outer layers of the root reduces fields with non-host crops such as
the plant’s capacity to absorb cereals.
nutrients. Infection also reduces
colonisation of the roots by VAM
(beneficial fungi).
4. BLIGHT As disease progresses, leaf petioles 1) Use blight resistanct varieties
(Xanthomonas and stems may become infected Preventative Actions for Bacterial
campestris pv. resulting in premature defoliation Blight of Cotton:
Malvacearum) Black cankers may girdle the stem or Plant high-quality, disease free, acid
branches causing the portions to die delinted seed.
above the canker. Bolls may become
infected causing boll rot which results
in rotted seed and discolored lint.
5. FUSARIUM Under the optimal conditions for 1) Seed treatment with Carbendazim
BOLL ROT disease development, all the affected @ 2 g/kg seeds should be given.
(Fusarium spp.) plants succumb and shed before the 2) Use of potassium fertilizers should
stem dries- out and dies. be encouraged. 3) Resistant varieties
such as DB-312 , AKA-5 , Sanjay ,
Virnar, Daulat, Jyoti, Jayadhar, Vijalpa,
Sujaya, Digvijay, G cot-11, G cot-13 ,
PA-32 should be preferred over
others.

13
9.0 IMPORTANT ASSEMBLING MARKETS:
The following are the major assembling markets for cotton producing states in the
country.
Major Markets For Cotton Producing States
Name of State Name of the markets
Andhra Pradesh Guntur, Adilabad, Warangal, Khammam, ,Nirmal
Gujarat Keshod, Bardoli, JetpurPavi, Gondal, Balasienor, Rajkot, Babra,
Amreli, Sabarkantha, Visnagar, Vijapur, Halvad, Unai,
Manavadar, Bevla,Mansa.
Haryana Hisar, Fatehabad, Sirsa, Bhiwani, Rohtak, Panipat, Jind, Kaithal,
Gurgoan
Karnataka Bailhogal, Bellary, Bijapur, Gadaj, Haliyal, Hubli, Kottur,
Jamkhand, Raichur, Ranebennur, Savadatti, Shimoga, Yellapur
Madhya Pradesh Badwani, Betul, Chindwara, Dhar, Dewas, Harda, Jhabua,
Khandwa, Khargone, Ratlam, Shajapur
Maharashtra Nagpur, Narkhed,Nanded, Yatmal, Hinganghat, Wardha,
Pulgaon,Akola, Amaravati, Murtizapur,Aurangabad, Dhule,
Jalgaon
Orissa Roygoda, Karaput, Kalahandi, Navaranpur, Bolangir, Dhenkenal,
Ganjam
Punjab Bhatinda, Ferojpur, Sangur, Muktsar, Faridkot, Mansa.
Rajasthan Hanumangarh, Pili Banga, Sriganga– nagar, Palampur, Sangriya,
Suratgarh, Sri Vijayanagar, Shadulshakar, Rawatsar, Kherthal,
Bijaynagar, Rajsighnagar.
Tamilnadu Cuddallore, Billupuram, Vellore, Thiruvannamalai, Salem,
Dharampuri, Coimbatore, Erode, Tiruchilapalli, Thanjavur,
Pudukottai, Dindigul, Madurai, Theni, Virudhanagar, Tirunelveli

10.0 MARKETING CHANNELS :

Marketing channel is a group of inter related intermediaries who market the
produce from the farmers to consumer. Private and institutional channels are the
important marketing channels in the movement or distribution of major agricultural
commodities.

It has been estimated that about 80 per cent of the marketed surplus of kapas and
lint is handled by the private marketing channels and the remaining 20 per cent by the
institutional marketing channels including co-operatives and Cotton Corporation of India.
The most prevalent institutional channels are.
1. Channel-I : Producer ¼ Village trader ¼ itinerant trader ¼ Wholesaler (in
regulated market) ¼ Miller ¼ Consumer.

14
2. Channel-II : Producer ¼ Village trader/merchant ¼ Commission
Agent ¼ Miller ¼ Consumer.
3. Channel-III : Producer ¼ Village merchant ¼ Itinerant trader ¼ Miller ¼
Consumer.
4. Channel-IV : Producer ¼ Village trader ¼ Wholesaler (in unregulated
market) ¼ Lint market ¼ Commission Agent ¼ Miller ¼ Consumer.
5. Channel-V : Producer ¼ Cooperative Society ¼ Cooperative Ginning and
Pressing Factory ¼ Terminal Market ¼ Miller ¼ Consumer.
6. Channel-VI : Producer ¼ Cooperative Marketing Federation ¼ Terminal
Market ¼ Consumer.
7. Channel-VII : Producer ¼ State Govt. Agencies ¼ Central Govt. Procurement
Agencies (CCI) ¼ Miller ¼ Consumer.

it is observed that the following three channels are also in existence in addition to
above.

