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Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No. 7863
PROJECT COMPLETION REPORT
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
JUNE 23, 1989
Agriculture Operations DivisionCountry Department IVAsia Regional Office
This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.
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ABBREVIATIONS AND A(*ONYMS
ARDC - Agricultural Refinance and Development CorporationCDS - Cotton Devqlopment ServiceCTRL - Cotton Technological Research LaboratoryGOI - Government of IndiaGOB - Government of HarayanaGOM - Government of MaharashtraGOP - Government of PunjabHAU - Harayana Agricultural University, HissarICAR - Indian Council of Agricultural ResearchICDC - Integrated Cotton Development coordination CommitteeMAU - Marathwada Agricultural University, ParbaniMPAU - Mahatma Phule Agricultural University, RahauriPAU - Punjab Agricultural UniversityPCC - Project Coordination ComuitteePMC - Project Management Committee
FOR OFFCL4 US ONLYTHE WORLD BANK
Washington D.C 20433USA
Ofice iE Of.ctnw-GenetalOpewatnm Evakuaitim
June 23, 1989
MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT
SUBJECT: Project Completion Report on India IntegratedCotton Development Project (Credit 610-IN)
Attached, for information, is a copy of a report entitled"Project Completion Report on India Integrated Cotton DevelopmentProject (Credit 610-IN)" prepared by the Governament of India, with anevaluation summary prepared by the Asia Regional Office. No audit ofthis project has been made by the Operations Evaluation Department atthis time.
Attachment
This document has a restricted distribution akid may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
FOR OMCI4L USE ONLYINDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETT3N REPORT
Table of Contents
Page No.
PREFACE ............................................... iBASIC DATA SHEET ...................................... iiEVALUATION SUMMARY .................................... iv
I. INTRODUCTION ................. ........................ 1
II. PROJECT IDENTIFICATION, APPRAISAL AND OBJECTIVES ...... 1Identification and Appraisal ......................... 1Project Objectives and Description ................... 2
III. PROJECT IMPLEMENTATION -
Project Coordination Committee ....................... 7Research Component ................................... 7Participating Research Organizations ............... 8Development of Cotton Varieties .................... 11Training ........................................... 12
Cotton Development Services .......................... 13Seasonal Credit Fund ................................. 18Term Loans ........................................... 23Project Cost ......................................... 27Project Financing .................................... 29Loan Allocation and Disbursement ..................... 30
IV. INSTITUTIONAL PERFORMANCE AND DEVELOPMENT ............. 30Project Coordination ................................. 30Implementing Agencies ................................ 31
V. PROJECT IMPACT ........................................ 32Impact of the Research Component on CottonProduction and Upgrading Cotton Research ........... 32
Achievements in Production Technologies .............. 33Economic Re-evaluation ............................... 34
VI. WORLD BANK PERFORMANCEProject Design and Appraisal ........................ 46Supervision ......................................... 46
VII. SUMMARY AND CONCLUSIONS .............................. 46Lessons Learned ..................................... 48
This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
1 Short-term Seasonal Credit Disbursement made byParticipating Banks (State-wise and Year-wiae) .49
2 Short-term Seasonal Credit - ARDC Refinance LimitsSanctioned, Amount Disbursed by Participating Banksand Refinance obtained by Banks from ARDC/NABARD in
Sirsa/Hissar Districts of Haryana State .50
3 Short-term Seasonal credit - ARDC/NABARD Refinance Limit
Sanctioned, Amount Disbursed by Participating Banks and
Refinance Obtaineed by Banks from ARDC/NABARD inAchalpur and Chandur Blocks of Amravati District
of Maharshtra .................................... 51
4 Short-term Seasonal Credit - ARDC Refinance LimitSanctioned, Amount Disbursed by Participating Banks
and Refinance Obtained by Banks from ARDC/NABARD
in Muktsar Block of Punjab State ..................... 52
5 Coverage of Area, Number of Beneficiaries andDisbursement of Seasonal Credit fund ................. 53
6 Gross Income, Net Income and In-remental Incomeat 1983-84 Prices (Sirsa District) ................... 54
7 Gross Income, Net Income and Incremental Income at 1983-84
Prices (Faridkor District) ......................... 55
8 Gross Income, Net Income and Incremental Income at 1983-84Prices (Amravati District) ......................... 56
9 Estimates of Cash Costs of Cultivation at 1983-84
Prices (Sirsa District) ............................ 57
10 Estimates of Cash Costs of Cultivation at 1983-84
Prices (Faridkot District) ......................... 58
11 Estimates of Cash Costs of Cultivation at 1983-84
Prices (Amravati District) ......................... 59
12 Characteristics of New Improved Varieties/Hybrids
Released During the Project Period ................... 60
13 Some of the Proven Techniques for Increasing
Cotton Production .................. 61
14 Effectiveness of Recommended Plant Protection
Practices ........................................ 62
1 A Linear Trend Equation Based on Yield Rates ............. 63
1 Comments from the Director of Agriculture ............... 65
2 Comments from the Borrower ........................... 67
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PROJECT COMPLETION REPORT
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT(CREDIT 610-IN)
PREFACE
This is the Project Completion Report (PCR) of the IntegratedCotton Development Project, for which Credit 610-IN in the amount ofUS$18.0 million was approved on January 27, 1976. The credit becameeffective on November 30, 1976 and was closed on March 31, 1984, two yearsand three months later than scheduled; an unused balance of US$6,383.33 wascancelled. The date of final disbursement was March 11, 1985.
The PCR was prepared by the Ministry of Agriculture, Government ofIndia. The Evaluation Summary, prepared by Asia Region Staff, is based onthe PCR: the Staff Appraisal Report, President's Report, Development CreditAgreement, and on supervision mission reports. There has been no follow-onproject.
This PCR was read by the Operations Evaluation Department (OED).The draft PCR was sent to the Borrower for comments and they are attachedto the Report (Annexes 1 and 2).
I
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PROJECT COMPLETION REPORT
INDIA: INTEGRATED COTTON DEVELOPPMENT PROJECT (CREDIT 610-IN)
BASIC DATA SHEET
KEY PROJECT DATA
Appraisal Actual or Actual as Z ofexpectation current es-imate appraisal estimate
Project coscs CUSS million) 36.0 38.3 106.0Ioan/Credic asount (USS million) 18.0 17.99 99.9
..ate Board approval 01/27/76 01/27/76Date effectiveness 09/24/76 11!30/76Datae physca. cooponents completed 12/31/81 03/31/84
Froportion then completed (Z) 100 40-50Llosing date 12/31/81 03/31/84Economic rate of return (X) 10, 34. 100 'a 100l /bInstitutional performance Adequate AdequateAgronomic perforuance Adequate AdequteNumber of direct beneficiaries (year.... 120000 /c c120,00_
CUMULATIVE DISBURSEMENTSFY76 FY77 FY78 FY79 FY80 FY81 FY82 FY83 FY84 Fn85
Appraisal estimate (USS Illon) 0.1 4.0 9.0 13.5 17.0 18.0 18.0 18.0 18.0 18.0Actual (USS million) - 0.4 1.9 4.8 7.8 9.9 3.0 17.0 17.99Actual as = of estimate - - 4.4 14 28 43 55 72 94 99
Date of final disbursement 03/11/5Principal repaid to (mo./daY/vr.) (USS million) None
!IISSION DATA
Date No. of Man-days Specializations Performnce Type ofUission (mo/vr) persona in field represented /d rating /e Trend /f problew /a
Identification 10-11/72 1 21 d - -
PreparationtPreappraisal 02/73 6 162 d.c.a.3 - - -
Appraisal 03-;04/74 6 175 d.c.a.3b - - -Follow-up 04-05/75 3 81 dAa'b - - -
Review 10/75 2 30 d.a - - -
Subtotal 469
Superrision 1 06/77 2 28 2a 2 2 TOSupervision 2 03/78 4 64 a.3b 3 2 0Supervision 3 02-03/79 3 63 a,c.b 2 1 TSupervision 4 11/79 3 81 2a d 2 1 TltSupervision 5 10/80 1 12 a 2 I MOSupervision 6 05/81 1 1 a 2 2 MOSupervision 7 10/81 2 24 2a 2 1 KOSupervision 8 02/82 1 2 a 2 I MFSupwrvision 9 05183 1 8 b 2 I FSupervision 10 11/83 1 10 b 2 I Flt
Subtotal 293
Total 762
OTHER PROJECT DATA
Borrower Government of IndiaExecucina ag-ency State Governmentst off Hayana. x'unilab. Maaharashtra
and Agriculture efin nce and Development CorporationFiscal year of borrover April I - March 31
am of currenev (abbreviation) Indian Rupees (Ra)Appraisal year average 1974 US$1.0 - Ra 8.0Intervening years average 197583 USS1.00 - Ra 8s 8Completion year average 1984 US$1.00 * Rs 11.2
Follow-on projecttName NoneLoan/credit numberLoanicredit amount (USS mallion)Date Board approval
/a Ten percent for cotton ginners, 341 for cotton seed processing and over 100I for cotton production
investmnts, including research, extension and credit./b For Raraysna and Punjab on-farm, research, extension investaents. Other data not available.
Farm families.a * agriculturist; b - agricultural engineer; c - financial analyst; d - economist.
7 I - problem-free or minor problms; 2 - moderate problems; and 3 * major problem.7T I - improving; 2 - stationary; 3 - deteriorating.
/gs. F - financial; 1 - nagerial; t - technical; P - political; and 0 - other.
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STAFF I (etaff woks)
FYS7 EVA U Fl M= Fi FMIF E m E f MMM E El ES EM To"]
Pr.apprul-al 66.9 lS.6 16.6 4S.9 1X3.0
Apraiual 76.5 36.2 132.1 243.0
N*gotiation 13.2 1S.2
Supervitoim 3.0 16.2 43.7 34.1 26.9 7.0 13.6 6.8 5.3 .7 3.3 160.9
Other .3 .7 1.0
TOTAL ".9 89.3 52.8 194.9 16.2 43.7 34.1 26.9 7.0 13.6 6.3 5.3 .7 3.8 361.9
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INDIA
INTECRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
EVALUATION SUMMARY
Introduction
1. India plants about 24% of the world's cotton area (1983) butproduces about 8% of world output. The area under cotton has remained almoetconstant being 7.5 million ha du-ing 1954-55, 8.4 million ha during 1964-55,and again 7.5 million ha during appraisal year 1974-75. Productivityincreased from the very low level of 100 kg lint per ha to 161 kg per haduring the same period, however even that yield was very low. The Governmentof India was very keen to improve productivity of cotton to meet local needs,and also to improve the incomes of about 13 million farm families engaged incotton production in India. With this broad objective in view the integratedcotton development project was taken up in three representative Indian -ottongrowing areas.
Objectives
2. The project was designed to develop and demonstrate to the rarmersthe practical means of increasing cotton yields, and also to improve the by-product recovery from ginning and cotton seed pressing. It iniolved:
(a) Accelerated research to breed more suitable and higher yieldingcotton varieties and develop improved cultural practices. Super-vised by ICAR, the research was to be executed by the respective
L atate agricultural universities of Punjab, Haryana and Maharashtraand directed to evolve varieties which were tolerant to pests andsuitable for the multiple cropping areas of northern India andrainfed areas of Maharashtra and other regions. The universitieswere also to produce breeder and foundation seed.
(b) Improved cotton production facilities for the 120,000 cotton growersin the project area including the use of good quality seed, and moreintensive insect and disease control, through the strengthenedextension service (Cotton Development Service).
(c) Modernization and improvement of existing facilities and new unitsin the ginning and seed processing sectors through financingreplacement saws for existing saw gins, precleaners for existingroller gins and new gins and presses. Cotton seed processingfacilities in Amraoti and Sirsa areas would be augmented to processthe 150,000 tons of cottonseed then fed to livestock.
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(d) Provision of seasonal production credit through the AgriculturalRefinance and Development Corporation to meet the credit needs forincreased use of inputs including certified seed and pest controloperations.
(e) Technical assistance and training for all levels of staff in eachproject component.
Implementation Experience
3. Project Phasing. Although the project was formulated after adetailed survey of the country and wide ranging discussions were held lastingalmost 2 years with people involved in all sectors of cotton economy(development, research, farmers, traders, processors and financialinstitutions), the PCR finds that the project formulation underestimated themagnitude of adn nistrative and procedural problems related to staff postings,import licenses, release of foreign exchange, and other factors such asshortages of critical construction inpits like cement. Project implementationwas therefore slow to begin and fell behind appraisal targets, resulting inthe project period being extended by two years and thrae months so as tocomplete the civil works and machinery installation.
4. Financial. Project costs during implementation amounted to Rs 337million against the appraisal estimate of Rs 288 million. In fact, it wouldhave been still higher if the states of Punjab and Harayana had charged theproject with expenditure on pest control aerial spraying over a gross area of0.62 million ha during 1976 to 1983. This cost was met out of the Governmentbudget and was debited to farmers as short term (taccavi) loans which were notreimbursed as they carried lower rates of interest than the one specified inthe Credit Agreement. Delays in implementation and cost escalations for theginning and processing machinery were the main factors contributing to costoverruns.
Organization and Management
5. The comp.exity of the project required a considerable degree ofcoordination between government ministries and participating agencies both atthe national and state levels. A Project Coordination Committee was set up bythe Ministry of Agriculture at the national level. The States set up projectmanagement committees at the state level and in the project areas. Thesecommittees functioned quite satisfactorily in the beginning and facilitatedproject implementation. The national level committee would have benefittedand monitored implementation more effectively if it had been provided withstronger secretarial support. The cotton research component was supervised bythe Indian Council of Agricultural Research (ICAR) and implemented by theHarayana Agricultural University, Punjab Agricultural University, three StateAgricultural Universities of Maharashtra, and Cotton Technological ResearchLaboratory Bombay. The research component was implemented satisfactorily andadditional facilities comprising laboratories and equipment for future cottonresearch both under irrigated and rainfed research were created. A largevolume of breeding material has been generated for future use. The Agricul-tural Refinance and Development Corporation provided effective support to thecredit component.
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Agricultural Performance
6. Cotton Research. Clearly defined tasks of cotton breeding, on-farmtesting and training of scientists and extension workers were formulated andimplemented. In the irrigated north zone cotton belt of Punjab and Harayana,new improved medium staple varieties were popularized, basides evolvingpromising cultures for future exploitation. Three new varieties of shortstaple were developed and released in Harayana (1) and Punjab (2). Similarlya number of new improved varieties were introduced/developed in MaharashtraState. A number of new agronomic low cost- high benefit techniques were fieldtested and introduced both in the irrigated and rainfed areas.
7. Training. Four scientists were deputed for post graduate studies(Ph.D program) in the USA, whilst 17 scientists and development officers weresent for study tours to the Sudan and USA, and large numbers of short trainingcourses were organized locally by the participating research institutions.
8. Cotton Development Service. The cotton development service wasorganized in the project areas to educate farmers in the latest cottoncultivation technologies, help procure inputs and organize pest controloperations. Except in Maharashtra, the staff strength actually provided inthe field was less than proposed in the SAR.
9. As required under of the project, the indian Institute ofManagement, Ahmedabad evaluated the research/development component. Theevaluation report concluded that the cotton productivity in the project areahad increased faster cotupared to the control area.
10. Seasonal Credit-Fund. ARDC prepared detailed procedures for theoperation of the Fund. In the initital years this component did not worksatisfactorily because of such reasons as cantral cooperative banks beingunable to utilize resources because of poor recovery of previously advancedloans, insistence on mortgage of land as security by commercial banks beingunacceptable to the farmers. The level of disbursements improved during thelater years of the credit, i.e., from 1980 onwards.
11. Term Loan. The project provided to the Maharashtra and Harayanacomponents, facilities for replacement of gin saws, precleaners, roller gins,high capacity saw gins and processors, as well as expeller cum solventextraction plants. Actual utilization was higher than SAR expectations, butusage was limited mainly to high speed saw gins and for seed processing. Nofactory owners came forward to improve roller gins.
12. No information is available on the progress of recoveries of theloans advanced under the seasonal credit fund and term loans and the PCRanalysis is weak in this respect. Project supervision should have givenpointed attention to this aspect.
Rates of Return
13. At appraisal the economic rates of return for the differentcomponents were calculated at 10% for cotton ginneries, 34% for cottons seed
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processing and more than 1001 for cotton growers, Cotton Development Service,Research and Seasonal credit. The overall project rate of return wasinfinity. The PCR has not calculated the ERR for the entire project. Withsignificant increase in production (para. 15), it is realistic to expect thatthe revised ERR for the project wo-ild still remain high. However, with lowerbenefits from the processing component, because of deiays and lower capacityutilization, the overall ERR would be significantly lower than the rate (1002)completed at appraisal. The net benefits from investments made on CottonDevelopment Service, Research and Short-term credit in Harayana and Punjabshow a rate of return higher than 100l. The per hectare yields of cotton inthe project area in the year 1982-83 increased to 1600 kg (900 kg pre-project)in Sirsa, Harayana, 2,000 kg (1,250 kg preproject) in Faridkot, Punjab, and560 kg (32 kg preproject) in Amraoti, Maharashtra. In the intervening projectyears, the yields fluctuated but at levels higher than the preprojectperiod. The yields adjusted to seasonal variations on the basis of trendequation, are quite close to SAR yield levels.
14. The PCR has not calculated the net benefits from investments made inginneries and cottonseed processing plants. Seven units comprising threeginneries (Harayana), three seed processing complexes (two in Harayana, one inMaharashtra) and one solvent extraction plant (Harayana) were established.Most of these units were completed clos-e to project completion. Even theunits (e.g., two ginneries in Harayana) which were completed in early 1981,only functioned for a short-period up to project closing, due co powershortages.
15. The SAR assumed that total additional cotton production would reach106,000 tons, however, the actual additional production was 154,000 tonsannually. This represents a saving in imports valued at Rs 857.5 million at1983-84 domestic ptices. The cotton seed processing unit, when working atfull capacity, can convert 100,000 tons of cotton seed into high valued by-products.
Sustainability
16. The PCR does not comment on the project's sustainability.Nevertheless it can be concluded that the agronomic aspects of the projectwere successfully completed and additional farmers will replicate and sustainhigher yields in future. The Cotton Development Service established in theproject area has become part of the reformed axtension system and the researchcomponent is now part of the overall research organization of the States.Improved technologies and already strengthened extension services willcontinue to assist farmers to improve cotton productivity and incomes.
windings and Lessons
17. Although project completion was delayed, the project objective ofincreasing cotton yields through strengthened research, extension and creditsupport was achieved.
