PROCEEDINGS of the 63Rd PLENARY MEETING

PROCEEDINGS

63rd Plenary Meeting of the International Cotton Advisory Committee

Mumbai, India November-December 2004 PROCEEDINGS OF THE 63rd PLENARY MEETING

“Enhancing Cotton Competitiveness”

ICAC Washington DC USA © International Cotton Advisory Committee, 2004

Price: US$50.00 FOREWORD

At the invitation of the Government of India, the 63rd Plenary Meeting of the International Cotton Ad vi so ry Com mit tee was held in Mumbai, from November 28 through December 3, 2004. The International Cotton Advisory Committee is an association of governments having an interest in the pro duc tion, export, import and consumption of cotton. It is an organization designed to promote cooperation in the solution of cotton problems, particularly those of international scope and signiﬁ cance. The functions of the International Cotton Advisory Committee, as deﬁ ned in the Rules and Regulations, are • To observe and keep in close touch with developments affecting the world cotton situation. • To collect and disseminate complete, authentic, and timely statistics on world cotton production, trade, consump tion, stocks and prices. • To suggest, as and when advisable, to the governments represented, any measures the Advisory Committee con sid ers suitable and practicable for the furtherance of international collaboration directed towards developing and main tain ing a sound world cotton economy. • To be the forum of international discussions on matters related to cotton prices.

MEMBER GOVERNMENTS

Argentina Germany South Africa Australia Greece Spain Belgium India Sudan Benin Iran Switzerland Brazil Israel Syria Burkina Faso Italy Tanzania Cameroon Korea, Rep. of Togo Chad Mali Turkey China (Taiwan) Netherlands, The Uganda Colombia Pakistan United Kingdom Côte d’Ivoire Paraguay United States of America Egypt Philippines Uzbekistan Finland Poland Zimbabwe France Russia

Ofﬁ ce of the Secretariat

1629 K Street NW Suite 702 Washington DC 20006 USA

Telephone: (202) 463-6660 Fax: (202) 463-6950 E-mail: [email protected] Internet: http://www.icac.org/ CONTENTS

STATEMENT OF THE 63rd PLENARY MEETING, ENGLISH 7 STATEMENT OF THE 63rd PLENARY MEETING, RUSSIAN 11 STATEMENT OF THE 63rd PLENARY MEETING, ARABIC 15

MINUTES Inauguration 19 Attachments Report of the Chairman of the Standing Committee 20 Report of the Executive Director 21

Plenary Sessions First Plenary Session 24 Statements by the International Organizations, Member Countries and non-Member Countries Second Plenary Session 27 Government Measures

Open Sessions First Open Session 28 Economic Outlook and Cotton Prices Second Open Session 30 The Role of Importance of National Cotton Sector Associations Third Open Session 31 Trading Cotton on an Instrument Based Classing System Fourth Open Session 33 Strenghthening the Input Supply Chain to Small Holders Fifth Open Session 35 Facilitating Adoption of Best Agronomic Practices by Small Holders Sixth Open Session 37 How to Make Cotton Price Risk Management Effective Globally

Seventh and Eighth Open Sessions 44 Report of the Chair of the Committee on Cotton Production Research

Ninth Open Session 39 Improvement of Cotton Trading Practices

Tenth Open Session 40 Strategies for Cotton Demand Enhancement

Closing Session 42

Steering Committee First Meeting 43

Attachments Working Paper I: Election of Standing Committee Ofﬁ cers 44 Working Paper II: Proposals to Encourage Timely Payment of Assessments 44 Report of the Chair of the Committee on Cotton Production Research 44 LIST OF DOCUMENTS AND WORKING PAPERS 46 REPRESENTATION LIST 46 Statements of the Meeting, which are an integral part of the full record of the meeting, are published separately. PROCEEDINGS OF THE 63RD PLENARY MEETING 7

STATEMENT OF THE 63rd PLENARY MEETING “Enhancing Cotton Competitiveness”