I : Producer ¼ Trader ¼ CCI ¼ Miller ¼ Consumer.

II : Producer ¼ CCI ¼ Miller ¼ Consumer.
III : Producer ¼ Miller ¼ Consumer.

Among the above channel, No. 7 is the most common institutional channel
followed by channel No.6.

11.0 MARKET INFORMATION AND EXTENSION SERVICE :

Marketing information plays an important role in planning production and
marketing of the produce by the farmers. It is also necessary for the market participants
in arriving at optimal trading decisions. The availability and dissemination of marketing
information is the basic necessity for achieving both operational and pricing efficiency in
the marketing system.

‰ Marketing Information:
Agricultural Marketing Information comprises of collection, analysis, compilation and
dissemination of agricultural marketing related information to the farmers for modern
market oriented farming by improving the quality and productivity of the produce. To
improve this entire system Directorate of Marketing and Inspection under Ministry of
Agriculture, Govt. of India has started supplying of information on the website namely
www.agmarknet.nic.in.

‰ Marketing extension:
Marketing extension is a tool to educate and grow awareness among the farmers and
other beneficiaries in the chain of marketing system.

15
 GOVT. AND SEMI GOVT. ORGANIZATIONS PROVIDING SERVICES ON
MARKETING INFORMATION AND EXTENTION
Sl. Organization and it’s website Services provided
No.
1. Directorate of Marketing and )To promote grading of agricultural produce under
Inspection (DMI), the Agricultural Produce (Grading & Marking)
Head Office, Act, 1937.
CGO Complex N.H.IV, )To facilitate the construction of marketing
Faridabad-121 001. infrastructure of agricultural produce.
)To render advice on statutory regulation,
Website:www.agmarknet.nic.in development and management of agricultural
markets by states/U.Ts.
)Marketing research, surveys and planning.
)To train personnel in agricultural marketing.
2. Agricultural and Processed Food )Promote export of agricultural commodities and
Export Development Authority it’s products to foreign countries.
(APEDA), Head Office, 4, Siri )Adopting standards and specifications for the
Institutional Area, Opp. Asiad purpose of export of schedule products.
Village, August Kranti Marg,
New Delhi-110016.
Website :www.apeda.com
3. National Horticulture Board, )To develop post harvest infrastructural facilities
Plot No.-85, Sector-18, Institutional for horticultural commodities
Area, Gurgaon-122015
Website:www.hortibizindia.nic.in
4. Ministry of Food Processing )Grant and support for food park component
Industries (MOFPI), which in turn also help in setting up of Agri Export
Panchsheel Bhawan, Zone.
New Delhi.
Website : www.mofpi.nic.in
5. National Agricultural Cooperative )To act as a nodal agency for implementing the
Marketing Federation of India market intervention scheme.
Ltd.(NAFED), Head Office,
1,Siddarth Enclave, Ashram Chowk,
ring Road, New Delhi.
Website : www.nafed-india.com
6. State Marketing Boards )Regulation management and development of
at State Capitals. marketing in concerned state.
)To implement different schemes on agricultural
marketing.
)To co-ordinate functioning of all market
committees.
)Grading of agricultural produce.
)Publicity on regulated marketing of agro produce.
7. Agricultural Produce Market )For better marketing of agricultural produce the
Committees (APMCs) regulated APMC provide the following facilities :
markets of different )Facilitates drying of produce.
states. )Providing grading, weighing and storage facilities
of produce, brought to APMC complexes.

16
12.0 ALTERNATIVE SYSTEMS OF MARKETING :

I) DIRECT MARKETING :

Direct marketing involves sale of cotton by producer to the consumer / miller

directly without any middleman. It enables producers and millers and other bulk buyers
to economize transportation cost and improve price realization. The Direct Marketing
system enables the farmers to meet specific demands of wholesalers or traders from the
farmer’s inventory of graded and certify produce on one hand and of consumer according
to consumer’s preference on the other hand helps the farmers to take advantage of
favourable prices.

Benefits of Direct Marketing

$ It increases price realization of the producer.

$ It minimizes marketing cost, transportation cost.
$ It encourages distributional efficiency.
$ It satisfies the consumer through better quality of produce at reasonable price.
$ It encourages direct interaction between producers and consumers.
$ It encourages the farmers for retail sale of their produce, thus their involvement in
marketing process and help in discovering the demand of markets for future market
oriented planning.

II) CONTRACT FARMING :

Contract farming is an agreement between buyer and producer for the purchase of
produce at mutually agreed price under forward agreement. In such arrangement, the
purchaser, may be exporter or processing unit, generally provides inputs, technical know-
how and financial support. Thus sharing the risk by both the, buyers and sellers. “It is an
approach that can contribute to increased income to farmers, avoidance of risk of
adverse price fluctuation, and higher profitability to sponsors”.