18. The establishment of ginneries and cottonseed processing plants wasdelayed for a variety of reasons (lengthy procedures for obtaining licenses,
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foreign exchange and undertaking procurement, shortages of cement, etc.) andthe capacity utilization was low because of power supply shortages. Accordingto the PCR these initial problems have now been overcome and these units areexpected to work satisfactorily. However, it is too early yet to comment ontheir performance.
19. SLrong commitment from Government and effective management andcoordination of essential project components activities are basic conditionsfor the success of a complex project. Full time officers in key positions areessential for solving interagency problems during implementation.
20. As this multi-component project involved a number of agencies, it isconsidered that the SAR was optimistic in projecting the time it would take toimplement the components; recruit the staff, procure and establish the cottonginning and processing units, and establish, and agree on, the norms andprocedures for credit disbursement.
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
I. INTRODUCTION
1.1 The Integrated Cotton Development Project was identified inOctober/November 1972; pre-appraised in February 1973; appraised inMarch/April 1974; reviewed (Punjab component) in October 1975; negotiated withthe Bank in November/December 1975; signed on February 26, 1976; becameeffective on November 30, 1976 and closed on March 31, 1984.
1.2 At the time of identification of this Project, it was observed thathe main problems in cotton production and processing in India were: (i) areaplanted, yield and output had been relatively stagnant for the past ten years;(ii) staple lengths produced were not in balance with the requirements of themarket; (iii) the low yields were due to poor quality seed, failure to controlinsects, and ineffective cultural practices; (iv) ginning facilities were slowand inefficient; (v) less than half the cottonseed produced was crushed, andmuch of it so poorly that the products had a low market value.
1.3 This project was, therefore, designed to pioneer key improvements inthree representative Indian cotton-growing areas, one each in Haryana andPunjab (irrigated) and one in Maharashtra (rainfed). The total area involvedwas 183,000 ha, about 2% of India's total planted cotton area.
II. PROJECT IDENTIFICATION, APPRAISAL AND OBJECTIVES
Identification and Appraisal
2.1 A six-member, preappraisal (Identification) mission consisting ofMr. Frank Lowenstein (Mission Leader), Mr. C. Von Wallenberg (FinancialAnalyst), Dr. H.L. Manning (Consultant-Cotton Production), Mr. J. Boer(Consultant-Cotton Manufacturing), Mr. R. Baker (Consultant-Cotton Ginning),Mr. A. Smith (Consultant-Cotton Seed Crushing) arrived in the country onFebruary 4, 1973. The Mission identified an Integrated Cotton DevelopmentProject in the State of Maharashtra (rainfed area in Amravati district) andHaryana (irrigated area in Hissar/Sirsa district), covering an area of 1.5 to2.0 million ha. The Project was appraised in March/April 1974 by appraisalmission consisting of M/s. D.D. Brown (Leader), A. Seager and C. VonWallenberg (IDA), and K. Anthony (Consultant) visited India in April/May1975. Later on, Government of India decided to include into the projectproposal a small irrigated unit in Punjab also, which component was reviewedby M/s. D.D. Brown and G. Stern in October 1975. The Project was negotiatedwith the World Bank from November 24 to December 2, 1975; signed on February26, 1976 and became effective on November 30, 1976.
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Project Objectives
2.2 The project was developed to demonstrate pra-tical and effectivemeans of increasing cotton yields and maximizing by-product recovery fromginning and cottonseed processing. It involved: (i) accelerated research tobreed more suitable and higher-yielding cotton varieties; (ii) provision ofimproved seed and more intensive insect and disease control services;(iii) modernization and expansion of ginning and cottonseed processing;(iv) provision of revolving fund for incremental seasonal credit to growers;and (v) training programs.
Project Description
2.3 The project was implemented over an area of 183,000 ha in the statesof Haryana, Punjab and Maharashtra. In Haryana it comprised a compact regionof 110,000 ha of irrigated cottons in the Sirsa/Hissar districts. This areawas spread in 350 villages. The area is irrigated from the Bhakra DamIrrigation and Power Complex. The cotton is planted in the month of May-Juneand picked up in November-December. The cotton yield at the time of imple-mentation of this project was about 900 kg per ha of kapas. In Punjab, onlyan area of 23,000 ha was taken up in Muktsar Block of Faridkot district. Thisis irrigated from canal and tubewells. The yield at the time of inception ofthis project was 1,250 kg per ha of kapas. In Maharashtra, the area selectedunder the project was Amravati district which was entirely rainfed. Thecotton yield at the time of initiation of this project was only 320 kg per haof kapas. The yields depended more on the rainfall and its intensity. Thesoils are medium to heavy black clays.
2.4 To ensure the success of the project the Government of India(Ministry of Agriculture) had set up a Project Coordination Committee, whichwas responsible for project coordination/execution; help StateGovernments/Indian Council of Agricultural Research (ICAR) in the execution ofthe project; finalize plans for short-term study ours by Research and Develop-ment Officers; monitor progress of seasonal credit fund and cotton seedprocessing facilities. The State Governments of Haryana, Punjab andMaharashtra had also set up Project Management Committees at State level andin the project areas.
2.5 The Project had the components of: (i) Cotton Research; (ii)Provision of seasonal credit funds to the cotton growers; (iii) Creation ofginning and processing facilities; and (iv) Cotton Development Service. Thecotton research component was supervised by the Indian Council of AgriculturalResearch and executed by the Haryana Agricultural University (HAU), Hissar,Punjab Agricultural University (PAU), Ludhiana, Punjabrao Krishi Vidhyapeeth(PKV), Akola, Marathwada Agricultural University (MAU), Parbhani, MahatmaPhule Agricultural University (MPAU), Rahuri and Cotton Technological ResearchLaboratory (CTRL), Bombay. The Agricultural Re-finance Development Corpora-tion (ARDC), now designated as National Bank for Agricultural and RuralDevelopment (NABARD), was responsible for preparing plans and financingseasonal credit funds and the creation of ginning and processing facilities.For improving cotton production facilities, the existing extension service inthe States was strengthened through the formation of a Cotton Development
Service (CDS) in each project area and intensified training was given to thestaff on various aspects of dotton production. The CDS was responsible toprovide growers with advice on cultivation practices, plant protectionservices against insects and diseases and in marketing of kapas. The cottonseed processing facilities in Haryana and Maharasbt.ra were augmented by theinstallation of new processing complexes.
2.6 The estimated cost of the project was US$36.0 million out of whichthe IDA credit was US$18.0 million. The cost estimated and IDA creditfinancing were as follows:
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Table 1: COST ESTIMATE AND FINANCING
ForeignLocal Foreign Total Local Foreign Total exchange
(Rs million) --- --- (US$ million) --- x
GOVERNMENT AGENCIESICAR
Administration andtraining 1.6 - 1.6 0.2 - 0.2 -
Technical assistance 0.8 6.4 7.2 0.1 0.8 0.9 89
UniversitiesHaryana 4.8 2.4 7.2 0.6 0.3 0.9 33Maharashtra 15.2 8.8 24.0 1.9 1.1 3.0 37Punjab 2.4 1.6 4.0 0.3 0.2 0.5 40
Cotton Development ServiceHaryana 9.6 1.6 11.2 1.2 0.2 1.4 14Maharashtra 7.2 0.8 8.0 0.9 0.1 1.0 10Punjab 1.6 0.8 2.4 0.2 0.1 0.3 33
Subtotal 43.2 22.4 65.6 5.4 2.8 8.2 34
ContingenciesPhysical 3.2 1.6 4.8 0.4 0.2 0.6 33Price 5.6 3.2 8.8 0.7 0.4 1.1 36
Subtotal 8.8 4.8 13.6 1.1 0.6 1.7 35
TOTAL GOVERNMENTAGENCIES 52.0 27.2 79.2 6.5 3.4 9.9 34
ON-LENDINGGinning 16.0 15.2 31.2 2.0 1.9 3.9 49Cotton seed processing 41.6 22.4 64.0 5.2 2.8 8.0 35S.C.F. 52.8 27.2 80.0 6.6 3.4 10.0 34
Subtotal 110.4 64.8 175.2 13.8 8.1 21.9 37
ContingenciesPhysical 4.8 5.6 10.4 0.6 0.7 1.3 54Price 13.6 9.6 23.2 1.7 1.2 2.9 41
Subtotal 18.4 15.2 33.6 3.3 1.9 4.2 45
TOTAL ON-LENDING 128.8 80.0 208.8 16.1 10.0 26.1 38
TOTAL 180.8 107.2 288.0 22.6 13.4 36.0 37
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Table 2: SOURCE-WISE FINANCING INCLUDING IDA
Ultimate LendingGovernment borrowers agencies ARDC Total IDARs.M Z Rs.M Z Rs.K Z Rs.M % Rs.M Rs.M Z
GOVERNMENT AGENCIES
ICAR 8.8 100 - - - - - - 8.8 6.8 74Universities 35.2 100 - - - - - - 32.2 15.0 43CDS 21.6 100 - - - - - - 21.6 4.7 21Contingencies 13.6 100 - - - - - - 13.6 4.5 33
Subtotal 79.2 100 - - - - - - 79.2 31.0 39
ON-LENDING
Cinning - - 7.8 25 4.7 15 18.7 60 31.2 14.0 45Processing - - 16.0 25 9.6 15 38.4 60 64.0 28.8 45SCF - - - - - - 80.0 100 80.0 60.0 75Contingencies - - 4.6 14 2.7 8 26.3 7.8 33.6 10.2 30
Subtotal - - 28.4 14 17.0 38 163.4 78 208.8 113.0 54
TOTAL 79.2 27 28.4 10 17.0 6 163.4 57 288.0 144.0 50
US$ M Equity 9.9 3.5 2.1 20.5 36.0 18.0 50
2.7 The IDA credit was US$18 million, i.e., S0Z of the total projectcost. The IDA credit was on standard terms of the Government of India. TheIDA disbursements were according to th.e following schedule:
(a) 50Z of the cost of civil works and equipment incurred by ICAR, theuniversities and CDS;
(b) 100X of the cost of consultants and overseas training;
(c) 75X of ARDC disbursements for loans to ginners and processors;
(d) 75Z of ARDC disbursements made through seasonal credit fund.
2.8 The project lending terms and conditions were as follows:
(a) IDA to Government of India (GOI). Normal IDA terms and conditions;
(b) GOI to ICAR, Government of Haryana (COH), Government of Maharashtra(COM), and Government of Punjab (COP):
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(i) To finance civil works and equipment for the respective StateCotton Development Services in the project areas, and forcotton research and Breeder-Foundation cotton seed production,including staff training and consultants, by ICAR, CTRL and therespective agricultural universities; in accordance with GOI'sestablished policies for development assistance to ICAR and theStates.
(c) GOI to ARDC:
(i) For ARDC refinancing for up to 9 years:
(a) annual interest rate of 6.75Z minimum, less 0.25% forprompt payment; and
(b) repayment at the end of year 9;
(ii) For ARDC refinancing for more than 9 and up to 15 years:
a. annual interest rate of 7.25% minimum, less 0.25% forprompt payment; and
b. repayment at the end of 15 years; and
Ciii) GOI to carry exchange risk.
(d) ARDC to Lending Banks:
i) annual interest rate of not less than 7.5% to the lendingbanks;
(ii) installment repayments to coincide with agreed collection datesfrom ultimate borrowers; and
(iii) ARDC to refinance lending banks by loan not exceeding 90% ofindividual loans.
(e) Lending Banks to Ultimate Borrowers:
(i) To Cotton Ginnery and Cottonseed Processing Entrepreneurs:
a. On-lending limited to cotton ginnery and cottonseedprocessing entrepreneurs for improvements of facilitiesnow operating or for modern facilities to be installed inthe Sirsa, Hissar and Amraoti districts and for therehabilitating of existing ginneries in Faridkot district;
b. A loan ceiling of 75% of the equipment and civil works tobe financed;
c. Ultimate borrower to have reserve capital in an amountconsidered adequate by ARDC to operate the facility;
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d. Annual interest rate of not less than 11.0%;
e. Repayment period to be based on the earning capacity ofthe investment but not exceeding 3 years from the date ofsigning the loan agreement; and
f. All applications for refinance for schemes having totalinvestment costs in excess of US$0.50 million equivalent,together with appraisal reports and all other relevantdata, to be forwarded to IDA for final approval.
(ii) To Borrowers from the Seasonal Credit Fund:
a. On-lending limited to cotton growers in the Sirsa, Amraotiand Muktsar project areas for short-term cotton productioncredit;
b. Annual interest rate of not less than 11.0%; and
c. Repayment period to be based on the marketing of kapas butin any event not to exceed ten months.
(f) General:
i) ARDC and the lending banks to maintain separate accounts: onefor investment lending under 5(a) aboue and one for SeasonalCredit Fund;
(ii) Security to be in accordance with arrangements between thelending banks and ARDC;
(iii) ARDC only to refinance subprojects which, on the basis of care-ful feasibility and economic studies were considered to befinancially sound and viable, and were backed with satisfactorytechnical and administrative management; and
(iv) ARDC to advise IDA prior to inviting bids in respect of loansfor the purchase of ginning and cottonseed processing equipmentwhere such bids were expected to exceed US$500,000 equivalent.
Il. PROJECT IMPLEMENTATION
Project Coordination Committee
3.1 The Government of India had set up an Integrated Cotton DevelopmentProject Coordination Committee (ICDC) in the Ministry of Agriculture withAdditional Secretary (P) as Chairman. The other members of the CoordinationCommittee were Agriculture Commissioner (Joint Commissioner (Cotton) as analternative member), representatives of Indian Council of Agricultural
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Research, Department of Economic Affairs, Ministry of Commerce, Indian CottonMills' Federation, Cotton Coiporation of India, Directoratc General ofTechnical Development, National Seeds Corporation, Agriculture RefinanceDevelopment Corporation, Secretaries of Agriculture of Government of Haryana,Punjab and Maharashtra. Joint Commissioner (World Bank Cotton Project) wasthe Member Secretary of the ICDC. The ICDC was responsible for overallproject coordination and deal with the problems and difficulties arising atthe Government of India level and at the State level. The Government ofHaryana (GOH), Government of Punjab (GOP) and Government of Maharashtra (GOM)had also set up State Project Management Committees (PMC) responsible forProject Management and Coordination at the State level and for dealii.g withthe problems and difficulties at both State and project area levels. The PMCwas chaired by the Secretary Agriculture of the State Government and hadmembers of the Department of Cooperation and Industry, State AgriculturalUniversities. State Seeds Corporations, Agriculture Refinance DevelopmentCorporation and the Project Coordinator of the Cotton Development Service.
Research Component
3.2 The Project aimed at strengthening the cotton research, operationalresearch and training facilities of Haryana, Punjab, Maharashtra AgricultureUniversities and Cotton Technological Research Laboratory, Bombay and toexpand the All India Coordinated Cotton Improvement Program and researchdirected towards:
(a) Breeding high-yielding medium staple, short season (150-160 days)compact plant type cottons, resistant to insect pests and diseaseswith acceptable staple length and textile qualities which fit intomultiple cropping systems in the irrigated areas of northern Indiaand are easier to manage in the rainfed areas of Maharashtra andother regions.
(b) Development and field testing in the project areas of more effectivemethods to prevent and/or control cotton insects and diseasesincluding more resistant short season varieties, field sanitation,area control, chemical control, spray equipment and methods oforganizing and executing effective integrated pest control measures;and
(c) Development and field test in the project area improved culturalpractices including varieties testing, planting dates, fertilizerrate and methods of application, skip row irrigation, contour,ridging and drainage.
3.3 Participating Research Organizations: The research and trainingcomponent was carried out under the overall supervision of the Indian Councilof Agricultural Research which was also responsible for developing collabora-tive arrangements acceptable to IDA with one or more internationally recog-nized institutions for consultancy in rainfed cotton management, cottonbreeding and cotton plant protection. The participating research organi-zations included besides ICAR, HAU (Hissar), PAU (Ludhiana), PKV (Akola), MAU(Parbhani), MPKV (Rahuri) and CTRL (Bombay). The Project Coordinator (ICDP)was stationed at the CICR, Nagpur.
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3.4 Research and Training Tasks Assigned: The research organizationsmentioned above had been assigned to the task of:
(a) Planning and implementing a five-year and an annual intensive cottonresearch program.
(b) Planning and implementing a field testing (operational research) anddemonstration program in each project area.
(c) Plan and implement an intensive training program for the researchand CDS staff, cotton farmers and plant protection workers and withCTRL assistance for cotton pickers and operators of cotton gins andcotton seed processing facilities.
(d) ICAR along with the participating Agricultural Universities, CTRLand Directors of Agriculture of Haryana, Punjab and Maharashtra wereauthorized to select up to 15 cotton research, cotton developmentand other officers closely associated with the project for short-term study tour/travel abroad to acquaint them with the latestinnovations in cotton production technology.
(e) The five Agricultural Universities and CTRL were provided financialassistance for expanding/strengthening their research capability byway of adding more staff, procuring laboratory and farm equipmentand construction of laboratories as needed with the assistance ofconsultants, multi-disciplinary research work envisaged in theproject.
3.5 Consultanc- Services: The IGAR appointed five Indian consultantsfor 30 man-months each to guide in planning, execution and evaluation ofaccelerated research, efficient extension and to train staff as follows:
1. Plant Protection Dr. Sardar Singh (Hissar) for Hau & PAUConsultant in Cotton
2. Rainfed Cotton Dr. N.P. Wankhede (Akola) for PKV, MAU and MPKV.Management Consultant and MPKV.
3. Breeding Consultant Dr. Avtar Singh (Hissar) for HAU & PAUin Cotton
4. -do- Dr. N.D. Arora (Akola) for MAU, PKV and MPKV.
5. Cotton Plant Dr. T.R. Subramaniam (Akola) for PKV, MAU & MPKV.Protection Consultant
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FINANCIAL ALLOCATIONS AND ACHIEVEMENTS
Financial allocations (Rs. million)
ICAR headquarters staff 4.357Advance degree fellowships, 7.400CTRL and CICR
PKV, Akola 3.600MPKV, Rahuri 1.800MAU, Parbhani 1.800HAU, Hissar 2.600PAU, Ludhiana 1.520
TOTAL 23.077
3.6 The Universities were granted funds for civil works, land develop-ment, farm machinery, vehicles, etc. by concerned State Governments such asMaharashtra for PKV (Rs. 10.410 M), MAU (Rs. 2.968 M) and MPKV (Rs. 3.408 M),Haryana for HAU (Rs. 4.688 M) and Punjab for PAU (Rs. 2.464 M) totalling toRS. 23.938 M.