The International Cotton Advisory Committee met in Mumbai, India during November 29-December 3, 2004 for its 63rd Plenary Meeting since 1939. Representatives from 48 governments and 9 international organizations participated in the meeting. 1. The Secretariat estimates that world cotton production is at a record of over 24 million tons in 2004/05. Good weather and increased planted area explain much of the rise in production. However, advances in technology, including better tools of pest management, are helping to reduce input use, lower production costs and expand cotton production. The development of new technologies is causing cotton supply to expand faster than demand. Production and export subsidies in cotton distort fair trading practices and dampen international prices. Consequently, the Secretariat estimates that average cotton prices are likely to be approximately 20 cents per pound lower during the next fi ve seasons than the average of the last thirty years. Lower real cotton prices will affect producers’ incomes and export revenues, especially in countries that are slower to adopt new technologies, and will result in additional pressures to lower production costs. 2. World cotton consumption in 2004/05 is being stimulated by lower prices, stronger world economic growth and ongoing efforts to promote consumption. World cotton mill use is forecast to grow by 5% in 2004/05 to more than 22 million tons for the fi rst time. World trade in cotton rose 24% between 2000/01 and 2003/04 and reached a record of 7.3 million tons. According to the Secretariat, world cotton use and trade will benefi t from the full elimination of quotas on textile and apparel trade among World Trade Organization (WTO) members on January 1, 2005, and continue to benefi t from consumer promotion programs. 3. The Committee strongly supports the trade and development aspects of the Initiative on Cotton under the auspices of the WTO, and expects they will contribute to a successful outcome to the talks on agriculture in all three pillars of reform. The overwhelming majority of member governments reaffi rmed that production and export subsidies distort cotton production and trade causing negative impacts on cotton farmers, especially in the developing and least developed countries. The Committee urged that these subsidies be removed. The Committee directed the Secretariat to communicate these views to the WTO. The Committee urged governments to look for ways to reduce tariff and non-tariff barriers on raw cotton, cotton textiles and apparel in order to expand real market access, and therefore increase trade in cotton products. The Committee directed the Secretariat to reactivate the Working Group on Government Measures. The Working Group on Government Measures will make recommendations to the ICAC conducive to the elimination of cotton export subsidies and all other subsidies and government measures that distort cotton production and trade. The Committee determined that the ICAC should seek Observer Status with the Subcommittee on Cotton of the WTO. The Working Group is directed to report on an ongoing basis to the Standing Committee and to the 64th Plenary Meeting. 4. The Committee received a report from its Expert Panel on Commercial Standardization of Instrument Testing of Cotton (CSITC). In previous meetings, the Committee had been informed that instrument-based evaluation systems are superior to traditional hand-classing methods of grading cotton. The Expert Panel recommended seven actions to encourage worldwide testing of cotton with standardized instrument testing methods and procedures. The actions include defi nition of specifi cations for cotton trading, defi nition of international test rules, implementation of test rules, certifi cation of testing laboratories, defi nition and provision of calibration standards, specifi cation of commercial control limits for laboratories, trading and establishment of arbitration procedures. The report from the Expert Panel includes specifi c actions and identifi es responsible parties for the achievement of each recommendation. The Committee endorsed the report of the Expert Panel and instructed the Secretariat to encourage the responsible parties to implement the recommendations gradually. The Committee expressed its appreciation to members of the Expert Panel on CSITC for their service to the cotton industry and authorized continued operation of the Expert Panel on CSITC. 5. The Committee received a report from its Second Expert Panel on Biotechnology of Cotton. The Committee was informed that biotech cotton varieties are planted on an estimated 24% of world cotton area, accounting for 35% of world production and 31% of world exports. The Expert Panel cited fourteen key fi ndings. The Committee also noted that a growing number of countries have been successfully introducing biotech cotton, and in these countries experience is showing that some of the fears associated with these crops may have been unjustifi ed. In addition, the Expert Panel provided some recommendations for the adoption of biotechnology for developing countries. The Expert Panel recommended that novel gene characteristics be introduced through local varieties as a component of an integrated pest management system, and that biotech not be seen as a replacement or alternative to sound pest management practices. The Expert Panel noted that the existence of a centralized regulatory process to evaluate and control biotech varieties, the capacity to educate farmers in the use of biotechnology, and 8 NOVEMBER-DECEMBER 2004 legislation to protect germplasm and technology are pre-requisites for the successful evaluation and adoption of biotech cotton. The Committee expressed its appreciation to members of the Expert Panel for their efforts and authorized continued operation of the Expert Panel on Biotechnology of Cotton to study and report on changes in technology as necessary and to supplement information in the Second Expert Panel Report and other ICAC documents. 6. Private sector associations that represent all segments of a national industry and all regions of a country can enable cotton industry participants to unite in the achievement of common goals and to advocate with one voice for balanced, growth-oriented policies and programs. The Committee was informed that the cotton industries of many countries are fragmented. The Commit- tee was told of successful examples of the formation of national cotton industry associations, and of the benefi ts to countries of the formation of national associations able to speak with one voice for the sector. The Committee encouraged the formation of national cotton sector associations and recommended collaboration between associations through membership in the Committee for International Co-operation between Cotton Associations (CICCA). 