Contract marketing ensures continuous supply of quality produce at mutually

contracted price to contracting agencies, as well as ensures timely marketing of the
produce. Contract marketing is beneficial to both the parties i.e. farmers and the
contracting agencies (Annexure – III).

Benefits :

" Sharing and minimizing the price risk due to future fluctuations.
" It promotes use of quality seeds, inputs and new technology resulting in to assured
quality produce.
" It ensures regular and timely payments through bank tie up, assured quality supply
to buyers / processors.
" It minimizes malpractices by elimination of middlemen.
" It strengthens mutual relationship between producers, sellers and buyers.

17
III) COOPERATIVE MARKETING :

“Cooperative marketing” is the system of marketing in which a group of producers

join together and register them under respective State Cooperative Societies Act to
market their produce jointly. The members also deal in a number of cooperative
marketing activities i.e. processing of produce, grading, packing, storage, transport,
finance, etc. The cooperative marketing means selling of the member’s produce directly
in the market, which fetches best prices. It helps the member to produce better quality of
produce, which has good demand in the market. It also provides clean handling, fair trade
practices and protect against manipulations / malpractices. The main objectives of
cooperative marketing are to ensure remunerative prices to the producers, reduction in
the cost of marketing, eliminates the monopoly of traders and improve the marketing
system. The cooperative marketing structure in the different states consists of ;
1. PMS (Primary Marketing Society) at the Mandi level
2. SCMF (State Cooperative Marketing Federation) at the State level
3. NAFED (National Agricultural Cooperative Marketing Federation of India Ltd.)

IV) FORWARD AND FUTURE MARKETS :

Forward and future markets are important tools of price stabilization and risk
management. Extension of future markets to all major agro-commodities was reflected in
the National Agricultural Policy of Government of India.

The forward market supports two economic functions, namely price discovery
and price risk management, which enables the traders and stockiest to protect against
the risk of adverse fluctuation of prices. It is governed in India under the Forward Contract
Regulation Act, 1952.

The future market facilitates the trading of agricultural commodity for the
purchase or sale of the commodity for future delivery, where contracts are made on a
future exchange on the basis of standard quality, quantity, delivery time, locations and the
price. The Central Govt. determines the policy by which the future trading is permitted
and recognized for a particular commodity.
Benefits:
" Price risk management of an agricultural commodity e.g. Cotton.
" Facilitates production, and improve the quality of produce.
" Acts as a price barometer to farmers and other trade functionaries.
" It benefits indirectly to the exporters / farmers through better information,
lower and more stable marketing and processing margins.
" It gives an idea of prices to the Traders, which enable them to enter forward
contract margins.
" It promotes an integrated price structure through out the country.

18
13.0 INSTITUTIONAL CREDIT FACILITIES :
i) Pledge finance system :

The Indian farming community mostly consists of small and marginal farmers.
They do not have the economic strength to retain the surplus produce till favourable
market price, and often compelled to sell their produce immediately after harvest, when
the prices are low. The solution to this problem lies in providing safe and scientific
storage of their produce and availing easy marketing credit against the stored produce.
Hence, the systems of pledge finance have emerged as an unique avenue of finance to
farmer’s.

Facilities of loan under pledge Finance System.

1 2 3 4
As per guidelines of Reserve Person can avail It is determined Commercial Bank/
Bank of India, loan/advances this facility of pledge by respective Cooperative Banks/
can be given against loan by storing their banks. Regional Rural
hypothecation / pledge of produce in cold Banks.
Agricultural . Produce storage.

ii) Others : Following types of credit facilities are available for production, post
harvest operations & marketing of agro-commodities.

Name of scheme Eligibility Facility

1. 2. 3.
Produce Marketing All the categories of farmers This type of loan is given upto 1 lakh against
Loan scheme. i.e., small / marginal / others pledge/hypothecation of agricultural produce
are eligible. for a period not exceeding 6 months.
Kissan Credit card All types of agricultural Kissan credit card is valid for 3 years
Scheme. clients having good track through which the barrower/farmer can meet
record for last two years are his production and other contingency needs
eligible. by using easy convenient withdrawal slips.
The minimum credit limit is Rs.3000/- and
based on operational land, holding, cropping
pattern.
Crop Loan. All categories of farmers i.e. Provides financial assistance to meet
Small/ Marginal and others cultivation expenditure for various crops
are eligible including cotton as short term loan
Agricultural Term All categories of farmers It is provided to the activities i.e. land
Loans. and agricultural labourers development, minor irrigation, farm
are eligible for this loan mechanization, horticulture, dairying, etc.
provided they should This loan is officered in the form of direct
possess the necessary finance to farmers with a repayment span
experience in this activity. not less than 3 years and not exceeding 15
years.