ACHIEVEMENTS OF FISCAL TARGETS(Rs. Million)
S.N. Details HAU PAU PKV MAU MPKV CTRL CICR
Civil works 2.41 1.61 5.78 2.94 3.15 4.47 -Lab equipments 1.07 0.65 2.02 1.01 0.98 1.94 0.10Farm machinery andequipments 2.24 0.87 5.88 1.08 1.52 0.06 -
Land development - 0.10 1.06 0.01 0.17 - -Staff position (no) 18 10 37 18 18 16 4
3.7 Details of Physical Assets Added/Provided:
(a) HAUl: Farm laboratory, seed storage godown, equipment serviceshelter, staff quarters, laboratory equipments for physiology,breeding, biochemistry, seed technology and plant protection,meteorological observatory, office equipments, farm machineryincluding tractor, harvestors, threshers and sprayers, jeep, sowingequipments and furniture.
(b) PAU: Laboratory-cum-stores building, breeding and technology equip-ments, power sprayers, electronic calculators, physiological and
[l
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plant protection laboratory equipments, slide projector, gins andseed analyzers, etc.
(c) PKV: Cotton research laboratory, cotton seed storage rooms, equip-ment service shelter, trainees hostel, consultants' quarters, gins,acid delinting plant, balances, seed cabinets, meteorological, seedand fiber technology instrument, saw gin plant, seed delinters,diesel generator, furniture and office equipments, tractors, irriga-tion pipes, cultivators, power sprayers, trailers, truck and diskharrow, tractor mounted sprayers, mini-trucks, amino acid analyzer,microcomputer, refrigerators, etc.
(d) HAU: Field laboratory and seed processing building, microcomputer,microscopes, fiber seed technological equipments, camera, D.R. gins,incubatots, seed racks, air conditions, plant protection equipments,deep freeze, power sprayers, furniture, office equipments, seedelinters, wheel harrows, elevators, etc.
(e) MPKV: Laboratory and seed processing shelter, office equipments,furniture, microscopes, equipments for breeding, physiology, fiberseed technology and farm, computers, balances for precisionweighing, dehumidifier, audio visual equipments, tractor mountedsprayers, walk-in-incubators; meteorological tools, D.R. gin,tractor, trailers, submersible pumps, jeep with trailer, motorcycle,water tanker, etc.
(f) CTRL: Equipments like gins, saw gin unit, fiber quality evaluationinstruments for a regional ginning training center at Nagpur andstrengthening QEU of CTRL, Bombay.
3.8 Development of Cotton Varieties: In the irrigated north zone cottonbelt of Punjab and Haryana; F 414 and H 777, the most suitable high-yieldingmedium staple, early maturing varieties of hirsutum were popularized, theirmarimum yield potentials demonstrated and large coverage with good qualityseed ensured. Thirteen promising hirsutum cultures were identified in HAU.In the PAU, a high-yielding hirsutum variety LH 372 with medium staple wasreleased under the project besides evolving six promising cultures for furtherexploitation.
3.9 In desi cotton; DSI variety for Haryana and LD 133 and LD 230 forPunjab with short ataple and high-yield potential were released andpopularized. These varieties are superior to G 27 in yield and insectresistance.
3.10 In Maharashtra State, SRT1 evolved for Gujarat was proved to besuitable for replacing Buri 1007 and L 147. PKV Hy.2 and intrahirsutum hybridand desi variety AKA 5 both possessing medium staple and higher yield poten-tial than SRT1 (variety) and AKH4 respectively were released for Vidarbha re-gion besides identifying PKV 081 an early-maturing variety with short planttype on hirsutum background derived from introgressive hybridizaL.ion. InMarathwada region, Gooavari hybrid was released to replace H4 under rainfedcultivation. Another early maturing medium staple hybrid MHH 44 was also
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released. In desi cotton, Eknath, Rohini and Purnima were also released/evolved for the low rainfall'areas of Marathwada region. In the westernMaharashtra, an interspecific hybrid Savitri was released in place ofVaralaxmi. In addition new hybrids RHH 195, RHH 272 and RHB 278 have beendeveloped for the irrigated areas and RHH 353 and RHH 352 for rainfed areas ofthe western Maharashtra. In desi cotton, seven promising strains have beenidentified. The target production of breeder and foundation seeds of therequired varieties and parents of hybrids for certified seed production wasachieved without shortfall. The characteristics of these varieties/hybridsand the quantities of breeder and foundation seed produced are given in AnnexTable 12.
Operational Research
3.11 Trials conducted are given below for testing/demonstrating new tech-nologies:
HAU 184 trials for varieties, optimum seed rate and solid planting, fivevillages for 1PM technique.
PAU 117 trials including varietal and agronomic techniques. IPMvillage, youth club, village-information center, etc.
PKV 521 trials for varietal, agronomic and plant protection aspects.
MAU 613 trials arranged on all the aspects besides 1PM with bioticagents.
MPKV 410 trials besides IPM in villages.
Training
3.12 The details of training conducted are given below:
University No. of programs No. trained
HAU 11 1,230PAU 230 20,500PKV 22 2,559MAU 58 7,367MPKV 152 14,565CTRL 8 95
The CTRL has established a Ginning Training Center at Nagpur with equipmentscosting Rs. 2.01 M for training processors in India and also other SE Asiancountries.
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3.13 Higher Training and Study Tours
(a) Scientists Deputed from Universities for Ph.D Program in USA (Totalfour out of provision tor 12). Two from PAU, Ludhiana (Sh. H.L.Bhardwaj & Sh. A.S. Brar) yet to return. Two from PKV Akila (Sh.S.G. Kharche & Sh. A.R. Dhapte both completed Ph.D and returned).
(b) Study Tour to USA (Short-term Tour). The details of deputation aregiven below:
No. deputed toUniversity Sudan and/or USA Names of scientists/officers
PAU 2 Dr. T.H. Singn, Dr. B.S. ChahalHAU 2 Dr. A.P. Jayaswal, Dr. B.R. MorPKV 1 Dr. M.A. TayyaoMPKV 2 Dr. A.K. Patil, Dr. M.V. ThombreMAU 1 Dr. S.N. VyahalkarCTRL 1 Sh. P.C. Oka(State Departments 6 *Sh. S.S. Gill, Dr. M.V. Sant,Haryana, Punjab & Sh. D.S. Sahota, Sh. V.G. Patel,Maharashtra) Sh. S.K. Sindwani, Sh. S.S. GillGOI 2 Dr. V.M. Sahni, Sh. S.S. Chauhan
Total 17
3.14 Thus 17 officers had the benefit of studying the advanced productiontechnologies in the USA, Sudan, Peru, Turkey, etc. and also modern processingmethodologies. Their advanced knowledge is available for improving cottonproduction in India.
Cotton Development Service (CDS)
3.15 The Cotton Development Service was organized in the participatingStates for: (i) educating and motivating the farmers to adopt improved cottonproduction technology; (ii) procuring inputs and credit; (iii) providingefficient disease and pest control service; (iv) helping growers in marketingof their produce at remunerative prices; and (v) providing a close linkagebetween research ar.d cotton development, etc.
3.16 CDS in Haryana: To coordinate and keep a watch on the implementa-tion of the project, the State Government of Haryana aLad constituted a ProjectManagement Committee at State level and a Project Area Committee at thedistrict level. The State Government appointed a Project Director andpositioned him in the project area at Sirsa. Other necessary staff was alsoprovided to help him in proper implementation of the project. The number ofdevelopment officers working in the project in 1976-77 was only 44 which wasincreased to 259 in 1983-84. However, the positioning of the staff was not asper the appraisal report of IDA.
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; 3.17 A survey of 374 farmers (195 contact + 179 noncontact) with regardto adoption of recommended practices revealed that majority of the farmers hadadopted practices like sowing of recommended varieties, using optimum seedrate, following irrigation schedule and interculture operations. Uowever,they were not using recommended quantity o4 fertilizers and taking plantprotection measures because these involved financial investments. This wasevident from the following table:
Table 3: PERCENTAGE OF ADOPTION OF RECOMMENDED PRACTICESBY COTTON GROWERS IN HARYANA
Z of contact X of noncontactfarmers who adopted farmers who adopted
Full Partial No Full Partial Norecommend- recommend- recommend- recommend- recommend- recommend-
Practice dation dation dation dation dation dation
Variety of seed 62 12 26 58 13 29Seed treatment 44 2 54 35 3 62Seed rate 88 11 1 85 8 7Sowing time 96 1 3 98 - 2Basal dose
N 5 2 93 4 1 95P 10 1 89 6 - 94K 2 1 97 2 - 98
Top dressing 44 8 48 42 10 48Withholding 1stirrigation 79 1 20 84 2 14
Interculture 80 6 14 78 8 14Plant protection 33 19 48 24 16 60
3.18 The CDS had taken steps to increase the use of certified seed, covermore area under plant protection, laying out of demonstration plots and train-ing the farmers and staff employed in the cotton development service. As aresult the yield of kapas increased from 13.98 kg in 1976-77 to 17.01 kg perha in 1982-83. The progress made under various components was as follows:
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Table 4: PHYSICAL ACHIEVEMENTS OF VARIOUS COMPONENTS IN HARYANA
S. Component/ 76-77 77-78 78-79 7-80 80-81 81-82 82-83 83-84No. Year
Area ('000 ha) 39 67 87 111 118 116 139 122Certified seed (tons) 305 226 413 458 229 432 700 843Pertilizer (tens)
N 2,280 4,393 5,414 5,033 5,803 5,468 7,531 7,862P 60 91 112 280 138 62 594K - 9 23 34 57 50 18 289
Subtotal 2,340 4,441 5,528 5,179 6,140 5,656 7,611 8,745
Plant protection(gross '000 ha) 139 241 430 220 210 298 322 407
Demonstration (no) 239 200 150 200 90 150 290 300Yield (kg/ha)Projected 900 1,200 1,300 1,400 1,500 1,600 - -Achieved 1,398 1,299 1,500 1,449 1,500 1,599 1,701 1,005
3.19 An analysis of the various physical achievements made in the projectarea in Haryana showed that the certified seed could not cover more than 50%of the area. In the case of fertilizer use also, with the dose of 80 kgnitrogen per ha., the maximum area covered could be only 98,000 ha as againstthe total area cove:age of 122,000 ha. During 1982-83, special plantprotection squads were organized, each equipped with a van, a mechanic, 10spray pumps and insecticides to help cotton growers in ground sprayingoperation. Such a service if continued would serve a very useful purpose.
3.20 As against the provision of Rs 11.022 millions the expenditure onCDS was Rs 14.050 millions.
3.21 CDS in Punjab. The selected area in Punjab was Muktsar block inFaridokot district. The area was spread over 85 villages involving 14,000growers. The Punjab State had also constituted a Project Management Committeeat State level and a Project Area Committee at the district level. The JointDirector Agriculture, at state headquarters acted as Project Coordinator forthis project. The physical achievements of various components in the projectareas were as follows:
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Table 5: PHYSICAL ACHIEVEMENTS OF VARIOUS COMPONENTS IN PUNJAB
S. Component/ 76-77 77-78 78-79 7-80 80-81 81-82 82-83 83-84No. Year
Area ('000 ha) 23 25 25 26 27 28 29 30Certified seed (tons) 38 90 - 145 92 19 31 30Fertilizer (tons)
N 8,670 13,366 12,169 11,730 12,230 13,516 13,527 14,755P 925 1,548 2,479 2,269 2,356 2,863 2,756 2,787K - - - _ _ - _ -
Subtotal 9,595 14,914 14,648 13,999 14,586 16,379 16,283 17,542
Demonstration (no) 12 12 13 103 80 90 50 50Yield (kg/ha)
Projected 1,350 1,500 1,700 1,900 2,000 - - -Achieved 1,400 1,420 1,880 1,940 1,710 1,720 2,010 850
3.22 A look at the physical achievements made revealed that the certifiedseed distribution increased from 38 tons in 1976-77 to 90 tons in 1977-78. In1978-79 there was no certified seed distribution in the project area. in1979-80 it was the maximum, at a level of 145 tons and later on the positionwith regard tc the distribution of certified seed deteriorated. Thefertilizer consumption on the other hand increased tremendously. Use ofnitrogen.ous fertilizers almost doubled and that of phosphatics increased bythree times. The yield also increased from 1,400 kg in 1976-77 to 2,010 kgper ha in 1982-83.
3.23 The CDS was also involved in training the farmers, seed treatment,fumigating the seeds in factories for the control of pink ball worm and alsodelinting the cotton seeds. The progress achieved under these components wasas follows:
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Table 6: TRAINING OF FARMERS, SEED TREATMENT, SEED FUMIGATIONAND SEED DELINTING TAKEN UP IN PUNJAB
Seed fumigation Area sown with acidFarmers trained Seed treatment in factories delinted seed
Year (No.) (tons) (tons) (ha)
76-77 5,069 155.477-78 5,142 186.1 - -78-79 5,142 280.0 616 -79-80 5,142 298.3 1,180 -80-81 5,142 328.8 1,040 -81-82 5,176 346.8 1,060 1,28082-83 5,176 512.7 1,223 4,00083-84 5,176 535.7 1,225 4,820
3.24 CDS in Maharashtra: In Maharashtra the State Government selectedAchalpur and Chandur Bazar revenue circles of Amravati district for locating arainfed unit of 50,000 ha as project area. The State Government had set up aProject Management Committee at the State level and Project Area Committee atthe district level to implement the project. The organizational strength inthe project area in 1981-82 was 255 as against 223 as per IDA appraisalreport. However, the number of development officers and field assistants wasless. The increased strength was on account of positioning of 100 scouts inthe years 1979-80 to 1981-82 to monitor the plant protection operations.
3.25 The physical achievements of various components under the projectarea were as follows:
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Table 7: PHYSICAL ACHIEVEMENTS OF VARIOUS COMPONENTS IN MAHARASHTRA
Component/year 76-77 77-78 78-79 79-80 80-81 81-82 82-83 83-84
Area ('000 ha) 1,284 24,474 47,326 53,287 56,472 63,539 61,140 59,346Certified seed (tons) 139 222 333 416 494 517 520 512Fertilizerconsumption (tons)N 292 477 805 1,038 1,704 2,286 1,990 1,532P 148 212 323 506 880 1,156 1,026 819K 60 65 129 399 728 817 936 582
Subtotal 498 754 1,257 1,943 2,312 4,259 3,992 2,933
Demonstration (no) - 750 1,200 1,100 750 680 DiscontinuedYield (kg/ha)
Projected 380 440 500 56G 620 - - -Achieved 469 557 614 609 513 651 650 520
3.26 The distribution of improved seed increased from 139 tons in 1976-77to 520 tons during 1982-83. The introduction of pest scouting systemcertainly helped in reducing the number of sprays undertaken by the farmers.The yield increased from 469 kg per ha in 1976-77 to 651 kg in 1981-82.
3.27 The total expenditure on CDS was Rs 11.476 millions as against theprovision of Rs 7.891 million.
Seasonal Credit Fund (SCF)
3.28 The project provided for the supply of short-term seasonal creditfor financing project inputs. ARDC extended refinance for short-term credit,on the lines of the terms and conditions on which it was being provided byReserve Bank of India to cooperatives. Based upon the guidelines framed byReserve Bank of India for sanction of limits for seasonable agriculturaloperations, ARDC prepared a detailed procedure for operation of seasonalcredit fund and circulated the same among the participating banks. InDecember 1975, the ARDC set up a Seasonal Credit Fund for providing refinanceto participating banks for onlending to cotton growers in the identifiedproject areas for incremental inputs. In February 1976, it prepared detailedguidelines for preparation of credit plans for seasonal credit fund. It alsoprescribed the set of documents and finalized banking plans in consultationwith the State Governments and participating banks every year and also thelending targets. Credit requirements for seasonal credit were worked out onthe basis of the coverage of area, the varieties of improved cotton to begrown, as recommended by State Governments, and the scales of finance fixedfor each variety. In view of the fact that all the cotton growers of theproject areas were not the members of Primary Agricultural Credit Societies(PACSS), co-mercial banks were required to lend to the nonmembers, and State
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Government Departments and Project Officers were required to extend necessaryassistance to commercial bankis. The banking plan indicating the allocation ofphysical and financial program for cooperative and commercial banks wasfinalized in the month of December every year. While allocating the programamong participating banks, concerned State Governments, Project implementingauthorities and Reserve Bank of India were consulted by ARDC and separateshort-term credit limits for cotton were sanctioned every year.
3.29 The data relating to sanction of seasonal credit limits by NationalBank, disbursement of funds by participating banks and refinance disbursed byARDC during 1976-77 to 1983-84 are shown in Annex Tables 1 to 4. The dataindicate that the performance of financing banks in terms of disbursementsmade and refinance availed of by them under seasonal credit was notsatisfactory in the initial period; the response of State Cooperative Banksand Commercial Banks was found to be inadequate. The main reasons for poordisbursement in the initial years pertained to delays in selection of projectareas, approval of varieties of cotton and scales of finance, inability ofDistrict Central Cooperative Banks to draw the limits due to unsatisfactoryrecovery position, nonobservance of seasonality discipline, besides comfort-able resource position of State Cooperative Banks, particularly inMaharashtra. In the case of Punjab and Haryana aerial spraying of pesticidesdone by the respective State Governments financed from their own budgetaryresources resulted in a reduction in the flow of credit for pesticides, whichinvariably was the major component in the crop loan for cotton. Further, someof the cotton growers used less than the recommended quantity of fertilizersand pesticides and this resulted in lower credit needs. Some of the farmerspreferred to use their own resources for cotton cultivation. The studies con-ducted by the ARDC also revealed that commercial banks were not in a positionto effectively participate in the project due to poor branch network in thearea and inadequate field staff to supervise the loans as also on account ofscattered lending. Insistence on mortgage of land as security for the loan bycommercial banks was not acceptable to the cotton growers.
3.30 With the extension in implementation period from December 31, 1981to December 31, 1983, disbursements under seasonal credit fund showedconsiderable improvement from the year 1980-81 onwards. The Haryana StateCooperative Bank was the largest recipient of ARDC refinance under theseasonal loan account category, while the disbursement to the Punjab StateCooperative Bank was modest. In the case of Maharashtra, the disbursementswere very poor due to high level of overdues of Amravati District CentralCooperative Bank. To meet the requirements of cotton growers, MaharashtraState Cooperative Bank released funds from its own sources without availing ofrefinance facilities from ARDC, which was possible due to its comfortableresources position. Though credit limits were sanctioned to the MaharashtraState Cooperative Bank for the project area right from 1976-77 to 1979-80 nodrawer was effected on the limits in view of the reasons explained earlier.