7. Cotton is grown on an estimated 100 million farms in more than 80 countries. The average area planted to cotton by growers is 0.4 hectares, and in some countries, average size is just 0.2 hectares. The Committee was informed that in many countries, the primary constraints to increased cotton production among smallholder cotton producers are a lack of inputs and a lack of access to affordable credit which prevents the purchase of inputs in a timely manner. It was noted that in some countries, there are adequate inputs and investments in research, but agricultural practices used by smallholder cotton producers often remain outdated owing to lack of knowledge. It was further noted that smallholders often are not able to benefi t from tools of price risk management to provide protection against fl uctuations in market prices. The Committee heard of successful programs in many countries to ensure that smallholder cotton producers have access to quality inputs on a timely basis, coupled with agronomic information to ensure the implementation of best practices. The Committee also heard of efforts to make price risk management effective globally. A number of different systems to support smallholders were identifi ed. 8. The Committee on Cotton Production Research organized a technical seminar on the topic, “How to Improve Yields and Reduce Pesticide Use.” Speakers from four countries offered examples of successful strategies to minimize the use of pesticides without sacrifi cing yields. Year-round implementation of integrated pest management programs is the key to economical control of pests, and farmers must understand pest life cycle behavior in order to control them effi ciently. Crop nutrition must meet basic metabolic plant needs without providing luxury nutrient supplies that result in excessive plant growth and larger pest populations. The Committee received technical advice on optimal use and application of fertilizer and pesticide, and advice on the use of scouting systems correlated with weather reports to determine optimal timing of pesticide applications. The boll weevil is a major pest in many countries. Experts recommended blending biotech cotton with other components of integrated pest management systems if biotech cotton varieties are used. The Committee decided to hold the 2005 Technical Seminar on the topic ‘’Rapid Instrument Testing: Opportunities for Breeders and other Segments of the Industry and the Need for Uniform Defi nitions.” 9. Defaults on contracts for international trade in cotton are a signifi cant problem imposing costs on the entire cotton chain. Factors contributing to this situation include a lack of familiarity with international trading rules and arbitration procedures and restrictive currency regulations that inhibit price risk management activities. Member governments were informed of efforts by the private sector to ensure broad awareness of contract terms and arbitration procedures and the introduction of measures to discipline fi rms not in compliance with agreed international trading rules. Governments recognized that a proliferation of trading rules governed by separate national organizations increases the costs and risks of international trade in cotton, and the Commit- tee supported the concept of standardized international trading rules. Variations in international trading rules based on specifi c considerations should be freely agreed between the contracting parties without intervention. Governments were urged to lift regulations that prohibit orderly use of cotton futures and options so that price risk management tools are available to all market participants. Governments were urged to ensure that valid international arbitral awards are enforceable in each country. 10. Boosting consumption of cotton is a strategic challenge facing the cotton industry. The Committee heard that per capita consumption of cotton is rising in countries with national programs that provide positive information about cotton to domestic consumers. According to the Secretariat, efforts to improve cotton’s competitiveness through research and promotion have boosted world cotton use by approximately 300,000 tons per year over the last fi ve years. The Committee received a report on the activities of the International Forum for Cotton Promotion and agreed that the work of the IFCP is important and should continue. The Committee encouraged national cotton organizations to join the IFCP and to develop programs of demand enhancement in their countries. 11. The Committee received a report from its Private Sector Advisory Panel. The PSAP supported a streamlined format for plenary meetings to ensure that matters of interest are discussed. The PSAP expressed appreciation for the work of the Secretariat PROCEEDINGS OF THE 63RD PLENARY MEETING 9 and the current schedule of Secretariat publications. The PSAP agreed that the forum for negotiation of reductions in government measures that distort production and trade is the WTO. The PSAP agrees that cotton should continue to be included in the agricultural negotiation framework of the WTO. The PSAP recommended that the ICAC continue to work to raise the profi le of cotton in multilateral forums, to include WTO matters in the agenda of each plenary meeting and to continue to publish annual reports on government measures affecting cotton production and trade. The PSAP encourages continued support of the International Forum for Cotton Promotion by the ICAC. The PSAP supports continued work on the topics of biotechnology and instrument testing of cotton. The PSAP observed that the support of governments in providing for the rule of law and ensuring that international arbitral awards are easily enforced in each country is a crucial component in efforts to improve the effi ciency of cotton trade. 12. The PSAP expressed concern that the largest cotton producing and consuming country in the world is not a member of the ICAC. Efforts to encourage greater transparency in government policies and market statistics by all governments would improve the functioning of the world cotton industry. The executive director was urged to explore new approaches to the involvement of non-member countries in the ICAC, such as including representatives from the private sector in the PSAP and perhaps involving non-member countries in the agenda of plenary meetings. 13. The Committee welcomes the announcement made by the European Union and its member states that the European Com- mission is considering applying to become a member of the ICAC. 14. The ICAC expressed its appreciation to the Common Fund for Commodities for supporting commodity development and acknowledged the benefi ts to the cotton industry of projects fi nanced by the CFC. Since the Fund became fully operational in 1991, a total of fi fteen cotton projects have been approved involving over $21 million in grants and loans from the CFC. 15. The Committee thanked the Government and cotton industry of India for their hospitality and generosity in serving as host of the 63rd Plenary Meeting. It was noted that attendance at the 63rd Plenary Meeting was record high, and the efforts of the Secretariat and Organizing Committee in preparing for the meeting were much appreciated. The Committee accepted with great anticipation invitations from the Government of the UK to host the 64th Plenary Meeting in Liverpool during September 25-29, 2005 and the Government of Brazil to host the 65th Plenary Meeting in Goiania during September 11-15, 2006.

