Cotton bales being loaded at a farm in the US. Large-scale farmers and corporations garner most of the cotton subsidies provided by the US government
COTTON SUBSIDIES have remained a contentious issue in international trade and negotiations at the World Trade Organization (WTO). Farmers of developing and least developed countries (ldcs) complain that the massive support provided by developed countries, especially the US, has rendered cotton production uncompetitive in the Global South, leading to a disastrous impact on agricultural growth, export earnings, and farmers’ welfare. The impact is particularly palpable in countries like India, where the crop plays a crucial role in livelihood, poverty reduction, and agriculture development. Hence, the implications of the US’ massive support to its cotton farmers and the failure of WTO rules in disciplining cotton subsidies merit a discussion.
Let’s compare the US and India. The US has some 8,100 cotton farmers with an average farm size of 624 hectares (ha). By comparison, India has 9 million cotton farmers with an average farm size of 1.2 ha. Despite the prevalence of small and fragmented landholdings, the cost of cultivation here is less than that of the US. Yet, the US is a significant player in global cotton production and exports. In 2020, its share in global production was 14.5 percent; with 85 percent of output exported, the US’ share in global exports was even higher—35 percent.
The artificial comparative advantage the US enjoys can be gauged from the fact that its performer cotton support is a massive $1,17,494 compared to India’s $27 (see “Cotton shocks”, p56).
This story is from the February 16, 2021 edition of Down To Earth.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the February 16, 2021 edition of Down To Earth.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
IF IT AIN'T BROKE, DON'T FIX IT
West Bengal's Bhanga Mela (scrap fair) has pushed the limits of recycling. Organised every January at Mathurapur village in 24 South Parganas district, shops at the fair sell discarded electronic items, antiques and even non-functional goods that are in repairable condition.
A wild chase
BASED ON A 2015 PROBE THAT BUST A MAJOR IVORY SMUGGLING RACKET IN INDIA, POACHER PROVIDES A RARE GLIMPSE INTO THE WORK OF FOREST OFFICIALS
Suspect claims in Teva's suit against Cipla
The US Federal Trade Commission has warned the Israeli drug firm its patents are wrongful as it sues Cipla aggressively
WATER SCARREDCITY
Bengaluru's water crisis was long in the making. The city has grown at the cost of its lakes and ponds that are key to its water security. Over 93 per cent of the city is built-up, which makes groundwater recharge difficult. Inadequate sewage systems pollute the limited water available. Over the decades, the city has become dependent on the Cauvery, 100 km away, for 70 per cent of its water needs. This makes water unaffordable. It's time Bengaluru broadened its water resource base beyond the Cauvery and focused on recharging groundwater and reusing treated wastewater.
On guard
Communities in Chhattisgarh and Uttar Pradesh reduce human-elephant conflicts using technology and proactive on-ground monitoring
Overlooked crisis
While there is much talk about climate migration, the world is without a legal framework to protect people displaced by weather disasters
Taking charge for water
A young sarpanch in Maharashtra helps his village residents avail drinking water at home
International Women's Day Special SHE
In India, women self-help groups have been a source of empowerment, fostering economic independence, social stature and community resilience.
MODERATELY YOURS
The crunchy, slightly sweet tubers of shankhalu can be a healthy addition to one's diet
TROUBLED TEAK
Farmers need to be sensitised about right planting materials and cultivation techniques to benefit from high-value teak plantations