3.31 The disbursements made by participating banks increased from Rs 7.5million (M) in 1976-77 to Rs 61.3 M in 1979-80 and thereafter reached the peaklevel of Rs 95.5 M in 1982-83. The overall shape of cooperative banks rangedbetween 77Z and 85Z of the total funds disbursed by the participating banks indifferent years (Annex 1). The performance of participating banks has beenanalyzed in greater detail in the following paragraphs.
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3.32 Cooperative Banks: The District Central Cooperative Banks were gen-erally the major drawers of short-term credit for agriculture under ICDP. Theshort-term cooperative structure in Haryana and Punjab provided substantialquantum of seasonal credit and the refinance assistance availed of by themreached the maximum in the year 1982-83. However, the same tempo could not bemaintained in the year 1983-84. The particulars of disbursements made bycooperative banks in Haryana, Punjab and Maharashtra are tabulated below:
Tsble 8: SHORT-TERM CREDIT DISBURSED BY COOPERATIVE BANKS(Rs. Million)
Year Haryana Punjab Maharashtra Total
1976-77 0.906 2.613 2.733 6.2521977-78 7.356 2.300 4.377 14.0331978-79 19.530 3.545 3.079 26.1541979-80 41.734 5.500 5.109 52.3431980-81 45.262 7.200 5.531 57.9931981-82 50.261 8.500 - 58.7611982-83 71.520 10.149 81.6691983-84 58.190 1l.100 - 68.290
Total 294.759 49.907 20.829 365.495
3.33 Commercial Banks: In all, ten commercial banks participated in theproject area. The disbursements by commercial banks for financing seasonalcredit requirements of cotton growers increased from Rs 1.25 M in 1976-77 toRs 16.33 M in 1981-82. However, in relative terms the commercial banks playeda minor role as their share in the total disbursements in all the three Statesvaried from 15% to 231 among different years. Because of the thin spread ofbranches, commercial banks were not able to make much headway in the projectarea in Maharashtra. The dominance of cooperatives in the States of Punjaband Haryana made it difficult for the commercial banks in showing a betterperformance. The particulars of seasonal credit disbursements made by commer-cial banks are given below:
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Table 9: SHORT-TERM CREDIT DISBURSED BY COMMERCIAL BANKS(Rs. million)
Year Haryana Punjab Maharashtra Total
1976-77 0.356 0.892 - 1.2481977-78 1.716 2.146 0.294 4.1561978-79 2.700 2.272 0.460 5.4321979-80 5.483 2.561 0.914 8.9581980-81 4.507 3.102 2.711 10.3201981-82 7.500 4.683 4.146 16.3291982-83 5.782 3.430 4.623 13.8351983-84 6.180 3.788 4.346 14.314
Total 34.224 22.874 17.494 74.592
3.34 Refinance assistance against short-term loans provided by ARDCdiuring the project period in the three States are indicated in Annex Tables 2to 5. The State-wise performance of participating banks is reviewed in thefollowing paragraphs.
3.35 During the project period, Haryana State Cooperative Bank and theDistrict Central Cooperative Bank of Sirsa and Hissar, and nine commercialbanks participated in the program. Cooperative banks played a more dynamicrole in the project area in financing seasonal credit. Since the CooperativeBanks were already engaged in providing finance for seasonal credit for agri-cultural crops they had no difficulty in participating in the projecteffectively. The credit limits sanctioned to Cooperative Banks increased fromRs 9.00 M in 1976-77 to Rs 45.00 M in 1979-80 and thereafter reached the high-est level of Rs 75.00 M in the year 1982-83. Short-term credit limitssanctioned to commercial banks in Haryana were around 10% of the total creditlimits sanctioned by ARDC. The absolute amount of refinance drawn by commer-cial banks increased from Rs 0.301 M in 1976 to Rs 6.75 M in 1981-82.
3.36 Punjab: Faridkot District Central Cooperative Bank and sevenCommercial Banks participated in Muktsar Block. Its disbursement reached themaximum level of Rs 10.149 M in 1982-83 from the modest level of Rs 2.613 M in1976-77. The increased disbursement was on account of introduction ofimproved system of sanction of credit limits and disbursements to the membersof the societies. The members were issued passbooks and checks to draw loansubject to the credit limit indicated in the passbook. Commercial Banks' dis-bursements ranged between Rs 0.892 M in 1976-77 and Rs 4.683 M in 1981-82.Refinance drawn by commercial banks was nearly 50% of credit limits sanctionedto them, whereas the Cooperative Banks availed 90% of credit limits sanctionedto them. The oA'erall disbursements by participating banks in Punjab attainedthe maximum level of Rs 13.88 M in 1983-84. The refinance drawn byparticipating banks was Rs 12.499 M in 1983-84.
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iI3.37 Maharashtra: In Maharashtra, Amravati District Central CooperativeBank and four commercial banks were identified as participating banks. Thoughcredit limits were sanctioned to the State/District Central Cooperative Bankit could not avail of refinance assistance from ARDC for various reasons.While on one hand the comfortable financial position of State Cooperative Bankreduced the need for refinance, the unsatisfactory overdues position ofAmaravati District Central Cooperative Bank and noncompliance of seasonalitydiscipline ruled out, on the other hand, the possibility of availment ofrefinance. In the year 1978-79, the Government of Maharashtra declaredAmravati affected by drought, and recovery of short-term dues was postponed.Despite these difficulties, Amaravati District Central Cooperative Bankdisbursed funds to the extent of Rs 2.73 M, Rs 4.4 M and Rs 3.08 M in theyears 1976-77, 1977-78 and 1978-79 respectively. Its disbursements reachedthe highest level of Rs 5.5 M in the year 1980-81, which was less than the'basic level' fixed for the District Central Cooperative Bank. Participationof commercial banks in the project was very modest until 1979-80. However,the level of disbursement increased from next year and reached a maximum of Rs4.62 M in 1982-83. The commercial banks in Maharashtra were reluctant toparticipate in the project due to low priority accorded by the StateGovernment in regard to recovery of their dues under monopoly procurementscheme and insistence of levying a guarantee fee of 12Z.
3.38 The total reimbursement claimed from IDA under SCF component was tothe extent of Rs 63.62 M. The year-wise and State-wise particulars of claimslodged by National Bank with Government of India/World Bank were as follows:
Table 10: YEARWISE AND STATEWISE CLAIMS FOR SEASONAL CREDITFUND FILED BY ARDC WITH GOI/WORLD BANK
(Rs Million)
Year ending Punjab Haryana Maharashtra Total(1) (2) (3) (4) (5)
June, 1978 1.891 0.935 0.178 3.004June, 1979 1.332 9.533 - 10.865J=ne, 1980 15.662 1.970 0.617 18.249June, 1981 3.552 1.419 1.019 5.990June, 1982 2.275 5.393 1.019 8.687June, 1983 1.267 13.798 0.356 15.421June, 1984 0.139 1.244 0.021 1.404
Total 26.118 34.292 3.210 63.620
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Term Loan
3.39 Tne project envisaged provision of term credit for making improve-ments in existing ginnery and cotton seed processing units and for setting upnew ginne-y and seed processing units in the project area in the States ofHaryana and Maharashtra. In the case of Maharashtra, the project area forthis component was extended in August 1980 to cover the entire State. Themain objective in incorporating these items in the project was to introducepractical and effective means of improving the quality of lint-produced andensuring better by-product recovery. The components envisaged for financingunder the project and actual achievements thereof are compared below:
Table 11: PROCESSING COMPONENTS ESTABLISHED INHARYANA AND MAHARASHTRA
As per appraisal Achievementreport Haryana Maharashtra
Unit Cost Unit Cost Unit CostItem (Rs million) (Rs million) (Rs million)
Ginning ImprovementReplacement of gin
saws/saw sharpeners - 0.800 - - - -
Precleaners forroller gins 20 2.880 - - - -
Additional capacityfor roller gins andprecleaners press 5 11.600 - - - -
Higher capacity rollergins and presses 2 6.400 - - - -
High capacity sawgins and presses 2 4.928 3 22.174 - -
Presses 6 5.952Initial capital forhigh capacityginneries - 5.600 - - - -
Subtotal - 38.160 - 22.174 - -
Cotton Seed Processing
Modern expeller50 ton/day capacity 4 17.280 - - - -
Combination expellercum solvent extractionplant 2 36.864 2 66.676 2 70.925
Vanaspati plant 100ton/day capacity 1 9.352 - - - -
Subtotal - 63.496 - 66.676 - 70.925
TOTAL - 101.656 - 88.850 - 70.925
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3.40 Against the provision of Rs 101,656 M, Haryana and Maharashtratogether had utilized Rs 159:775 M towards procassing components. With regardto modernization and augmentation of roller gins practically no progress wasmade as the factory owners did not show any interest due to lack of priceincentive for a clean gin product.
3.41 High capacity saw gins and cotton seed processing plants establishedin Haryana and Maharashtra are as under:
(a) Haryana
(i) High capacity ginneries at Ding, Ratia and Bhattukalan;
(ii) Cotton seed crushing cum solvent extraction units at Ding andRatia.
(b) Maharashtra
(i) Solvent extraction plant at Amravati;
(ii) Cotton seed crushing cum solvent extraction plant at Parbhaniand cotton seed processing plants at Hingoli and Gangakhed inParbhani district. -
3.42 The Statewise particulars of term loan outlay, commitments, achieve-ments and funds availed from IDA are indicated below:
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Table 12: LONG-TERM LOANS FOR THE GINNING AND COTTON SEEDPROCESSING UNITS IN HARYANA AND MAHARASHTRA
(Rs. Million)
ARDCSanctioned refinance ARDCproject commit- Actual refinance IDA funds
Project outlay ment cost ment availed
HaryanaCottonseed processing complexat Ding by HAFED 19.830 11.646 23.264 11.645 8.734
Ginning complexes ac Ratia andDing by HAFED 10.816 6.249 12.152 6.249 4.688
Ginning complex at Bhattukalanby HAFED 10.022 5.968 10.022 5.968 4.476
Cottonseed processing complexat Ratia 43.412 25.627 43.412 25.627 19.220
Subtotal 84.080 49.490 88.850 49.489 37.118
MaharashtraSolvent extraction unit atAmravati by MOCICOL 6.204 3.200 6.500 2.962 2.222
Setting up of cotton seedprocessing unit at Hingoli,Gangakhed and solvent extractionunit at Parbhani 71.936 /a 42.892 64.425/a 38.136 28.602
Subtotal 78.140 46.092 70.925 41.098 30.824
TOTAL 162.220 95.582 159.775 90.587 67.942
/a Expenditure of Rs 7.511 M could not take place before March 31, 1984.
3.43 ARDC disbursed Rs 90.587 M as against commitment of Rs 95.582 M andclaims to the extent of Rs 67.942 M were filed with the GOI/World Bank. ARDCdisbursement in respect of Maharashtra aggregated to Rs 41.098 M leaving a gapof Rs 4.994 M. The gap was attributable to nonavailment of bank finanLe bythe implementing agency namely Maharashtra State Oilseeds, Industrial andCommercial Corporation Limited (MOCICOL) before the closing date as certainproject components, i.e. civi. works, plant and machinery were not completedbefore March 31, 1984.
3.44 The yearwise and Statewise claims filed by ARDC for term loans withthe GOI/World Bank were as follows:
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Table 13: YEARWISE STATEWISE CLAIMS FOR LONG-TERM LOANSFILED BY ARDC/NABARD WITH THE GOI/WORLD BANK
(Rs. Million)
Year ending Punjab Haryana Maharashtra Total
June 1978June 1979June 1980 - 7.65 1.92 9.57June 1981 - 5.77 0.30 6.07June 1982 - - - -June 1983 - 7.86 20.79 28.65June 1984 - 15.84 7.81 23.65
TOTAL 37.12 30.82 67.94
3.45 The ARDC was entitled to the reimbursement from GOI/World Bank at75% lending provided by it to the financing banks over and above the 'basicLevel' which had been defined as the amount of credit disbursed by cooperativeand commercial banks in the project area during calendar year 1975. In thecase of shor_ credit fund, the banks were allowed to avail of ARDC's refinanceassistance at 90X of the loans advanced by them. The commitments of ARDC andachievements with regard to short-term credit fund to the farmers and long-term loans were as follows:
Table 14: COMMITMENTS OF ARDC AND ACHIEVEMENTS WITH REGARD."O SCF AND TERM LOANS
(Rs. Million)
Commitment Achievements ARDC IDA fundsComponent of ARDC of Bank loans refinance availed /b
SCF 572.602 440.087 365.675 /a 63.620Long-termloans 95.582 113.275 90.587 67.942
TOTAL 668.184 553.362 456.262 131.562
/a Incremental refinance was to the extent of Rs. 84.827 M.7i Claims lodged at 75% of ARDC refinance.
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Project Cost
3.46 rhe estimated project cost and the actual expenditure during theimplementation of the project from 1976-77 to 1983-84 was as follows:
Table 15: AGENCYWISE AND COMPONENT-WISE PROJECT COST AND EXPENDITURE(Rs. Million)
Estimatedproject cost Expenditure
Government AgenciesICARAdministration and training 1.6 7.8Technical assistance 7.2 2.3
UniversitiesHaryana 7.2 7.6Maharashtra 24.0 32.3Punjab 4.0 4.7
Cotton Development ServicesHaryana 11.2 14.0Maharashtra 8.0 11.5Punjab 2.4 2.7
Contingencies 13.6 6Subtotal 79.2 82.9
Onlendi7jSCF 80.0 94.3Ginning and cotton seed processing 95.2 159.8Contingencies 33.6
Subtotal 208.8 254.1
TOTAL 288.0 337.0
3.47 Against project provision of Rs. 288.0 M, expenditure reported wasRs. 337.0 M. In fact, it could be still higher, had Haryana and Punjab bookedexpenditure incurred on aerial spraying under which the two states togethercovered gross area of 0.62 M ha during 1976 to 1983-84. Two states have beenundertaking aerial spraying of cotton on Government account and debiting theentire cost as short-term (taccavi) loan which was not reimbursed as taccaviloan carries lesser rate of interest, 8X or so, than the specified IDA rate ofinterest of 11X.
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1.48 Main reason for exzcess expenditure is that where as stipulatedproject duration was 1976-77lto 1980-81, it was extended first up to end-December, 1983 and then up to March 31, 1984. Another reason for increasedcost has been steep price escalation, particularly in the case of processingcomponents. Of three ginneries established by HAFED, third ginnery set up atBhattukaian alone costs Rs. 10.022 M, whereas other two ginneries costs Rs.12.152 M established in the earlier years of the project. Similarly, cottonseed processing plant setup at Ratia later in the project costs Rs. 43.412 M,as against the one set up earlier at Ding at a cost of Rs. 23.264 M.
3.49 The component-wise details of the expenditure for the Universitieswere as follows:
Haryana Maharashtra PunjabHAU PKV MPKV MAU Total PAU
Universities
Land development - 1.06 0.17 0.08 1.31 0.11Civil works 2.41 5.18 3.15 2.94 11.87 1.61Staff & operations 1.90 3.13 1.62 1.91 6.66 1.44Lab equipments andspares 1.07 2.02 0.99 1.01 4.02 0.65
Farm/seed processingequipments 2.24 5.88 1.52 1.08 8.48 0.87
TOTAL 7.62 17.87 7.45 7.02 32.34 4.68
3.50 It will be evident from above that the Agricultural Universitieshave established infrastructure and laboratories have been suitably equipped.Agricultural Universities in Maharashtra, notably Akola University has set upgood seed production/processing facilities. Hissar Agricultural Universitythough has established good seed production unit at Sirsa, has no seedprocessing facilities of its own though State Seed Development Corporationunder National Seed Project has set up a cotton seed processing plant atSirsa. Punjab University, unfortunately, has yet to set up a good seedproduction/processing unit.
3.51 Under the Cotton Development Service, civil works were undertakenand equipment purchased for plant protection purposes. The details of theexpenditure under CDS in the participating States were as follows:
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Item Haryana Maharashtra Punjab
Staff 10.98 10.11 1.38Civil works/equipments 3.07 1.36 1.29
TOTAL 14.05 11.47 2.67
3.52 Major shortfall in project provision utilization has been ontechnical assistance component. Against provision of Rs. 7.2 M, utilizationis not more than Rs. 2.3 M, because ICAR opting for Indian consultantsresulted in savings of over Rs. 4.9 M. Also out of 12 advance degree fellow-ships, only four were availed. The details of the expenditure incurred byICAR were as follows:
(Rs. million)Expenditure
ICARSupervision and trainingLaboratory 4.88Staff 0.80Equipment 2.10Stipends/travel 0.04
Subtotal 7.82
Technical assistanceCollaborative arrangement 0.52Advance degree fellowships 1.11Study tours 0.68
Subtotal 2.31
Project Financing
3.53 IDA was expected to finance 50% of the total project costs, i.e.100% of the foreign exchange costs and about 21% of local costs. The totalIDA credit was US$18.0 million and the remaining was to be met by theparticipating state governments/agencies. Of the total IDA credit about 22%would support the costs of research and CDS through government agencies and78% would finance growers incremental credit needs (42%) for ginning andprocessing (36Z).
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Loan Allocation and Disbursement
3.54 The disbursement was slow in the beginning. However, by theextended closing date the credit amount was utilized in full except for asmall amount of US$6,383.0 which was cancelled. The category-wise total dis-bursements under this project were as follows:
Table 16: CATEGORY-WISE IDA DISBURSEMENTS(US$ million)
TotalOriginal Revised disbursement
Item allocation allocation claimed
Category ICivil works, CDS,ICAR equipment 2.5 2.5 2.766
Category IIConsultancy, overseas training 0.8 0.3 0.290
Category IIILong-term loan for ginning andprocessing complexes 5.4 7.4 7.068
Short-term loans for farmers 7.5 7.8 7.849
Category IVNot allocated 1.8 - -
TOTAL 18.0 18.0 17.973
3.55 From the above table it will be observed that the IDA creditutilization was almost 1001. The utilization for short-term loans and long-term loans for SCF component and ginning and processing complexes exceeded theoriginal allocation, whilst for consultancy and training was below theappraisal estimates.
IV. INSTITUTIONAL PERFORMANCE AND DEVELOPMENT
Project -Coordination
4.1 The Project Coordination Committee met regularly, twice yearly, notas fragment as for SAR Schedule of once per month during early stages and atleast quartsrly later on. During 1983 it met only once and the last meetingwas held in March 1984. The Project Management Committee regularly monitored
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implementation at the state level. Project Coordination Unit at the nationallevel was understaffed and therefore project monitoring was sometimes delayed.