19
 1. 2. 3.
Self-help Groups S.H.Gs are the self managed Self –help groups are supplemented by
(SHGs) linkage homogeneous group of bank credit when these groups gain
credit programme. economically backward people experience.
who promote savings among
themselves and can pool their
agricultural activities.
National On compulsory basis : All farmers Provides insurance coverage and
Agricultural producing notified crops and financial support to the farmers in case
Insurance availing Seasonal Agricultural of failure of any notified crop due to any
Scheme Operational (SAO) loans from natural calamities, pests and diseases.
(NAIS) financial institutions i.e., loanee It also encourage the farmers to adopt
farmers: progressive farming high value inputs
and high agricultural technology.
Besides, it helps to stabilize the farm
income during disaster years.

14.0 ORGANIZATIONS / AGENCIES PROVIDING MARKETING

SERVICES :
The names of the Govt., Semi Govt. and state Govt. organizations who
provide and assist marketing services like procurement, grading, storage and processing
in the field of cotton are given beow:
Sl. Name of the Organization / Services Provided
No. Agencies
1. 2. 3.
1. Directorate of Marketing ) To integrate development of marketing of agricultural
and Inspection (DMI) NH-4, and allied produce in the country.
CGO Complex, ) Promotion of standardization and grading of agricultural
Faridabad – 121 001 and allied produce.
) Liaison between the Central and State Governments
Website : through its regional offices (11) and sub-offices (37)
www.agmarknet.nic.in spread all over the country.
) Human resource development through various training
programmes for better marketing.
) Assisting State authorities in dissemination of market
informations (MRIN)
2. Food Corporation of India ) Procurement of foodgrains for effective price support
(FCI), Barakhamaba Lane, operations for safeguarding the interest of the farmers.
Cannaught Place, New ) Distribution of foodgrains throughout the country for
Delhi-110001 Public Distribution System, especially to Below Poverty
Line (BPL) population.
Website : www.fciweb.nic.in ) Maintains satisfactory level of operational/buffer stocks
of foodgrains to ensure National Food Security.
3. Central Warehousing ) Provides scientific storage and handling facilities.
Corporation (CWC) ) Offers consultancy services/training for the construction
4/1 Siri Institutional Area, of warehousing infrastructure to different agencies.
Opp.Siri Fort ) Import and export warehousing facilities.
New Delhi-110016 ) Provides disinfestations services.
Website : www.fieo.com/cwc/

20
1. 2. 3.
4. Agricultural and Processed ) Development of scheduled agriculture products related
Food Products Export industries for export.
Development Authority ) Provides financial assistance to these industries for
(APEDA) conducting surveys, sensibility studies, relief and
NCUI Building 3, Siri subsidy schemes.
Institutional Area August ) Registration of exporters for schedule products on
Kranti Marg, payment of nominal.
New Delhi-110016 ) Adapting standards and specification for the purpose of
export of scheduled products.
Website : ) Carrying out inspection of meat and meat products for
www.apeda.com ensuring the quality of products.
5. National Co-operative ) Planning, Promoting and Financing Programmes for
Development Corporation production, processing, marketing, storage, export and
(NCDC) import of agricultural produce.
4, Siri Institutional Area, ) Financial support to Primary, Regional, State and
New Delhi-110016 National level co-operative marketing societies is
provided towards;
Website : i) Margin Money and Working Capital Finance to
www.ncdc.nic.in augment business operations of agricultural produce.
ii) Strengthening the share capital base and
iii) Purchase of transport vehicles.
6. Director General of Foreign ) Provides guidelines / procedure for export and import of
Trade (DGFT) various commodities.
Udyog Bhavan, New Delhi ) Allot import-export code number (IEC No.) to the
Website exporters of Agricultural commodities.
:www.nic.in/eximpol
7. State Agricultural Marketing ) Implementation of the regulation of markets in the state.
Boards (SAMBs), At State ) Provide infrastructural facilities for the marketing of
Capitals notified agricultural produce.
and Marketing Directorates ) Provide grading service in the markets.
) Co-ordinate all the market committees for providing
information services.
) Provide aid to financially weak or needy market
committees in the form of loans and grants.
) Eliminate malpractices in the marketing system.
) Arrange seminars, workshops or exhibitions.
) Some of the SAMBs are also promoting agro-business.

21
15.0 DO’S & DON’TS :

DO DON’TS
1) Seed Cotton should be collected from 1) The practice of collecting half open
fully opened bolls only. bolls, drying them and removing the
seed cotton should be discouraged.
2) Picking should be done early in the 2) Picking should be avoided in hot mid
morning & evening. day & when the weather condition is
wet.
3) Keep the seed cotton from last picking 3) Cotton of different picking should not
separately for marketing. be mixed as this generally lowers the
quality.
4) Seed cotton should be heaped on a 4) Seed cotton should not come into
cloth or gunny or paper spread direct contact with the soil to avoid
before transportation to market. increase its trash content.
5) Seed cotton should be dried in shed. 5) Never expose seed cotton to excess
sun as it lowers the grade due to
yellowing.
6) Get the market information regularly 6) Never market the produce without
from www.agmarknet.nic.in Website, collecting market information
news paper, T.V. concerned APMC regarding price trend etc.
office before marketing.
7) Avail the facility of future trading & 7) Never sale the produce at fluctuating
forward contract to avoid price risk. price in a glut situation.
8) Select the shortest & efficient 8) Never select a longer marketing
marketing channels to get higher channel.
share in marketing.
9) Use proper packaging material. 9) Use of in proper packaging material
causes loss during transport &
storage.
10) Follow the export rules & regulation 10) Do not keep any lacunae in export
properly during export. procedure.