4.2 Implementing Agencies. The Indian Council of Agricultural Research,concerned state agricultural universities, Cotton Technological ResearchLaboratory, Bombay, Agricultural Refinance and Development Corporation (nowNABARD), and State Agricultural Departments of Maharashtra, Haryana and Punjabimplemented the project.
4.3 The State Governments showed laxity in recruiting sufficient staff, inparticular key personnel like Cotton Development and Plant Protection Of-ficers.1 Altho-.gh, Haryana Government appointed a Project Director andpositioned him in the project area, the Punjab and Maharashtra States desig-nated Joint Directors working at their State headquarters, far way from theproject areas to supervise the project. The state Governments did not ensurethe production and distribution of required quantity of certified seed andeffective plant protection against pests.2 Various legislations thoughenacted as required under the project, were not enforced.
Cotton Research
4.4 For strengthening research capability of agricultural universities, ICARgave financial support &s per its funding p-ctern for components like addi-tional staff, laboratory equipment, etc. Universities have definitelyutilized this assistance. The ICAR engaged only local consultants foradvising research programs in the field of Breeding, Plant Protection andAgronomy. The universities have not been able to produce superior mediumstaple varieties with compact plant type. It is to the credit of foreignconsultants (M/s. Klattor and Sachs) who visited briefly, to introduce theconcept of pests scounting for need-based spray. Engagement of foreignconsultants might have infused new ideas in the project. ICAR also failed todevelop short-term consultancy in plant physiology, water management, seedproduction, etc. Against the provision of twelve advance degree fellowships,ICAR could utilize only four.
4.5 The installation of and operation of processing units remained behindschedule. In the case of ginning and processing units in haryana, technicalaspects relating to the selection of press and size of saw gins caused some
1As indicated in the Borrower's comments attached as Annex 2, the HaryanaGovernment disagrees with this assessment, indicating that recruitment ratescould not be expected to exceed those likely to eventuate under existingprocedures and regulations.
2As conveyed in Annex 2, the Borrower observes that production anddistribution of certified seeds is largely a commercial venture and thatrelated sales are determined by market conditions.
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delay in finalizing the banking arrangements. There was shortage of cementand bricks especially during 1979-80 to 1981-82. Lack of experience on thepart of HAFED caused some delay in the finalization of tenders. the issue ofimport license and granting of clearance for foreign exchange and of permis-sion to open letter of credit against supervisory erection charges weredelayed. Nonavailability of electricity connections and lack of adequatesupply of expeller cakes for solvent extraction unit was faced at Amravati inMaharashtra. There was low utilization of installed capacity of ginneries andcotton seed processing units. The solvent extraction plant at Amravati wasoperated at 30% of the installed capacity.
V. PROJECT IMPACT
5.1 ImPact of the Research Component on Cotton Production and Upgrading
BRearch: Besides providing the additional infrastructure for further speedyprogress in research, the following benefits have accrued:
(a) Research facilities in five agricultural universities operatingfor the benefit of the major cotton producing areas of the countryboth under irrigated and rainfed conditions have ben improved forintensifying multi-disciplinary research on field-orientedproblems.
(b) Several improved medium staple varieties and hybrids and desicotton cultivars have been released and the recent productionfigures show considerable rise in this staple category as alsoshort staple. A large volume of breeding material has also beengenerated and from the pipeline of breeders, a number of them mayemerge soon as potential high-yielding varieties.
(c) The large number of low cost or low cost high benefit technologieshaving potential practical application for improving irrigated andrainfed productivity have been evolved/identified, demonstratedand popularized.
(d) Efficiency of plant protection for cotton with reduced cost, lowpollution levels, balanced ecosystem, need-based integrated pestmanagement principle has been demonstrated for sustaining thecontinued interest of the farmer in the cotton cultivation.
(e) Adequate production of breeder and foundation seed of importancevarieties/hybrids was ensured.
(f) Trained manpower, especially of scientific and developmentofficers was made available for propagating cotton productiontechnology.
(g) Large awareness has been created among the various categories ofcotton development workers and , considerable band of cottongrowers in the three States by imparting training in modernproduction and processing technologies and the impact willaccelerate further promotional efforts for increasing the produc-tion and improving the quality of cotton.
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(h) The philosophy and approach of ICDP and the achievementsdemonstrated have permeated into the cotton production systems inother parts of the country.
(i) It has been demonstrated that by growing the latest improvedvarieties/hybrids and application of the modern recommendedpackage of practices, the yield can be improved in rainfedarhoreem, rainfed hirutFum, rainfed hybrids and irrigatedvarieties in these States by 100,150,200 and 250 kg lint/harespectively with reduced inputs, scientific approach and thusachieve high cost benefit ratio.
5.2 Achievaments in Production Technologiea:
(a) The optimum time of sowing, plant population and fertilizer dosehave been worked out for the newly recommended varieties in northzone states of Punjab and Haryana and also the central zoneMaharashtra.
(b) Skip row planting was demonstrated to be profitable and ad-vantageous than solid planting for saving irrigation water, butsolid planting was superior in yield.
(c) Use of gramaxone and Diuron at appropriate doses controlled theweed flora in the irrigated areas of Haryana.
(d) In addition, the advantage of legume cotton rotation, use ofdefoliants like MSMA, Bolls eye and Paraquat to check excessivegrowth and maturity, proper scheduling of irrigation, use of slowrelease nitrogen fertilizers, role of zinc application, nutritionrequirements for various rotation systems, skip row furrowirrigation, use of cycocel for flowering control, etc. have beenidentified for the irrigated cotton in Haryana and Punjab.
(e) In the predominant rainfed cotton state of Maharashtra, theresearch at the three agricultural universities on response ofmodern varieties to higher plant population and nitrogen levelswas able to demonstrate that the higher population and up to 50 kgN/ha improved the productivity considerably.
(f) By sowing in optimum time on ridges and furrows system in Vidarbhaand also using the contour gradient technique, higher yields ofseed cotton and better moisture conservation/rain water managementcould be ensured.
(g) The crow bar technique for planting rainfed hybrid cotton crop wasdemonstrated to yield sizeable (up to 20%) increased yields. Thisis helpful to maximize the rainfed cotton production.
(h) Several risk distribution technologies like proper placement ofFYM, paired row planting, preplanting weedicide application usingbasalin, intercropping with blackgram short duration type T9, useof neem cake blended urea, etc. have been demonstrated (see a listof technologies, Annex Table 13).
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Pest ManaGrement
5.3 Scounting, sex pheromone technique for pest monitoring, economicthreshold levels for key pest, biological control, effective flowering periodfor spraying potent insecticides, proper/optimum use of synthetir pyrethroidsand conventional insecticides, integrated pest management using these techni-ques in combination with cultural and field sanitary practices have beenimproved/popularized/demonstrated. The resistance genotypes for major insectpests and diseases have been identified besides screening advanced breedingmaterial. Use of acid delinted fungicide coated seed warded off diseases verymuch.
5.4 The effectiveness of recommended plant protection practices is given inAnnex Table 14.
Economic Reevaluation
5.5 The investments financed under the project have generated benefits atthree levels, viz., (i) cotton growers; (ii) ginning units; and (iii) cottonseed processing units. The investments at these levels were mainly financedby bank loans and refinanced by ARDC. ARDC provided refinance, from aspecially set-up Seasonal Credit Fund, to cooperatives and commercial banksfor their onlending to cotton growers in the project areas for theirincremental seasonal input requirements. Refinance assistance was alsoprovided in respect of loans issued by cooperatives and commercial banks forsetting up ginning complexes and cotton seed processing facilities.
Cotton Cultivation
5.6 The use of improved seed varieties, plant protection and increased useof other inputs like fertilizers are expected to result in higher yields andlarger net income to the cotton growers participating in the project. Thus,the benefit at the farm level is related to the generation of annual netincremental income from the use of incremental inputs in cotton cultivation.This has been worked out as a difference in net income (at constant prices of1983-84) between the preproject year (1975-76) and the successive projectyears (1976-77 to 1983-84).
5.7 To estimate the net incremental income that accrued to the cottonfarmers from the adoption of improved cultivation practices, the time seriesdata made available by the Project Directors on costs of cultivation, yieldrates and prices of inputs and outputs in the project area, for the periodfrom 1975-76 (preproject period) to 1983-84, have been utilized. In the caseof Maharashtra (amravati district), the project authority could not furnishdata on costs of cultivation of cotton in the project area. For the purposeof estimating the net incremental income due to the projects, the costs ofinputs and the values of output (kapas), have been worked out at 1983-84constant prices. While in the case of Haryana and Punjab, the market priceshave been used for evaluating output (cotton), for Maharashtra, the statutorymonopoly procurement price fixed by the State Government has been used. Thedetails relating to area covered under the project, number of farmerbeneficiaries and disbursement of short-term credit under IDCP are given inAnnex Table 5.
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5.8 Use of Inputs: consistent with the objective of increasing the yieldlevels of cotton (kapas) gradually to the optimum level considered feasible inthe three districts, the project provided for a gradual stepping-up of thelevels of input use. Seed, fertilizer, plant protection, were consideredstrategic for increasing the yield rate and therefore, substantial increasesin the quantum of use of these inputs were postulated. For other inputs likehired labor, and irrigation (except Maharashtra) increases assumed weremodest. The improved seed varieties recommended in Haryana ana Punjab were320-F, H-777 and Bikaneri Narma and F-414. In Maharashtra the recommendedvarieties were H-4, B-1007, AK-235, SRT-1, A-4 and L-147. Alvhough seed ratesactually used (ranging from 12 to 15 kg/ha on an average) during the projectperiod were higher than those in the preproject period, it fell short ofrecommended rates (20 to 22 kg/ha) in Haryana and Punjab. Most farmers in theproject areas of these two states feel that using a seed rate higher than 15kg/ha would create problems in interculture and plant protection operations.In Maharashtra, the seed rates used were found to be close to the recommendedrates.
5.9 Though the project envisaged burning of cotton stalks and other cropresidues as an effective method of plant protection, it did not find wideacceptable among the farmers who continued to use cotton stalks as fuel.Against the recommended practice of five to seven sprayings of pesticides,farmers in Haryana and Punjab were observed to use thiree to four sprayings,depending upon the severity of the infection. in Maharashtra, the actualnumber of sprayings were lower at one to three.
5.10 In Sirsa and Faridkot districts, for which cost of cultivation data forproject beneficiaries were available, the value of fertilizers applied (atconstant prices registered an increase ranging from 100 to 200% during thisperiod. The input of hired labor (valued at constant prices) increased in1982-83 over the preproject year (1975-76) by about 30% in Sirsa and Faridkotdistricts.
5.11 Yield Rates: A major objective of the project was to raise the yieldlevels of cotton through investments in research and extension services andincreased credit facilities to farmers to enable adoption of improved tech-nology of cotton cultivation. The SAR has assumed that by the end of thefifth year of implementation of the project, average yield of cotton (kapas)per ha in the project area would increase from nine quintals (preproject) to16 qu4.ntals in Sirsa District, 12.5 quintals (preproject) to 20 quintals inFaridkot district and from 3.2 quintals (preproject) to 5.6 quintals inAmravati district. It was further postulated that continuation of researchand extension activities would enable yields to stabilize at 20 quintals perha in Sirsa, 25 quintals per ha in Faridkot and nine quintals per ha inAmravati districts from the ninth to twentieth years. While comparing theaverage yields achieved under the project during different years of implemen-tation with the above assumptions, due allowance has to be made for the basicdifference between the two estimates, while the SAR assumed yields are basedon assumptions of normal weather, the estimates of actual yields are subjectto year to year weather aberration. This point has greater relevance in thecase of Amravati district, where the entire project area is unirrigated.
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5.12 The estimated yields per hectare in the project areas were as follows:
Table 17: ESTIMATED PER HECTARE UNDER THE PROJECT(in quintals)
Year Sirsa Faridkot Amravati
1975-76(Proproject) 9.00 12.50 3.201976-77 13.98 14.00 4.691977-78 12.99 14.20 5.571978-79 15.00 18.80 6.141979-80 14.49 19.40 6.091980-81 15.00 17.10 6.181981-82 15.99 17.20 6.511982-83 17.01 20.10 6.501983-84 10.05 8.50 5.20
5.13 The data presented in Table 17 for the period 1976-77 to 1983-84indicate that despite increasing input levels, yield rates have been subjectto fluctuations from year to year, which is probably the result of variationsin weather conditions and other factors like crop damage due to insects andpests. However, the basic trend points to increasing yield rates. Excludingfrom consideration the data for the year 1983-84, during which the cotton cropwas subject to large-scale damage due to heavy infestation by bollworms, it isobserved that the level of yield postulated for the fifth year in the SAR wasactually achieved in e sixth and seventh years in Sirsa (15.99 quintals/ha)and Faridkot (20.1 quintals/ha) districts respectively and in the second yearin Amravati district (5.57 quintals/ha). In all the three districts, thehighest level of yield during the project period (1976-77 to 1983-84) wasattained in 1982-83, which corresponds to the seventh year to project. Inorder to assess whether the increase in yield rates compare favorably withthose assumed in the SAR, a trend line has been fitted on the basis of actualyield data to remove the seasonal variations. the actual yields and estimatedyields based on the trend equation are given in Table 18 (refer graph).
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Table 18: ACTUAL YIELD RATES AND COMPUTED YIELD RATES(Yield rates in quintals per ha)
Sirsa Faridkot AmravatiYear A C A C A C(1) (2) (3) (4) (5) (6) (7)
Proproject(1975-76) 9.0 - 12.50 - 3-.20 -1976-77 13.98 3.303 14.00 15.481 4.69 5.1251977-78 12.99 13.842 14.20 16.074 5.57 5.3501978-79 15.00 14.381 18.80 16.667 6.14 5.5751979-80 14.49 14.920 19.40 17.260 6.09 5.8001980-81 15.00 15.459 17.10 17.853 5.13 6.0251981-82 15.99 15.998 17.20 18.446 6.51 6.2501982-83 17.01 16.537 20.10 19.039 6.50 6.4751983-84 10.05 - 8.50 - 5.20 -
A = Actual yield rates.B = Computed yield rates.
Note: A linear trend equation has been fitted taking into account theactual yields given in Cols. (2), (4) and (6) and the estimated trendvalues based on the equation y = a + bt, where y = actual yield ratesand t = project years (1976 to 1982-83), are shown in Cols. (3), (5)and (7).
5.14 The estimated values (yields per ha) on the basis of the equation arecompared below with the SAR projections:
Fifth year Seventh YearSAR Trend SAR Trend
District yield yield yield yield
Sirsa 16.0 15.5 18.0 16.5Faridkot 20.0 17.8 22.0 19.0Amravati 6.2 6.3 7.1 6.5
5.15 The above comparison shows that the actual yields, adjusted forseasonal variations on the basis of trend equation, sre quite close to theyield levels assumed in the SAR for the fifth and seventh years. Thus, withthe strengthening of research and extension efforts and inputs use at in-creased levels, it should not be difficult to achieve the maximum yield levelsenvisaged in the appraisal report, although those may be attained with a lagof two or three years.
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5.16 Gross Value of Produce (Kapas): The average gross value of produceper hectare (Annex 6-7) in 1975-76, at 1983-84 prices, was Rs. 4,500 in Sirsa,Rs. 6,625 in Faridkot and Rs. 1,600 in Amravati. As a result of implementa-tion of the project, these values increased at 1983-84 prices to Rs. § ,505 inSirsa, Rs. 10,653 in Faridkot and Rs. 3,250 in Amravati in 1982-83. 1 Thus,the gross value of additional production is estimated at Rs. 4,005, Rs. 4,028and Rs. 1,650 per ha in the respective project areas.
5.17 Costs of Cultivatior.: In the preproject year (1975-76), per hacosts (at the constant prices of 1983-84) came to Rs. 2,599 in Sirsa and Rs.3,016 in Faridkot (Annex 9-10). With the project completion, these costs (at1983-84 prices) worked out to Rs. 3,727 in Sirsa, Rs. 4,157 in Faridkot in1982-83. Thus, the incremental costs are estimated at Rs. 1,128 and Rs. 1,141per ha in Sirsa and Faridkot respectively (Annex 6-7). Although data relatingto cost of cultivation were not collected by the Project Authority ofMaharashtra, information gathered from field visits and other sources indicatethat costs of cultivation had increased in Amravati too, though by a smallermagnitude as compared to the other two districts. According to some limiteddata available from other sources, the costs of cultivation per ha in 1982-83in Amravati could be placed at around Rs. 1,300 to 1,400 and incremental costsat around Rs. 600 to Rs. 700 per ha.
5.18 Net Income and Incremental Income: The net income at 1983-84 pricesincreased from Rs. 1,901 per ha in 1975-76 to Rs. 4,778 in 1982-83 in Sirsaand from Rs. 3,609 per ha to Rs 6,495 per ha in Faridkot (Annex 6-7). The netincremental income (i.e. difference between the preproject net income and netincome during project period) due to the adoption of improved technology ofgrowing cotton, worked out to Rs. 2,877 per ha in Sirsa and Rs. 2,886 per hain Faridkot in 1982-83. Though precise data are not available, indicationsare that in Amravati, average net incremental income would have reached in1982-83 a level of around Rs. 900 to Rs. 1,000 per hectare.
5.19 In the project areas covering Sirsa and Faridkot districts, theFinancial Rates of Return (FRR) exceed 100% i.e., infinity, because theadditional costs incurred during the crop season (May to November in produc-tion of cotton) are covered by the excess revenue accrued during the periodfrom November to January each year except in 1983-84 when the yield rate wasabnormally low due to pest infestation). In the absence of complete data inrespect of Amravati, the rate of return had not been worked out. But suchdata as are available given the indication that the Financial Rates of Returnwould have been fairly high in all the years except 1983-84. Economic Ratesof Return (ERR) also exceed infinity in both the districts, viz., Sirsa andFaridkot.
1/ Though the project was completed in 1983-84, comparison with preprojectlevel is made with reference to 1982-83 since, as mentioned earlier, theyields in 1983-84 were adversely affected due to the infestation of cropby bollworms.
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5.20 Sensitivity tests carried out on the basis of data for Sirsa andFaridkot indicate that in all these two regions, even with 50Z reduction inincremental yield, the Financial Rates of Return would continue to beinfinite. Even in absolute amounts, the returns would continue to be fairlyhigh (at Rs. 614 and Rs. 873 per ha respectively). However, this may nothappen in Amravati, where a 50% reduction in incremental yield would result int'.e return falling to a very low absolute level, which may inhibit the culti-vators initiative to aaopt improved methods.