22
 ANNEXURE - I
COTTON GRADING AND MARKING RULES

1. Short title and application.- (1) These rules may be called the Cotton Grading &
Marking Rules, 1971.
(2) They shall apply to the varieties of cotton which are grown in India and which are
specified in Schedule I.
2. Definitions :- In these rules:
(1) “Schedule” means a schedule annexed to these rules;
(2) False or fraudulent packing’ means packing of a bale of Cotton;
(a) In such a manner as to contain in different parts of the bale, cotton of
different growths or varieties, or cotton of materially different staples, or cotton
of different crops; or
(b) in such a manner as to contain in any part of the bale, any by-products such
as waste, fly, or other by –products of a cotton mill available after raw cotton is
passed through the blow room ; or
(c) in such a manner as to contain in any part of the bale any concealed
substance other than raw cotton; or
(d) in such a manner as to contain interiorly cotton decidedly inferior to that
upon the exterior and not readily detectable on the customary examination.
3. Grade Designation and quality .- (1) The grade designations of the varieties of
Cotton specified in Schedule I shall be as specified in column I of Schedule II and the
special characteristics and the general characteristics indicated by the grade
designations shall be specified in column 2 and 3 respectively of Schedule II.
(2) The grade designation referred to in sub-rule (1) shall be applied only to cotton in
full pressed bales.
4. Grade Designation marks . -(1) The grade designation mark shall consist of a label
specifying the grade designation and bearing a design consisting of an outline map of
India with the work "AGMARK" and the figure of the rising sun with the words"
produce of India" and "" resembling that set out in Schedule III.
(2) The design and grade designation shall be of the following colour :-
Grade designation Color of designation and Lettering of label
Agmark Certified Red
Pedigreed
Agmark Certified Black
5. Method of Marking:- (1) The grade designation marks shall be placed against one or
the other of the flat sides of bale, shall be fixed to the hessian cloth wrapper and shall
be held securely in position by at least 3 hoops.
(2) The grade designation mark shall clearly show the date of pressing, variety of
cotton and place of cultivation (Block/District/State.)
(3) The affixing of the grade designation mark on an end hessian or an unlashed side
of a bale shall not be deemed to fulfil the requirements of this rule.
6. Method of packing.-(1) The cotton shall be packed in bales in the manner customary in
the trade.
(2) There shall be no false or fraudulent packing of the bales.
23
 SCHEDULE I
(See rules 1 (2) and 3)

List of varieties of cotton approved for Grading under Agmark

1. A. 51-9 (Narmada) 30. Maljari 59. J.34

2. Adonicum 31. M.C.U. 1 60. Krishna
3. AK-235 32. M.C.U. 2 61. MCU-4
4. AK-277 33. M.C.U. 3 (9030-G) 62. MCU-5
5. Andrews (Extra long stapples) 34. N-14 63. Mysore-14
6. Badnawar I (C.T.I. 4-27) 35.Parbhani American I 64. Pramukh
7. Buri 147 36. Raniben. 65. PRS 72
8. Buri 0394 37. Sanjay 66. Raichur-51
9. C. Indore-I 38. Selection 69 67. Sea Island Andrews
10. C. Indore-2 39. Sulti-Vijalpa. 68. Sujata
11. Coconandas-2 40. Suyodhar. 69. Varalakshmi
12. Deviraj (170-C02) 41. V. 797 70. Y I
13. Ganganagar I 42. Vijay & Digvijay 71. Sujay 3943
14. Gaorani 6 43. Virnar (including Jarila) 72. SRT-I
15. Gaorani 12 44. Western I 73. DHY 286
16. Gaorani 22 45. 35/1 74. AKH-4
17. Gaorani46 46. 134-Co2-M 75. Mysore Vijaya
18. Gujrat-67 47. 170-Co2 76. Bhagya
19. H. 14 48. 216 –F 77. MCU –6
20. Hybrid-4 49. 231-R 78. K-7
21. Jayadhar 50. 320-F 79. K-8
22. K-2 51. Bharathi * 80. Suvin
23. K-5 52. Buri-1007 81. CBS-156
24. K-6 53. Digvijai 82. H. 655
25. Kalyan 54. G-27 83. H-777
26. Laxmi 55. Hampi 84. Pramukh
27. LL. 54 56. H-420 85. SH-131
28. L.S : S. 57. Khandwa-I 86. Lohit
29. M.A. 5. 58. Khandwa-II 87. Shyamlee