Institutional Credit
5.21 In working out the size of SCF, institutional share of credit in theincremental input costs was estimated at appraisal to increase from itspreproject level of 35% to about 67% at the end of the completion of theproject. On the basis of data available on incremental costs of cultivation,area benefitted by the project and credit disbursements under the project, theshare of institutional credit in the incremental costs due to adoption ofimproved cotton cultivation technology is examined below for Sirsa andFaridkot districts.
Particulars - Sirsa Faridkot
Area benetitted in 1982-83 (ha) 1,039,560 29,125Incremental cost in 1982-83(at 1982-83 prices)Per ha (Rs.) 1,082 1,090Total costs (Rs. in millions) 151.0 31.7
Aggregate incremental creditdisbursements in 1982-83(Rs. in millions) 77.302 13.579
Percentage of credit disbursementsto total costs 51 43
5.22 It will be seen that the share of institutional credit into theincremental input costs increased to 51% and 43% respectively in Sirsa andFaridkot districts at the end of the project period, as against the assumedlevel of 67%.
Ginneries and Cotton Seed Processing Units
5.23 It has already been stated that though the project envisagedfinancing improvements to existing ginneries as well as setting up of newginnery units, actual financing were confined only to setting up of newginneries. Alcogether seven units--three ginneries (one each at Ding, Ratiaand Bhattukalan) and two seed processing complexes (one each at Ding andRatia) in Haryana, one solvent extraction plant (Amravati) and one seedprocessing complex at Parbhani in Maharashtra - were set up under the
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project. The ginnery at Bhattukalan was given only trial runs in 1983-84.The seed processing complex in Parbhani district (preprocessing and oil millsat Hingoli and Gangakhed and solvent extraction and refinery units) werecompleted between October 1983 and Mary 1984. The seed processing unit atRatia was completed only in December 1983. Likewise, though the seedprocessing complex at Ding was completed in February 1981, the unit has hadonly trial runs until 1983-84. Of the remuining four units, two units, i.e.,ginneries at Ding and Ratia were completed in February 1981, but these unitscould function only for a limited period up to the reference year, 1983-84based on which experience, it is difricult to assess what the financialviability of these plants would be under expected capacity utilizationconditions. The solvent extraction plan at Amravati was established inFebruary 1981. But this unit could not get adequate supply of decorticatedcake either from its associates or from the open market. To overcome thisproblem, MOCICOL purchased an old oil mill having a crushing capacity of 100tons per day, which, however, had not been functional until 1983-84. As aresult, the capacity utilization of the unit could not exceed 32% over theperiod 1980-81 to 1983-84. In view of the above reasons, no attempt has beenmade to assess financial viability of these units under normal capacityutilization conditions. However, in response to measures taken to overcomethe initial bottlenecks, the prospects of these units are briefly indicated inthe following paragraphs:
Haryana
5.24 Ginneries: Raw material availability for each of the three units atDing, Ratia and Bhattukalan (working for 240 shifts of eight hours each over aperiod of 120 days in a season) is estimated at 13,000 tons (kapas) perannum. Thus the requirement of all the three units set up under the projectis estimated at 39,000 tons (kapas) per annum. Considered against theestimated average incremental production of cotton in the project area inHaryana over the period 1980-81 to 1982-83 of 88,000 tons (kapas) ant the factthat the units existing in the preproject period were being fully utilized atthe preproject production level, the three additional ginning-cum-pressingunits are not expected to face any problem with regard to raw material avail-ability. The HAFED has since installed its own power generators in Decembe-1984 to overcome the power supply bottleneck, which was the major constrai-to full utilization of the ginneries earlier. Therefore, the units could ilFexpected to work for 120 days in a year.
5.25 Cotton Seed Processing Units: Until 1983-84 the unit at Ding hashad only trial runs. Barring 1983-84, when the cotton crop was damaged due tobollworm infestation, the utilization during trial runs ranged from 8,486 to8,833 tons (or 34-35% of installed capacity). The constraints to fullerutilization of capacity, such as low voltage, frequent interruption in powersupply, etc. have been removed with the installation of diesel power gene-rators. The reduction in demand caused by prolonged textile strike in Bombayhas also ceased to be a serious problem any more. The supply of raw materialfor the two new seed processing units, would also not constitute any problem,though it was desirable to educate the farmers against using cotton seedbefore deoiling as feed, since that results in wastage of feed where theformulated feed would be more digestible and of higher nutritional value. As
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against the total raw material requirement of the two units of 50,000 tons peryear, the average additional'availability of cotton seed over the period 1980-81 and 1982-83 (at 64% recovery) was 56,000 tons per annum (corresponding tothe average additional production of cotton (kapas) of 88,000 tons per annum).The raw material requirements of existing seed processing units (preproject)would have been fully met from the preproject production levels in the areaand such additional supplies from Punjab and Rajasthan as were normallyavailable.
Maharashtra
5.26 Cotton Seed Processing Complex (Parbhani). The total raw materialrequirement of the two oil mills (Hingoli and Gangakhed) is estimated at50,000 tons per year. The Maharashtra State Cooperative Marketing FederationLimited (MSCMFL) is the State Government's agent for procuring cotton underthe Monopoly Procurement Scheme which has been in operation in the State. Itprocures cotton from the prodicers and processes the same at the ginning andpressing factories situated at various procurement centers. After sellinglint bales, the MSCMFL sells the remaining cotton seeds by auction. Rawmaterial for the cotton seed processing units is largely procured from thecotton procurement centers in the project area, which covers four districts ofMarathwada region, viz., Parbhani, Aurangabad, Bhir and Nanded. On the basieof the average quantity of cotton procured in these four districts over thelast four years (1979-80 to 1982-83), the cotton seed available is estimatedat 1.24 lakh tons per year. Making due allowance for the raw materialrequirements of other mills in the area (all of them being village oil millsexcept one cooperative oil mill) estimated at 35,000 tons per year, thebalance of 89,000 tons are expected to be available for the two projectunits. Further, the sunflower seed produced in large quantities in the regioncan also be used as a substitute raw material for cotton seed.
5.27 Solvent Extraction Plant (Amravati): The solvent extraction plantat Amravati which was established in February 1981 was expected to process 100tons of cotton seed expeller cake per day. At the time of sanction, it wasassumed that supply of 45 tones of expeller cake would be available fromexisting old oil mills and the balance supply of 55 tons would be procuredfrom the market. However, the expected quantities could not be procured fromoutside. To overcome this problem, MOCICOL purchased an old oil mill havingcrushing capacity of 100 tons per day. But this had not been functional until1983-84. As a result, the capacity utilization of the unit could not exceed32% over the period 1980-81 to 1983-84.
Benefits at Macro Level
5.28 In the three selected districts, viz. Sirsa, Faridkot and Amravati,the project covered by 1982-83, an area of 2.30 lakh ha as against the targetof 1.83 lakh ha. The SAR had assumed that total additional production ofcotton (kapas), Would reach 1.06 lakh tons (kapas) by the end of the project(i.e., fifth year). As against this, the total additional production in 1982-83 (i.e., seventh year) in the project area was estimated at 1.54 lakh tons(kapas). This would have resulted in an additional supply of 0.49 lakh tonsof lint (32%) to the textile industry and 0.99 lakh tons of cotton seed (64%)to seed processing units. There is a loss of 4% while processing.
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5.29 The contribution of the project to Gross Domestic Product (GDP)during 1982-83 was Rs. 545.5 million (at 1983-84 prices) in the form ofadditional cotton production. The three new ginneries established under theproject in Haryana are expected to produce lint of higher quality compared tothat produced from the existing ginneries in the project area which useoutdated equipments and processes. But, the contribution of additionalginneries to GDP in terms of producing improved lint quality has not beenestimated for want of adequate data. However, their contribution would besizeable only in the future, as the ginneries were not being fully utilizeduntil 1983-84 because of delays in installation and various other constraints.The new cotton seed processing units installed under the project would ensurea higher percentage of recovery of oil and by-products of higher quality,e.g., cotton seed cake free of linters and hulls. These units, at fullcapacity utilization, would contribute to Gross Domestic Preduct (at 1983-84prices) Rs. 34 million by way of better oil recove-j and improved by-productutilization.
5.30 The annual incremental production, at 1982-83 yield level, of 1.54lakh tons of cotton (kapas) (equivalent to 0.49 lakh tons of lint) under theproject represents a saving in imports of the va'.ue of Rs. 857.5 million at1983-84 Domestic Prices. The cotton seed processing units would enable con-version, at full capacity utilization, of 1.0 lakh tons of cotton seed intohigh-valued by-products. Similarly, about 16,000 tons of refined oil valuedat Rs. 240 million woild substitute for current import requirements of edibleoils.
5.31 Regarding employment effects, the SA-1 estimated that nearly 1.2 lakhfarm families and 2.0 lakh laborers would be annually engaged in productionand harvesting of cotton. By 1982-83, when the actual araa covered under theproject constituted about 122 to 127% of the targetted areas, nearly 1.71 lakhfarm families were engaged in cotton cultivation. But the number of agricul-tural laborers benefitted annually from the project is estimated (assuming 250days of annual employment per laborer) at around one lakh. It is possiblethat due to reduced levels of inputs used, the employment generation fellshort of the target. At full capacity utilization, the new ginneries and seedprocessing complexes would provide employment for unskilled labor amounting to0.80 lakh mondays per annum.
Evaluation of Research/Development Component
5.32 As per requirement, Indian Institute of Management (IIM), Ahmedabad,was approached for project evaluation. The terms of reference conveyedwere: to fix benchmarks for various parameters like yield, varietal complexchange (area under long duration/short duration/upland/arboreum), quantitativechange in various parameters and project objectives like use of certifiedseed, adoption of pest management measures like field sanitation, etc.,improvement in gin product, cotton seed crushing and benefit resulting fromthe project implementation.
5.33 M/s. Tirath Gupta, C.G. Ranade and G.A. Patel undertook the studywith 1978-79 as reference year and submitted a report in October, 1980.Sample size used was 100 cotton growers, 85 in the project area and 15 ascontrol (nonproject area). Parameters used by the evaluation team were:
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(a) Awareness of farmers regarding the significance of soil analysis.
(b) Changes in the area allocated to cotton during 1976-77 to 1978-79compared to the total cultivable lands.
(c) Adoption of recommended cotton varieties and distribution ofcertified and/or improved seeds.
(d) Quantity of seeds per ha used by farmers vis-a-vis the recommendedseed rates.
(e) Farmers' awareness and perception regarding recommendations inrespect of sowing time, plant population, rouging, thinning andweeding.
(f) Recommendations for plant protection and their follow-up by farmerswith respect to use of pesticides, number of sprays, expensesincurred and purchase of plant protection equipment.
(g) Irrigation.
(h) Credit.
(i) Grading and Marketing.
5.34 Conclusions arrived at by the evaluation team were:
(a) Only 22Z of the growers appreciated the value of soil analysis andfollowed recommendations.
(b) 59% of the area owned by sample farmers were planted under cotton.
(c) A majority of farmers did not plant recommended varieties. lack ofawareness and seed of recommended varieties was the reason.
td) There was positive change in seed rate but gap between therecommended rate and actually used continued to be substantial.
(e) Regarding otpimum sowing time, thinning, rouging, farmers responsewas satisfactory but alike in project and control areas.
(f) Use of manures tas common but quantity limited to home supply.
(g) Only 50% of growers used basal dose. Farmers were not aware ofplacement advantage. However, quantity of fertilizer used andexpenditure were higher in project area than control area.
(h) Project efforts with regard to field sanitation did not appear tohave significant impact.
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(i) Hand sprayer was the most common equipment and considerable higherpercentage of projdct farmers owned the equipment as compared tocontrol area.
(j) As against recommended 5-7 sprays to protect the crop, projectfarmers used 3-4 sprays as compared to 2-3 by control farmers.
(k) 80% of project farmers reported their ignorance about pesticidesspray recommendations as compared to 100% in control area.
(1) Only 39Z of farmers availed aerial spray facilities.
(m) Quantity of chemical used and expenditure on plant protection washigher in project area as compared to control.
(n) 77% of the farmers approached cooperative institutions for theircredit needs.
(o) Borrowing in project areas was on an average Rs. 519 per ha ascompared to Rs 346 per ha in control areas.
(p) Cotton productivity in the project area has increased as compared tocontrol area. Productivity targets for different years have notbeen met and gap between targets and achievements widened overyears.
(q) 100% of farmers in the project area sold their produce to privateagencies and only a small fraction of farmers availed gradingfacilities.
Evaluation by ICAR
5.35 In 1980, ICAR constituted an expert team to evaluate progress andimpact of the project. The team consisted of Dr. C.T. Patel, ICMF (Surat);Dr. K.S. Kushwaha, Professor of Eminence, Rajasthan College of Agriculture,University of Udaipur; Dr. H.N. Byra Reddy, Director of Extension, AndhraPradesh Agricultural University; Dr. N. P. Wankhede, CICR (Nagpur). Expertteam submitted the report in February, 1982. Conclusions arrived at are asunder:
(a) Progress in strengthening of research facilities has beensatisfactory.
(b) In Breeding, attention has been mostly at evolving long staplehybrids particularly in Maharashtra. Hybrids evolved have not beenas popular as H-4.
(c) As 96% of the area is under rainfed/semi-arid conditions work onAsiatic cottons has not received much attention, so approach needsreorientation.
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(d) SRT-1 gave good response to Nitrogen application to the extent of100 kg per ha undei rainfed condition. This needs confirmation.
(e) Physiological research needs more emphasis, particularly on Asiaticcotton.
(f) None of the varieties tested found resistant to bollworms.
(g) Early maturing upland varieties developed in Punjab and Haryana havepermitted double cropping. However, breeding for appropriate planttype and agrotechniques needs more attention.
(h) Work on Desi cottons promising, but improvement of staple of thesetypes needed as Desi cottons are preferred because of pesttolerance.
(i) Seed production program falling short.
(j) Patchy germination in Punjab and Haryana needs an investigation.
(k) Critical stages of plant growth, rainfall and soil types needs to beworked out for irrigation water economy.
(1) Role of biotic agents to regulate the pest population in cotton eco-system needs concentration. IPM (Integrated Pest Management) so farfollowed is only for timing of chemical treatment.
(m) Use of synthetic prethroids needs to be judiciously adjusted withother measures to conserve biotic factors.
(n) Project has provided skeleton staff for plant protection.
(o) Operational research planning and impiementation not given consider-able thought.
(p) Specially designed project with development orientation, like ICDP,needs to be managed by experts in agricultural extension.
(q) ICDP needs to be evaluated for its cost benefit but there were noexperts in economics to gather required information.
(r)6 ICDP has proved to be very successful in accelerating the tempo ofresearch, development and extension work ard would play a great rolein increasing production per unit area and improving quality. Suchprojects should be started in other potential areas of the country.
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VI. WORLD BANK PERFORMANCE
Project Design and Appraisal
6.1 Integrated Cotton Development Project was formulated after adetailed survey all over the country and wide-ranging discussions with peopleinvolved in all sectors of cotton economy including cotton development,research, growers, traders, processors, textile people and financialinstitutions.
6.2 World Bank has been intimately involved right throughreconnaissance, identification and appraisal of the project. Preappraisalmission of Frank Lowenstein and Dr. Manning defined the issues well andsubsequent appraisal/follow-up missions of Dorris Brown aid G. Stern outlinedthe project components in great detail.
6.3 Supervision. The IDA supervision missions have been regularlyvisiting the project areas. They offered constructive suggestions, but by andlarge, the review missions monitored mainly financial aspects of theproject. They could have gone into details of the technical part as well.
6.4 One of the components in Punjab was the modernization/augmentationof the existing ginning facilities. Nothing could be done in this directionbecause interest rate charged on the funds made available by ARDC was 11%whereas Punjab Financial Corporation could finance at the rate of 9%. Thusfor World Bank aided projects to be effective, the final rate of interestcharged should not be more than the one available from existing financialagencies. The claiming of loan and submission of claims to the World Bankseems to be a quite complicated process. IDA may think of simplifying theirprocedure for lending and filing claims from the Bank.
6.5 In order to implement the project earnestly, the World Bank mayalways reserve a small amount in each project and position at least twopersons, a Technical Expert and an Economist to guide/act as a watchdog forensuring project implementation as per stated objective and norms.
VII. SUMMARY AND CONCLUSIONS
7.1 The major objectives of the Integrated Cotton Development Projectwere: (i) accelerate research to breed more suitable and high-yielding cottonvarieties; (ii) provision of improved seed and more intensive insect anddisease control services; (iii) modernization and extension of ginning andcotton seed processing; (iv) provision of seasonal credit to growers; and(v) training the research/development workers and farmers.
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7.2 As far as strengthening of research facilities is concerned, thisobjective has been achieved to a considerable extent. Laboratories have beenconstructed and suitably equipped. The research facilities in all the fiveagricultural universities have been tremendously improved for intensifyingmulti-disciplinary research. A large volume of breeding material has beengenerated and from the pipeline of breeders, a number of them may emerge soonas potential high-yielding varieties/hybrids. The low cost technology hasbeen evolved and demonstrated in the field. The use of integrated pestmanagement (IPM) has also been adopted by the farmers due to the continuousefforts of the Research and Development Officers involved in the project.Scientists and Development Officers have been trained in cotton productiontechnology. However, the new varieties released by agricultural universitieshave not covered wider areas. The agronomic, entomological and pathologicalstudies have mainly confirmed proven technology like dry sowing on ridgeshaving 0.2-0.4 contour gradient, intercropping, pests scouting, use ofsynthetic pyrethroids, etc. More emphasis may have to be given on disciplineslike plant physiology and water management. With regard to breeder and found-ation seed production, only PKV, Akola achieved notable success while otheruniversities have not been able to achieve their targets. Research scientistsof agricultural universities took a lot of pains to impart training to theofficers involved in cotton development services and farmers.
7.3 Cotton Development Service (CDS) organized by all the three stateswas by and large very satisfactory. However, non/less appointment of some keypersonnel like Cotton Development and Plant Protection Officers did hamper thedevelopment work. Nonenforcement of various legislations made CDS task littledifficult. The CDC officials demonstrated beyond doubt that given goodquality seed, efficient plant protection, credit and training in improvedproduction technology, the cotton yields can be appreciably stepped up.
7.4 Commendable progress has been achieved under the component ofginning and cotton seed processing. In Haryana, three high capacity saw ginshave been set up by HAFED at Ding, Ratia and Bhattukalan. The HAFED has alsoset up two modern combination expeller-cum-solvent extraction plants at Dingand Ratia. In Maharashtra, apart from adding solvent extraction unit to theiralready existing cotton seed processing plant at Amravati, MOCICOL has set upone combination expeller-cum-solvent extraction plant at Parbhani and twocotton seed expeller plants at Hingoli and Gangakhed. The operationalefficiency of these plants needs to be stepped up.
7.5 In Punjab, the ginnery owners did not show any in_erest ininstalling precleaners in the absence of price incentive for clean ginproduct. The higher rate of interest on IDA credit as compared to that beingcharged by local financial institutions in Punjab also resulted as a handicapin modernization of the existing ginneries in Punjab.
7.6 To help farmers in adopting improved cotton production technology,provision was also made for short-term seasonal credit by the cooperative andcommercial banks. Under this component, in Haryana a total amount of Rs.328.983 M was distributed by the banks. In Punjab, the total disbursemertswere Rs. 72.781 M whereas in Maharashtra the disbursements were Rs. 38.323M. The performance in Haryana and Punjab was commendable.
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7.7 The research workers were actively involved in training the Develop-ment Officers and farmers. Nine scientists working in the universities in thefields of plant breeding and plant protection had the opportunity of havingshort-term study tours to USA, Sudan, Peru and Turkey. Eight DevelopmentOfficers also visited USA and other countries to acquaint themselves with thelatest cotton production technology. The exposure of these scientists anddevelopment officers will be very useful in further cotton prouuction programsin the country.
7.8 The most positive gain of the project has been that the farmers havebecome aware of the improved cotton production technology, particularly in theuse of required quantity of quality seed, fertilizer, water management andadoption of phyto-sanitation/plant protection measures.
7.9 Overall, the project has been a success and has by and large servedthe purpose for which it was designed.
Issues and Lessons
7.10 A project having a number of components is likely to face coordina-tion problems and procedural delays in implementation. Short-term creditneeds were overgenerously estimated once the base year and considerable diffi-culties were encountered in harmonizing interest rates and refinanceconditions with commercial bankis. Some of the covenants proved verydifficult to implement and had to be relaxed, for example, legislationrestricting cultivation of permitted varieties only, mandatory control ofcotton plant residues, prohibition of blending seed cotton, etc. (Section 2.08Haryana Project Agreement).
7.11 From experience, it seems that SAR was optimistic in assessing thetime it would take to sort out basic issues in the initial stages and it wouldtherefore seem essential at project appraisal to discern realistically whatcan be achieved during the Project period.
- 49 ~ Table 1
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
Short-Term Seasonal Credit Disbursement Made byParticipating Banks (Year-wise and State-wise)
(Rs. million)
Banks 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 Total
CooperativePunjab 2.613 2.300 3.545 5.500 7.200 8.500 10.149 10.100 49.907Haryana 0.906 7.356 19.530 41.734 45.262 50.261 71.520 58.190 294.759Maharashtra 2.733 4.377 3.079 5.109 5.531 - - - 20.829
Subtotal 6.252 14.033 26.154 52.343 57.933 58.761 81.669 68.290 365.495
CommercialPunjab 0.892 2.146 2.272 2.561 3.102 4.683 3.430 3.788 22.874Haryana 0.356 1.716 2.700 5.483 4.507 7.500 5.782 6.180 34.224Maharashtra - 0.294 0.460 0.914 2.711 4.146 4.623 4.346 17.484
Subtotal 1.248 4.156 5.432 8.958 10.320 16.329 13.835 14.314 74.592
TOTAL 7.500 18.189 31.586 61.301 68.313 75.090 95.504 82.604 440.087
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Table 2
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
Short-term Seasonal Credit - ARDC Refinance Limits Sanctioned.Amount Dfsbursed by Participating Banks and Refinance Obtained byBanks from ARDC/NABARD in Sirsa/Hissar Districts of Haryana State
(Rs. million)
Banks 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 Total
CooperativeST credit limitsanctioned byARDC 9.000 15.500 20.000 45.000 60.000 60.000 75.000 75.000 359.300
Amount disbursedby participatingbanks 0.906 7.356 19.530 41.734 45.262 50.261 71.520 58.190 294.759
Refinance drawnby banks fromARDC - - 17.450 37.270 40.700 45.000 64.037 52.370 256.827
CommercialST credit limitsanctioned byARDC 0.779(4) 3.799(5) 3.067(5) 5.896(7) 5.090(7) 8.600(9) 7.650(8) 7.280(7) 42.161
Amount disbursedby pe-ticipatingbanks 0.356 1.716 2.700 5.483 4.907 7.500 5.782 6.180 34.224
Refinance drawnby banks fromARDC 0.301 1.545 2.430 4.930 4.030 6.750 5.200 5.560 30.746
TotalsST credit limitsanctioned byARDC 9.779 19.099 23.067 50.896 65.090 68.600 82.650 82.280 401.461
Amount disbursedby participatingbanks 1.262 9.072 22.230 47.217 49.769 57.761 77.302 64.370 328.983
Refinance drawnby banks fromARDC 0.301 1.545 19.880 42.200 44.730 51.750 69.237 57.930 287.573
Note: Figures in brackets indicate number of banks participated.
Table 3
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
Short-term Seasonal Credic - ARDC Refinance Limits Sanctioned,Amount Disbursed by Participating Banks and Refinance Obtained byBanks from ARDC/NABARD in Achalpur and Chandur Blocks of Amravati
District of Mahars-' a State(Rs. mill.
Banks 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 Total
CooperativeST credit limit
sanctioned byARDC 7.500 7.500 7.500 7.500 - - - - 30.000
Amount disbursedby participatingbanks 2.733 4.377 3.079 5.109 5.541 - - - 20.829
Refinance dravrnby banks fromARDC - - - - - -
CommercialST credit limitsanctioned byARDC 0.336 0.535 0.450 1.350 2.850 3.742 4.184 3.950 17.397
Amount disbursedby participatingbanks - 0.294(2) 0.460(2) 0.914(2) 2.711(3) 4.146(4) 4.623(4) 4.346(4) 17.494
Refinance drawnby banks fromARDC - 0.264 0.414 0.822 2.446 3.731 4.155 3.910 15.742
TotalsST credit limitsanctioned byARDC 7.836 8.035 7.950 8.850 2.850 3.742 4.184 3.950 47.397
Amount disbursedby participatingbanks 2.733 4.671 3.539 6.023 8.242 4.146 4.623 4.346 38.323
Refinance drawnby banks fromARDC - 0.264 0.414 0.822 2.446 3.731 4.155 3.910 15.742
Note: Figures in brackets indicate number of banks participated.
- i2 -
Table 4
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
'PROJECT COMPLETION REPORT
Short-term Seasonal Cred__ - ARDC Refinance Limits Sanctioned.Amount Disbursed by Participating Banks and Refinance Obtained by
Banks from ARDC/NABARD in Muktsar Block of Punjab State(Rs. million)
Banks 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 Total
CooperativeST credit limitsanctioned byARDC 20.000 10.000 3.500 5.500 10.000 12.000 10.000 12.000 83.000
Amount disbursedby participatingbanks 2.613 2.300 3.545 5.500 7.200 8.500 10.149 10.100 49.907
Refinance drawnby banks fromARDC - 2.070 3.150 4.950 6.480 7.652 9.000 9.090 42.392
CommercialST credit limitsanctioned byARDC 4.615 6.467 2.885 3.590 4.683 5.785 6.869 5.850 40.744
Amount disbursedby participatingbanks 0.892(4) 2.146(5) 2.272(4) 2.561(6) 3.102(6) 4.683(6) 3.430(7) 3.788(4) 22.874
Refinance drawnby banks fromARDC 0.177 1.931 2.045 2.300 2.787 4.232 3.087 3.409 19.968
TotalsST credit limitsanctioned byARDC 24.615 16.467 6.385 9.090 14.683 17.785 16.869 17.8OA 123.744
Amount disbursedby participatingbanks 3.505 4.446 5.817 8.061 10.3u2 13.183 13.579 13.888 72.781
Refinance drawnby banks fromARDC 0.177 4.001 5.195 7.250 9.267 11.884 12.087 12.499 68.360
Note: Figures in brackets indicate number of banks participated.
- 53 - Table 5
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
Coverage of Area, Number of Beneficiaries andDisbursement of Seasonal Credit Fund
Area 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84
Sirsa/HissarArea covered(ha) 39,000 66,760 87,050 110,980 118,390 115,570 139,560 121,570
Number ofbeneficiaries 23,886 40,363 62,390 68,189 75,700 80,000 105,000 122,500
Disbursementof loan(Rs. aillion) 1.262 9.172 22.230 47.217 49,769 57.761 77.302 64.370
FaridkotArea covered
(ha) 23,160 25,176 25,250 .26,146 27,492 27,612 29,125 31,188
Number ofbeneficiaries 5,069 5,142 5,142 5,142 5,142 5,176 5,176 5,176
Disbursementof loan(Rs. million) 3.505 4.446 5.817 8.061 10.302 13.183 13.579 13.888
AmravatiArea covered
(ha) 12,048 24,474 47,326 53,287 56,472 64,000 61,000 59,350
Number ofbeneficiaries 16,190 27,628 33,239 36,326 42,430 n.a. n.a. n.M.
Disbursementof loan(Rs. million) 2.733 4.671 3.539 6.023 8.242 4.146 4.623 4.346
TotalArea covered
(ha) 74,208 116,410 159,626 190,343 202,354 207,182 229,685 212,108
Number ofbeneficiaries 45,145 73,133 70,861 109,657 123,272 - - -
Disbursementof loan(Rs. million) 7.500 18.189 31.586 61.301 68.313 75.090 95.504 82.604
n.a. - not available.
Table 6
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
Gross Income, Net Income and Incremental Income at 1983/84 Prices - Sirsr District(Rs. per ha)
Preproject1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84
Gross value of output(cotton, kapas) @Rs. 200/Qtl. 4,500 6,990 6,495 7,500 7,245 7,500 7,995 8,505 5,025
Incremental overpreproject - 2,490 1,995 3,000 2,745 3,000 3,495 4,005 525
Total cash costof cultivation 2,599 3,180 3,115 3,387 3,338 3,364 3,733 3,727 3,669
Incremental overpreproject - 581 516 788 739 765 1,134 1,128 1,070
Net income 1,901 3,810 3,380 4,113 3,907 4,136 4,167 4,778 1,356
Incremental netincome - 1,909 1,479 2,212 2,006 2,235 2,266 2,877 545
Financial Rate of Return - Infinity
Table 7
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
Gross Income, Net Income and Incremental Income at 1983/84 Prices - Farldkot District(Rs. per ha)
Preproject1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84
Gross value of output(cotton, kapas) @Rs. 200/Qtl. 6,625 7,420 7,526 9,964 10,282 9,063 9,116 10,653 4,505 1
Incremental overpreproject - 795 901 3,339 3,657 2,438 2,491 4,028 2,120
Total cash costof cultivation 3,016 3,313 3,599 4,015 4,094 3,975 3,988 4,157 3,947
IIncremental overpreproject - 297 583 999 1,078 959 972 1,141 931
Net income 3,609 4,107 3,927 5,949 6,188 5,088 5,128 6,495 558
Incremental netincome - 498 318 2,340 2,579 1,479 1,519 2,886 3,051
Financial Rate of Return = Infinity
Table 8
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
Gross Income, Net Income and Incremental Income at 1983/84 Prices - Amravati District(Rs. per ha)
Preproject1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84
Gross value of output ;(cotton, kapas) @Rs. 200/Qtl. 1,600 2,345 2,785 3,070 3,045 2,565 - 3,250 2,600
Incremental overpreproject - 745 1,185 1,470 1,445 965 - 1,650 1,000
Total cash costof cultivation 743 - - - - - - - 1,390
Incremental overpreproject - - - n.a. - - - - 647
Net income 857 - - - - - - - 1,210
Incremental netincome - - - - - - - 353
Financial Rate of Return = Infinity
Note: Project authority in Maharashtra did not collect any data on cost of cultivation. However, according to somelimited data available from other sources, the cost of cultivation per ha in 1982-83 could be placed at aroundRs. 1,300 to Rs. 1,400 and incremental cost at around Rs. 600 to Rs. 700 per ha. On the basis of this cost ofcultivation data, average net incremental income would have reached in 1982/83 a level of around Rs. 900 to Rs.1,000 per hectare.
n.a. - not available.
Table 9
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
Estimates of Cash Costs of Cultivation at 1983/84 Prices (Sirsa District)(Rs. per ha)
PreprojectInput items 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84
Preparatory tillageoperations 400 400 400 400 400 400 400i 400 400
Seeds 36 54 57 51 50 56 53 56 58
Fertilizer & manures 146 228 260 358 380 390 434 410 400
Plant protection 230 409 415 460 402 402 517 517 575
Irrigation 250 250 250 250 2'0 250 250 250 250
Hired human labor 1,232 1,421 1,334 1,421 1,421 1,421 1,595 1,595 1,595
Marketing andtransport charges 135 210 195 225 217 225 240 255 151
Interest on workingcapital 170 208 204 222 218 220 244 244 240
TOTAL 2,599 3,180 3,115 3,387 3.338 3,364 3,733 3,727
Table 10
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
Estimates of Cash Costs of Cultivation at 1983/84 Prices (Faridkot District)(Rs. per ha)
PreprojectInput items 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84
Preparatory tillageoperations 700 700 700 700 700 700 700 700 700
Seeds 50 70 70 80 80 80 100 100 100LA
Fertilizer & manures 309 319 593 633 631 631 654 628 617
Plant protection 336 484 475 515 582 582 550 612 612
Irrigation 250 250 250 250 250 250 250 250 250
Hired human labor 975 1,050 1,050 1,275 1,275 1,200 1,200 1,275 1,275
Marketing andtransport charges 199 223 226 299 308 272 273 320 135
Interest on workingcapital 197 217 235 263 268 260 261 272 258
TOTAL 3,016 3,313 3,599 4,015 4.094 3,975 3,988 4,157 3,947
Table 11
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
Estimates of Cash Costs of Cultivation at 1983/84 Prices (Amravati District)(Rs. per ha)
PreprojectInput items 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84
Preparatory tillageoperations 335 - - - - - - 335
Seeds 36 - - - - - - 75 75 u.
Fertilizer & manures 45 - - - - - - 260 260
Plant protection 50 - - n.a. - - - 275 275
Hired human labor 180 - - - - - - 276 276
Marketing andtransport charges 48 - - - - - 97 78
Interest on workingcapital 49 - - - - - - 92 91
TOTAL 743 - - - - - - 1,410 1,390
n.a. = not available.
-60 - Table 12
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
Characteristics of New Improved Varieties/HybridsReleased During the Project Period
Yield GP MHL SpinningVarieties (q/ha) (mm) (HSC)
HirsutumSRT 1 (rainfed) 8 37 23.5 40PKV 081 (rainfed) 10 36 27.0 40H 777 (irrigated) 20 34 22.5 34F 414 (irrigated) 18 34 24.0 30LH 372 22 34 22.0 30
ArboreumAKA 5 7 40 22.5 20Eknath 10 39 21.5 20DS1 (irrigated) 25 40 20.5 10LD230 (irrigated) .- 27 38 18.0 10LD133 (irrigated) 22 38 16.6 10
HybridsSavitri (irrigated) 40 32 30.5 60Godavari (rainfed) 12 35 28.0 50PKV Hy.2 (rainfed/irrigated) 12(30) 34 24.5 40NHH 44 (rainfed) 15 34.6 25.0 40
Seed Breeder and Foundation Stages Produced(metric tons)
Center Breeder Foundation
HAU, Hissar 7.1 212.5PAU, Ludhiana 16.15 289.98PKV, Akola 114.03 717.91MAU, Parbhani 19.48 145.86MPKV, Rahuri 7.29+ 130.32
(4.84)parents
- 61 - Table 13
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
Some of the Proven Techniques for Increasing Cotton Production
Seed cotton Seed cottonNew yield in yield in
University technology new technology control(kg/ha) (kg/ha)
HAU 3rd week May sowing 2,091 1,79280 kg N/ha (in 2 splits) 2,122 1,79260x15 cm spacing 1,998 1,905Irrigation @ 7 day interval 2,466 1,547Solid planting 2,233 1,760Cotton-moth rotation 2,362 2,077Defoliant 1,952 1,622
PAU N40 1,850 1,63775xl5cm spacing 1,807 1,783Slow release N (Neem coated) 1,368 1,102Zinc application 1,567 1,307Legume rotation superiorFlat bed irrigation 1,651 1,617Cycocel 20% increase -No preparatory tillage 1,767 1,758
PKV 33,000 plants/ha 915 601Gradient sowing (0.2%) 992 856Crowbar method (for H4) 2,257 1,194Spot application of fertilizers 815 717
MAU Basalin more effective -SON 25P advantageous -T9 Blackgram intercrop -do- -
MPKV 15 April sowing90 x 90 cm for higher yield -120N kg/ha Savitri hge ilNeem coated urea in 3 splits 20% higher yield -Cotton paired row with urad 3,177 2,605Cotton groundnut in Pedegaon (Rs. 13,789) (Rs. 10,393)0.75 IW/CPE ratio(5 irrigations) 2,861 much lower
Note: New technologies yielded higher than the old practices (control).
- 62 - Table 14
INDIA
INTEGRATED COTTON DEVELOPMENT PROJECT (CREDIT 610-IN)
PROJECT COMPLETION REPORT
Effectiveness of Recommended Plant Protection Practices
Yield ofYield of
Method recommended method controlUniversity recommended (yield in kg/ha) (kg/ha)
HAU Fortnightly spray from midAugust to October (1 week) 3,257 2,962
Early morning spraying (5-7 a.m.)arboreum cotton (than hirsutum) less Jassid & -
less PBW
PAU Triozophos Superior to carbaryl
Synthetic pyrethroids 2,366 1,761(over carbaryl)
6th spray missed 2,172 1,859(out of 6)
PKV 5% injury level for bollworms E.T. -
Synthetic pyrethroids Cypermethrin best -
MAU Biological control in IPM Effective -
Synthetic pyrethroids Superior to -conventional
5% ET for bollworms Effective -
NPKV Control both SPs and BWs 2,350 1,293
Chemical control of BWs 2,440 1,226(All synthetic pyre-
throids superior)
2% level E.C. for BWs (Rs. 3,575) (Rs. 2,767)
GRAPH -A LiNEAR TREND EQUATION BASED ON YIELD RATES
212 FARIDKOT219
I 7 -IRSA
49 . COPT-YIL A
01
~Is
'a 1
13
Ci12
37 ~ (i-9 76 -7) (r-f -8) (Ira-793 (-8) -) (812-83)
0
I-j
o14~~~~~~~~U) ~ (967) (rr7)(87)(j98)(5-1 S182 8-3
-65- Annex 1
NM Jq //~ /ICOPFrom Oated -, 1
The Director of Kgriculture,Punjab,Chandigarh, INDIA.
to
Mr.Grahab Donaldson,Division Chief Agriculture,Infrastructure andHuman Resources Operation Evaluation Department,The World Bank, 1818 H.Street, N.W.Waehington, D.C.20433, U.S.A.