24
 SCHEDULE-II
(See Rules 3)
Grade designations and definition of quality of Cotton

Grade Definition of quality (for the varieties of Cotton General

Designation included in Schedule I) characteristics
Agmark (a) Shall be the product derived from (seed cotton indicated kapas (a) Shall
Certified in Schedule I grown on a Government farm or by a registered consist of lint (in
Pedigreed seed grower licensed by the appropriate Government full pressed
(Red Label) department or by bales obtained
other agency to be recognized by the Agricultural Marketing by machine
Adviser to the government of India for the purpose and which ginning of the
had been derived from pure seed supplied by a Government kapas:-
Department or by any other agency to be assigned by the (b) shall be clean
Agricultural Marketing Adviser to the Government of India for and reasonably
the purpose and crop of which shall have been inspected and free from any
recognized wherever necessary and duly certified by the leaf, seed, stain
appropriate Government Department or by any other agency or other
to be recognized by the Agricultural marketing Adviser to the imperfections;
Government of India, for the purpose as being at least 98% (c) shall be dry
pure: and and free from a
(b) Shall have been ginned and pressed under direct trace added
supervision of the appropriate Government Department or by moist
any other agency to be recognized by the Agricultural
Marketing Adviser to the Government of India for the
purpose.
Agmark (a) Shall be the product derived from kapas (seed cotton) (a) Shall consist
Certified indicated in Schedule I grown on a Government farm or by a of lint (in full
(Black Label) registered seed grower licensed by the appropriate pressed bales)
Government Department or by any other agency to be obtained by
recognized by the Agricultural Marketing Adviser to the machine ginning
Government of India for the purpose and which had been of kapas.
derived from pure seed supplied by a Govt. seed department (b) Shall be
or by any other agency to be recognized by the Agricultural clean and
Marketing Adviser to the Government of India for the purpose reasonably free
and the crop of which shall have been inspected in the field from leaf, seed,
and duly certified by the appropriate Govt. department or by stain or
any other agency to be recognized by the Agricultural imperfection.
Marketing Adviser to the Government of India, for the ( C ) Shall be dry
purpose as being at least 98% pure; and and free from
(b) shall have been ginned and pressed under the direct any trace of
supervision of the appropriate Government Department or by added moisture.
any other agency to be recognized by the Agricultural
Marketing Adviser to the Government of India for the
Purpose.

25
 ANNEXURE - II
COTTON SEEDS GRADING AND MARKING RULES

1. Short title, application and commencement :-

(1) These rules may be called and Cotton Seeds Grading and Marking Rules, 1982.
(2) They shall apply to cotton seeds produced in India.
(3) They shall come into force on the date of their publication in the Official Gazette.
2. Definitions :- In these rules, unless the context otherwise requires :-
(1) "Agricultural Marketing Adviser" means the Agricultural Marketing Adviser to the
Government of India.
(2) "Schedule" means a Schedule appended to these rules;
(3) "Authorised packer" means a person or a body of persons who has been granted a
Certificate of Authorisation by the Agricultural Marketing Adviser for getting the commodity
graded and Agmarked in accordance with grade standards and procedure prescribed
under the rules;
(4) "Certificate" means Certificate of Authorisation.
3. Grade designation :- The grade designation to indicate quality of the cotton seeds shall be as
set out in column I of Schedule I.
4. Definition of quality :- The quality indicated by the grade designation shall be as set out
against each grade designation in column 2 to 8 of Schedule I.
5. Grade designation mark :- The grade designation mark shall consist of a label specifying the
grade designation and bearing a design consisting of an outline map of India with the word
"AGMARK" and figure of the rising sun with the words "Produce of India" and ^^Hkkjrh; mRikn**
resembling the mark as set out in Schedule-II.
6. Method of marking :-(1)The grade designation mark shall be securely affixed to each package
in a manner approved by the Agricultural Marketing Adviser.
(2) In addition to the grade designation, the following particulars shall also be clearly marked
on the label:-
(a) Date of packing;
(b) Lot number;
(c) Net weight; and
(d) Any other particulars, as may be specified by the Agricultural Marketing Adviser from time
to time.
(3) The authorised packer may, after obtaining the prior approval of the Agricultural Marketing
Adviser, mark his private trade mark on a container in a manner approved by the said
officer, provided that the private trade mark does not represent a quantity or grade of
Cotton Seed different from that indicated by the grade designation mark affixed to the
container in accordance with these rules.
7. Method of Packing :-
(1) Cotton seeds shall be packed in new B.- Twill jute bags or any other type of container and
in such capacity and in such manner as may be specified from time to time by the
Agricultural Marketing Adviser.
(2) Packing material shall be clean and dry free from fungus contamination and insect
infestation and obnoxious smell.
(3) Each package shall contain cotton seeds of the same variety and of the same grade
designation.
(4) Each package shall be securely closed and sealed in the manner prescribed by the
Agricultural Marketing Adviser.
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 SCHEDULE-I
(See Rules 3 and 4)
Grade designations and definition of quality of Cotton Seeds