Subjects- .ndia Integrated Cotton Dovelopment Project(Credit 610-IN) Prosect Completion Repaort.
Please refor to your letter dated 14th Feb.,1989
addressed to Mr.A.S.PoonijFinancial Commissioner and Secretary
Agriculture,Government of Punjab,Chandigarh.
In Project India Integrated Cotton Development the
following objectives were successfully implemented.
a) Accelerated research to broed more juitable andhigher yielding cotb n varietios and developpedimproved cultural practices;
b) Improved cotton developnent facilities for thecotton growers.
Progress on these 2 objects had been continuing eve
after the cessation of these projects. Now Faridkot district ranksfirst in country in terms of fertilizer consumption and is one of thq
top districts in pesticides use. Faridkot district also ranks first interns of the cotton yields. This has been possible becuass to a limitedextent the state continue that project from its own resources to-dato.
The identification development of short durAtion-cottonvarieties during this project period has lead to the improvemnt in
cropping intensity not only in Faridkot diatrict but also in theadjoining districts. Some cotton varieties identified/dewelopped
during that period have been replaced now by still better varieties.
The farmers are continuously being guided about the need based
sprays and about using pesticides from dlfferent groups in;slternato
sprays. Credit facilities as a short term crop loan are contAnaLng.
All this shows that India Integrated Cotton Development
Project resulted in speedy development in cotton research,extension
and adoption. It is true that during early phases there weresome difficulties which could have been avolded
;-26
-66- Annex 1Page 2
it they were pro-conceived and discussed during pro-appraisal
and appraisal visits. Some times the implementation agency
thinks-that the appralsal team are adamant of their own lineof thinking and they give in easily to that line of thinking.
This results in covering up the difficulties likely to be faced
during implementation. It is suggested that the pre-appraiscl
teams and appraisal teams should be very open and should givean impression that they are not adamant about any particular
line of thinking. Each aspect should be discussed thoroughlyfrom all angles. Once this is-done and the components areidentified then IDA should insist that the components are putto work. For example if the Project Coordinator would havebeen appointed in addition to the present Joint Director of
Agriculture and extension staff would have been strengthen
then the results would have been still better.It is further suggested that more such projects
my be indentified for implementation in future.
ialkarn n IJ.0.A.(ICEP)
for Director of Agriculture,Punjab,Chandigarh.
-67 - Annex 2Page 1
.vVORLD B NN(FACMk-It i TRANKNI.I~~'W
k4..- TN l r
Dtr- Mty '>3,v N6
Attached re the corn-nents froni GOT eoncrn the Projec. Comnpletionm Report for
L~~~AUtlioiized by ;h e ....foSIg ature) cc Mr. Baxter
/Mi,$& -- ~ kWin~ -4ne)
,. .we .* ̂., !~~~~~~~~~~
I~~~~~~~:
Annex 2Paf. i PAGE 2W4
-68- -
.. .CoM S COMMPL*iON RIPoi fts . Li
IN FJCOTO UPM FRQMTil~t IA CRE0 0406.L-
Th arald 54 Ade4:1ntp'attd CettenDev.iepmeit Pojec as i eLas in avebet*
i976 $vex an &w& i.s& *Whao vt4 V *A Slegta4districts lt th* a Us 10fl airyuaa Pwun
.;;., *nd lth*t tbS* E X~toiu t ft pros5et
was .,4W iLLIe,. nd IAi Was is5 18 Mll1#r*.The project nded ii W1st pMireh.t984*
2g Q1JrQjY[iS The coin *bj ctivil,f;,tho Project wersg . | (s) uecha,^xt qas arc)l. tt..eed ere suitable
2;* s t shigh yielding ct n vai tie4e.i) provisien ef, pzoved sead and to inftnsive posts and disqa*ocontrol -srvices( Ui) mmaisatien knd extension,t ginning and Go an ssf processing facilities,(iv) provisiew of essenak.cre4Lt to grewero, and(v) tra ini the we:¢hldevXepment Workers and
3* 1 .1 Asia: as t *bjeativi "f Strengthening of rewsearch facilities * tencjern.da thi hat boenachloved to * can drobaeb extint. LaberaterLeshave betn constru d and suitably *quipped. The.r*sarch taoihits in-a2ll.th. five AgriculturalUnivorsities have *e*n t0 eidUly impevd {e:
intensifying SuLt sis.#I. 1ny mes.rche A largeveJii ib.:oedin .,ate:4ai4he 'been gene-ated and;s . the, dwe f bro des a numb*r of potentialhi.gh yielding va tis/s ybrids hav been ev*lvod.The low be't tech logy ''0b!en evolved and demn., :strated in the fi 2di ,T-RE4e of Integrated Pest
:. Minegenent (PM) a sls been adopted by the! fannm dee to th eentiuwus',fforts of the
*: . seazerch-and Dove pment OfficL s involved in the
;, .h1.2 The *rn c tO ogical and pathelogicllStudies hav sal ycen miedproven technolgy lik.dry se'.ngn -o i es hay 4
t.!,.',-'~. * 1%, ,
. ___ l ' ' '''.,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~A
Annex 27K USiQz7,7: Page 3
NO.1la PAGE 3 WOU;J
-69
* * ~etodlan% Intericrm n I p*5*coutinsj, u;o ;f >s* ynthetic pyVathr.idsp 4c. Witbhrngard t bre.der
-fhd foundatiln .0. pr4 ati#nmn p P M,. Ao1a achievodn: table success while * at a un-4^' VA
, ben oble to achiev h Lr '.00r;t:: Slontiste,Uvel.pment fl$cers a fam" hav* boon trained in
.. :j tton productien tchn :gy aid development eervico*s!cot"tn 'Dvelo ert.s4rvid*(CDS) organised by
all the thre0e ia;ss "- .. * latQe v@zy *atiafactqzy*::t ;HoWever, not4le a P e. lot so" key personnel,i lime* Cotton D.v e1iojen and Pkant ipetitien Officers
.dd, hamper the tev*1e rnt wok. Mon-4ntowro.set of. .. 4va2rius legislatlens a de C1 Itakk little difficult,. The
4.- . S .off igial demnstwr boy*lt do0abt that given good,'Ii quality seed, *ULe.i& plantipr"tec4ns, credit and
-*tatrenina ti Lpzs"Ved ewdu-'u4 n 0tizrha ,lty the c*tt*n.|i' d* C-L. % be aoprcl ly stopped up.'*1
I ,. 1-4 Cuone blo reqress has boOR achieved undow* ' the co0pnent of gin g and;tto,n;s*od Processing. Inf . Haryana, three high C *oity1 slwi-ls have beon set up
by HAfED at Ding, Rat aand Shattuk8iani The IA!ED* *. ha ,; lhalso so, up two deor" c~binatleqyz *Xpll#ewiOCuh-
s ' olvent extraction p Atit ati Oing *nd Ratio* in.hara:ht:,. *part f adding *elv#nt extvaction unit t
. et. Uhr already *xisti cotton eoed proceesing plant at.' Amrovatt, MOCXCOL ha set up one combination expeller
.;tcomselVent .ottacti plant at Patbbani and tw, cotton.seed expeller plants at Hi eli and Gangakched. Thooperational *ficl.n y of t*seo plnts ceds to bes 8toppedu p-**
1. Sn PjAb the gqinery owners did not Sh*w anlnto*est in Insuil g pze"lafenort in the absence of
, prce inoentivo for lean Ln prodiate The higher rateat Sntrest on 1A to4t It 4 pa"red to that being eh*
! - t sed by local financ I L9tuutorts in Punjab also r.st. as a handicap I moderin4titn of oxisting giMOrilsin Punjab"
! te 1 'to hisl 1 ; !:ers a( dtin improved cottn* duction technology psesi iit viwoam ^ CIA4 me for short-
JRLDE:w 1JS2024 .7E, t - 5JEO5.24. '9 066: N0. 18 PAGE 4
ffi ,L e e d o;: S ' l P 8 Page 4 WO.d
- 70 -
term *sasnal credit by the c- catlv and cercial banks.Under, this citmpven*tt In Hlgrya a t*tal amount of b*326.903It Was distributed by. the Leanks ln'In Pabitho totel disburse-Monts were f,72.781 hi whereasn Mer0iaitrta the dciburS*mentBwere b*38.323 U. The perfems co in f&xyan& and Punjab %VaS eon
1*7 The resoarCh werlers re fctively ii1elved in tz*inlathe Developrint Officers and workmeri . t cierititwo ingin the universities In thoe f. do efVlant borsding and plantP, et9Otitn hod %he *ppCltunit of savLng8shor,t, study
* tours,. SA Sudand urkyo 3g1itt Devel,pmentOfficers also visited USA ansd tht count:Se. to acquaintthomselves with the latest tc on preduetien technelogy. Theexpeu f these sciontlsts 4 develepu fft of fSCe will bevery uaeful in further cotton redue iin pregrames in thoceua try.~~~~~~~~~~~~~* voCy ...... ,"v.,tS
I is The area under c*tte Save r d4bth'preject increase6by 1982-83 to 0.139 M. heota In Ho eaniai-0,6029 M. hectare InP'unWbad 0.061 ll hectsre i Maher shtisWlas comnpared to*4th targets of 0.10OM&he taxes Qa23,MJ,hoctaxe and 0.050M. tictare respectivelys,
The Most positiVe S ii *f t i J.cJ t has been that t
hf-e bco awan of 0 Irv'd' cotten ProduCtiontechnology, particularly in 1 use *f..requLred quarntity ofqual,tyoseedt ferti3toer, wa rt angmieti*nV ad adeption ofphyt,S-enitation/plant prote itn.m asureo. AS a result, y3,e1crate 'of cottcn had Increase in *l;U.eoth e regiona aover*(by thte project. Yield p@r h ct*re qf icetten.hod incronct1d by*1982-;83 to 17#01 quit:..t:.s i 3Lsee-12S2 t0!quintals in Faridk.iand 6650 quintals in Am:avat di*U4ct 4var..,the corresponding""?n1.*crtii75b76) Yield 1 IoLs *t 900, 12.50 and 3.20 qut'*' 'pr he46t*u :tepeGttelv.jy ..
*0 -- 'OveroraU the pzejec he. 'bon, *sucaeos and has by ailastQ -served the purpose.ft which ittwas;designedY
si OTk . 1,1 I 'Maeor benefits unde the pJerct'acctUOd# throughincreased production and pi vctivi)tyef'.tten resulting tteihigh yielding seeds, improe plant p-otect,on, incre0ud cc
I ,* 4/ .
Annex 2} + _ ~~~~~~~~~~~~~Page 5
-71-
t- In$ 1tuti*T%al credit and inC- 4sed qinnlng and Cotten sleed
1*. -^ f;*W*J 4 inTh in in
j.rs4emb1c0zoai praduct4cfl ef 054 a te-nnes *f'"Kanas or 0409 gotonn iS U.int of higher quality nd 0.099 MAW t.nn. of cottons*od. , flh annuaL VtLat±o a ;SS p:oac,t to Ore$* lerntetic
, ; Pte<0t 1 t ct ' v utintry L* i*ll'a VA i at J.*5*t; 5u from co tLosiprodict4.sn' and b,34 Mf "? imp *vd soid";peoeang(ot full
cepacity utiliaat-tn) in toems. 1983-184prftces. The* *llsWl. *X-ut;..d.J.. a ^*A¢ AA i. 4 .**-;^tjs4 ^+* 4r|*
siS.ty itri! pr*A._-l__?r,t *rt 1 e4 teneas!4fv'ref±Led oil fr,
L11* i - -.- -.. * t. b'610974 nt
.* .~2 t,,.Ap,a from providing creased quqnty of work to the
0717 l. famziies engaged in co ton cultivation$ the project
provii"d additional oRplsymOt i caual,hind ;aou aquiva"ent
to prs'viding year xYulnd*w@I ft about on nlakh pert*ons.. Thist"t5 frei.&ctod Ln Increase in wag efr-cisuaV"hired al labour
from b.600 por day In pre-pr.jo t1197576).4por:id to Rs! 4*0'pOe -doy-ia th* poject period 982-83),t,;Thoenow ginneries and
Seed psOcesoing units &lIs crea ed sIzeable additionol skilled; zed~01 unskillvd labour,...........
' '1.1 :.-,The proJect could not ak4-ofiin-.the initial years duok S to certain factorsa such an, i ufficint ,ne for finalisingbankingplans, lInadectuate undXl tanding, on the part of the banke
of %t terms of refiron.c Run tt :olustance of commercial bank* to participate in th projoect c to .lited rural branct, notworl
. dolar ln execution of guRrart te by PunJab Government andt
Insisting' Gvwrnaent of Mahars, tra en.chax9ing of guarantee f*4
Aez&ial optaying of pesticide. no by 1 1Goevernents of Punjab and
Haryan, the cost of which tWas ot Zre the;;budgetary cources,lod to a redcetion In thO amou of inetitiuticinal credit d&marido4
by gzw.x, Mich level ef eve USs of 4fratatl District Contrni
I Coopekitive Bank on one hand a the 9 oinfortabl. resourceaposition of 1.ehnaxashtra State 4 cperatLvo Bank on the ether,
It ~ led ti lower disLuestoientt ao o1i as ireducaa refinance claims
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FROM UORLD8K US202477?. l 6 d e *-s24 2X I NO.18 PAGE 6WOaj
,, e V; :w---^-s..; st .! ,- 72 - Annex 2
1.2 The dis Doroants undei tho proj t mpiv*d aPtage 1697980largely: due to tie dynamic efforts of 1 yan Stite CooperativeBank. Intr.d tien *f cheque and pass ok system to cooperativesocieties subs quently helped Faridket strict ContralCoopOrative B k to achieve a .ode; p.Ix tin i hr £r6;The position f fMaharastra State c*ntin 'd to 0e p.pr duc tehigher 'basic *ovel for Amravatl as we as high level ofoverdus and *noocomp4iAnce of Resorve nk *of Xndlia."nam fe, *ope atitn of seasonal agilcUl ural cTedit'
1.3 Slow p ge's In Implemontatten f cotyr Seoed processingc.nplox was a tributable to various f*c ert, *t,ch -a ehortagO.of critical S. pauts like cement az.d bric *, delay *n powere- :-t* n . ,, ettsan r el a ne flitctumtiOns,delay in fine L.*eUon of tender decusn , detLy ln issueof IMPOrt )Lc4 ne.sl delay lA rolie*c of ;*rin oxohafnge
4a.. l, . ..l'squate- upply *f a peller eake for the.a;vrnt axtra ti. ,xlaz.t ^t ;:;v*;:ti 1k o'f skil.iLd labour.
transport and conveyance facilitiost.a8 disl.catien incotton manktt following closure of tex le mill. In Bombay.
194 Th* g rnails oct up in Haryana ad operatedbelow the in talled tapacity due to I gular powox supply,frequont pow. cuts and voltage f1uctu lend$ and dislecations In%he cotton Ma t)Ct.t With the Installat n aubsequenily of di.e'wtgenerators maJ*r canstraints have on removed. Th. rawmiat.eril equ ;iemerts of the new ginne *e could bo eawilymet tires the ncromeontal prodiseti,n of Atton in""the project
1.S With r gax4 to the pew good pro ussing'c0i"pi.xes set upIn Harmns ann Maharashtra the u t. *et. up'Ln 1981 ,s.-ye t ta :each Cpt&;Je c.Pa Uitr u:±';- 4.1.n li'vel a.d t unitset up during 1983-84 were udoegeing ilea a t. tho t S. t ofpre4eCt ceApi tien. There akre crt.in en*tra1ni*k .n rmach1nfull utilAet on levels. t montion . ew, xragw4sa powerSuppLY and 'Y matrtal availabtLity ow fuli utilSatlen ofthue. Unit& uWold be met by IfCke.enta av%#iiuil.b;ty of -. ttonseed fith p"aJect *r:.;
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OTd S9019 t r /3oa'o Annex 2.. - ... _ . ._ ,. Page 7
. . . 7 -. t * t1ld1.6 In para 4,3 at page 3 of th4 Reprt, it to sta¶tedthAt the tite Governments $hawed 1I ity in reoruiting sufficientstaff, rr Government is of th vSow ihat this net wholly
or.zeats ocauso tha at:Sf rw4.uLts xt 68.d &aScrd-Aing tocert%Jn soedures, rules and r@gul tioA vhiaoh taka sutfioient timeTherefore the obseroations regardi £ laxLty *n the part of theState Gov Xrrent are unwarrantid. 1 the tax* para it is mefntionedthst tne t&te Governments did noe orsUr. the preductitn anddUstrlut an *o required quantity * certified seeds and effectiveplant pro ectien against poast, Si a the:preduotion and diet.ributlion certified seedS Is to a larxe 4xtent a osmmercialVenture, t has to be In aocordane with t6lesae prep.cts/actiml sa. es. The pr.duot±in of ee tlfied seed was an per theSatual de ri4d of the farmers. L
1 .7 No new legislation w a enacted as a sequel toXCDP. H- evert efforts were, made a Wip6e the provisions ofthe eXiSt n8 legiSlationArlikeq ?h Est PIuzab.Agr1cultural Pesta,liB.ase a:d NeXious Weeds Aotf the *ctt4 Transport Act and
C'ttan Ca trnl ordAr aeierdn. to t e raduIIrent. Tn facts theHaryana Gov rne*nt liSued a special t It icaYion for. aompulsory
spraying nd field saniltation to c tro cafttn:inseats/pestsin 'theopr3Oct area, I
> .t 6. ; Taking into consider :n £evmentaQ dTUONS bibnief its er ved from tbis projec,tI I n elt necosaary
that cuab a pro3ot oult hhe,-,I b -* d b Ont f1 furthers However#Siailar f *S a project is the p Gent need to &c*leraterosoarch ni4' d4eelopment eftorts w oh will ;.-a leng way inbe±ting p the cotton production 4 precuotivz.'y.tn the
. . .. . ,ntry.' uzitry. a . f, :.
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