Grade Definition of quality General

Designa- Special Characteristics characteristics
tion Percent by weight (Maximum)
Foreign Damaged Immature Weevilled Linters Moisture
matter seeds Shriveled seeds
and dead
seeds
1 2 3 4 5 6 7 8
I 1.0 1.0 2.0 0.5 4.0 10.0 The cotton seeds
II 3.0 2.0 4.0 1.0 6.0 10.0 shall :-
III 5.0 4.0 6.0 1.5 10.0 10.0 i) be obtained from
the plant of
Gossypium species;
ii)be well developed,
mature, clean and
dry;
iii)be reasonably
uniform in
shape, size and
colour; iv)be free
from dirt, obnoxious
smell, deleterious
substances, insect
infestation,
visible mould attack
and rodent
contamination
except to the extent
provided under
special
characteristics.

Definitions :-
1. Foreign matter : shall be stones, lumps of earth, straw, chaff, stems, any other edible or
non-edible seeds or any other foreign material.
2. Damaged Seeds : shall be the seeds which are internally damaged or discoloured or
broken materially affecting the quality.
3. Immature, shrivelled and dead seeds : shall be the seeds not properly developed and/or
shrunken. Dead seeds shall be those seeds which can easily be crushed, if crushed
between two fingers.
4. Weevilled seeds : shall be the seeds which are wholly or partly bored or eaten by the
weevils.
5. Linters : shall be the seeds with adhered fuzz or short lint.

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 SCHEDULE-II

(See rule 5)

Grade designation mark

E OF
UC IN
D

D
PR

IA
(Published in the Gazette of India Part-II, Section 3(i) under G.S.R. 60, dated 15-1-1983)

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 ANNEXURE - III
MODEL AGREEMENT FOR CONTRACT FARMING
(All clauses of the agreement are subject to the respective explanatory notes given under “Contents
of a model contract farming agreement)
1. Parties to the Agreement
This agreement is executed Between Contract Farming Sponsor, herein after called Party of
the First part. and
Contract Farming Producer/s herein after called Party of the Second part At__________ on
this _________ day of ________(year), on terms and conditions hereinafter mentioned.
2. Description of Farm land covered by the agreement
The party of the Second part agrees to produce and deliver to the party of the First part and
the party of the First part agrees to buy from the party of the Second part, the items of the
agricultural produce described in clause 4, on the lands mentioned (owned/cultivated) below :-
3. Duration of the Agreement
The agricultural produce mentioned in clause 4 will be supplied to the party of the First part
within a period of ___________ Months/Years from the date hereof. OR This agreement is
between the party of the First part and party of the Second part for agricultural produce
described in clause 4 for a period of _____________ Months/years.
4. Description of Farm Produce
The party of the Second part agrees to produce for the party of the First part, the items of
agricultural produce mentioned below as per Schedule 1 annexed herewith.
5. Quantity Specification
The Second party agrees to supply quantity mentioned in the schedule 1, to the First party.
6. Quality Specifications of Commodity Contracted
The Second party agrees to supply the quantity contracted according to the quality
specifications stipulated in Schedule 1. It the agricultural produce is not as per the agreed
quality standards, the party of the First part will be entitled to refuse to take the delivery of the
agricultural produce only on this count. Then
a) The party of the Second part shall be free to sell the produce to the party of the First
part at a mutually re-negotiated price
OR
b) In open market (to bulk Buyer viz. exporter/ processor/manufacturer etc.) and if he
gets a price less than the price contracted, he will pay to the party of the First part, for
his investment proportionately less
OR
c) In the market yard and if the price obtained by him is less than contracted price, then
he will return proportionately less for the party of the First parts investment.
In the event the party of the First part refuses/fails to take the delivery of the contracted
produce for his own reasons then the party of the Second part will be free to sell the produce in the
open market and if the price received is lower than the contracted price the difference will be on
account of the party of the First part and shall be recoverable as per the procedure of law.
b) Cultivation/Input Specifications.
The party of the Second part agrees to adopt instructions/practices in respect of land
preparation, nursery, fertilization, pest management, irrigation, harvesting and any
other, as suggested by the party of the first part from time to time.
b) Crop Delivery Arrangements
Buying will be as per the following terms and buying slips will be issued immediately
after the purchase.
Date Delivery point Cost of delivery
29
 It will be the responsibility of the party of the First part to take into possession the contracted
produce at the delivery point agreed after it is offered for delivery and if he falls to take delivery within
____________ period then the party of the Second part will be free to sell the agriculture produce
contracted.
b) In the bulk buyer viz. exporter/ processor/ manufacturer etc.), and if it gets a price less
than the price contracted, it will pay to the party of the First part for his investment
proportionately less.
OR
b) In the market yard, and if the price obtained is less than the contracted price then it will
return proportionately less to party of the First part for his investment. Quality
maintenance in transit will be the responsibility of the party of the First part.
9. Pricing Arrangements
The party of the Second part will be paid as per the price/rate mentioned in Scheduled 1 when
his crop has been harvested and delivered to the party of the First part and all outstanding advances
given to him have been deducted. The following schedule shall be followed for the payment.

Date Mode of payment Place of payment

10. Insurance Arrangement.

The party of the First part and the party of the Second part shall insure the contracted produce
mentioned in clause 4, for the period of ________ against the risk of losses due to acts of Gods,
destruction of specified assets, loan default and production and income loss and all other acts or
events beyond the control of the parties, such as very low production caused by the serious outbreak
of a disease, epidemic or by abnormal weather condition, floods, drought, hailstom, cyclones,
earthquakes, fire or other catastrophes, war, acts of Government, action existing on or after the
effective date of this agreement which prevent totally or partially the fulfillment of the obligation of the
farmer. Upon request, the party of the Second part invoking such acts shall provide to the other party
confirmation of the existence of facts. Such evidence shall consist of a statement of certificate of the
appropriate Government Department. If such a statement or certificate cannot reasonably be
obtained, the party of the Second part claiming such acts may as substitute, thereof, make a notarial
statement describing in details the facts claimed and the reasons why such a certificate or statement
confirming the existence of such facts. Alternatively, subject to the mutual agreement between the
two parties, the party of the Second part may fill his quota of the produce through other sources and
the loss suffered by him thereby due to price difference, shall be shared equally between the parties,
after taking into account the amount recovered from the insurance company. The insurance premium
shall be shared equally by both the parties.
11. Support Services to be Provided by the Party of the First Part.
The First party of the agreement hereby agrees to provide following services to the Second
party during the period of cultivation and post harvest management.
12. Farmer-Management Forum.
The party of the First part or it’s representatives agrees to have regular interactions with the
farmers forum set up/named by the party of the Second part during the period of contract.
13. Monitoring Quality and Yields.
The party of the First part or it’s representatives shall have the right to enter the
premises/fields of the party of the Second part to monitor farming practices adopted and the
quality of the produce from time to time.
14. Registration of Contract farming Agreements and Dispute Resolution Mechanism.
The party of the First part confirms that he has registered himself with the Registering
Authority ____________ on _________ and shall pay the fees in accordance with the law

30
 prevailing in this regard to the Registering Authority which has jurisdiction to regulate the
marketing of agriculture produce which is cultivated on the land described in clause2. OR
The party of the First part has registered himself on _____________ with a single point
registration Authority namely ____________ prescribed by the State in this regard. The fees
levied by the respective Registering Authority shall be borne by the party of First part
exclusively and will not be deducted in any manner, what-so-ever, from the amounts paid to
the party of the Second part.

In the event of any dispute or difference arising between the parties hereto or as to the rights
and obligations under this agreement or as to any claim, monetary or otherwise of one party
against the other or as to the interpretation and effect of any terms and conditions of this
agreement, such dispute or difference shall be referred to arbitration authority constituted for
the purpose or Authority declared by State Government in this regard.
15. Indemnity in favour of party of the Second part.
The party of the First part will have no rights whatsoever as to the Title, Ownership,
Possession of the land/property of the party of the party of the Second part which is
particularly described in clause 2, of this agreement nor will it in any way alienate the party of
the Second part from the land property particularly described in clause 2, not mortgage, lease,
sublease or transfer the land property of the Second party in any way to any other
person/institution.
16. Submission of Agreement for Registration.
Copy of this agreement signed by both the parties will be submitted within a period of 15 days
by the party of the First part with the __________________ market committee/ registering
authority as required by the APMR Act/ any other registering authority prescribed for the
purpose.
17. Dissolution of Contract.
Dissolution of Contract will be with consent of both the parties and such dissolution deed will
be communicated to the registering authority within 15 days of such dissolution.
18. Change of address of either parties.
In case of change of address of a party, it should be intimated to the other party and also to
the Registering Authority.

Each party hereto will act in good faith diligently and honestly with the other in the
performance of their responsibilities under this agreement and nothing will be done to
jeopardize the interest of the other.
In witness whereof the parties have signed this agreement on the ______ day, ______ month and the
_________ year first above mentioned.

PARTY OF THE FIRST PARTPARTY OF THE SECOND PART

(Authorized signatory, stamp & name)
(Authorized signatory/Thumb Impression & Name)

Witnesses Witnesses
(Name, full address) (Name, full address)

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