MEMBER GOVERNMENTS Argentina, Australia, Belgium, Benin, Brazil, Burkina Faso, Cameroon, Chad, China (Taiwan), Colombia, Côte d’Ivoire, Egypt, Finland, France, Germany, Greece, India, Iran, Israel, Italy, Republic of Korea, Mali, Netherlands, Pakistan, Paraguay, Philip- pines, Poland, Russia, South Africa, Spain, Sudan, Switzerland, Syria, Tanzania, Togo, Turkey, Uganda, United Kingdom, United States of America, Uzbekistan, Zimbabwe. 10 NOVEMBER-DECEMBER 2004

ANNEX I SUPPLY AND DISTRIBUTION OF COTTON December 3, 2004 Years Beginning August 1 2000 2001 2002 2003 2004 2005 Est. Proj. Proj. Million Metric Tons BEGINNING STOCKS WORLD TOTAL 10.103 9.691 10.506 8.464 7.76 9.91 CHINA (MAINLAND) 3.812 2.984 2.631 1.566 1.28 1.38 USA 0.852 1.307 1.622 1.172 0.76 1.93 NET EXPORTERS 3.117 3.616 4.208 3.600 3.27 5.08 NET IMPORTERS 1/ 6.986 6.076 6.298 4.864 4.49 4.83 PRODUCTION WORLD TOTAL 19.438 21.473 19.294 20.649 24.65 22.31 CHINA (MAINLAND) 4.417 5.324 4.916 4.871 6.30 6.03 USA 3.742 4.420 3.747 3.975 4.91 3.86 INDIA 2.380 2.686 2.312 3.009 3.32 2.93 PAKISTAN 1.816 1.783 1.736 1.734 2.18 1.84 BRAZIL 0.939 0.766 0.848 1.273 1.28 1.37 UZBEKISTAN 0.975 1.055 1.022 0.893 1.06 0.99 OTHERS 5.170 5.438 4.714 4.894 5.62 5.29 CONSUMPTION WORLD TOTAL 19.837 20.288 21.184 21.326 22.50 22.98 CHINA (MAINLAND) 5.200 5.700 6.500 7.050 7.90 8.30 INDIA 2.924 2.910 2.914 2.950 3.10 3.19 EU, C. EUR. & TURKEY 2.361 2.430 2.399 2.223 2.21 2.19 PAKISTAN 1.764 1.855 2.042 2.100 2.20 2.27 EAST ASIA & AUSTRALIA 2.075 2.127 2.075 1.889 1.85 1.83 USA 1.929 1.676 1.583 1.413 1.39 1.32 BRAZIL 0.873 0.830 0.760 0.810 0.87 0.90 CIS 0.657 0.671 0.674 0.685 0.71 0.73 OTHERS 2.054 2.090 2.237 2.206 2.27 2.25 EXPORTS WORLD TOTAL 5.880 6.448 6.659 7.275 6.69 7.61 USA 1.472 2.395 2.591 2.996 2.36 2.85 CFA ZONE 0.755 0.756 0.815 1.069 0.81 1.10 UZBEKISTAN 0.800 0.810 0.798 0.644 0.73 0.70 AUSTRALIA 0.849 0.662 0.575 0.470 0.37 0.55 GREECE 0.270 0.250 0.280 0.250 0.25 0.24 BRAZIL 0.068 0.147 0.107 0.210 0.45 0.50 CHINA (MAINLAND) 0.097 0.074 0.164 0.038 0.05 0.05 IMPORTS WORLD TOTAL 5.737 6.227 6.539 7.278 6.69 7.61 EAST ASIA & AUSTRALIA 1.995 2.143 2.029 1.732 1.80 1.78 EU, C. EUR. & TURKEY 1.449 1.597 1.396 1.236 1.18 1.25 CIS 0.412 0.328 0.348 0.313 0.33 0.32 SOUTH AMERICA 0.300 0.213 0.325 0.303 0.22 0.21 CHINA (MAINLAND) 0.052 0.098 0.682 1.929 1.75 2.25 TRADE IMBALANCE 2/ -0.144 -0.221 -0.120 0.003 0.00 0.00 STOCKS ADJUSTMENT 3/ 0.130 -0.148 -0.031 -0.026 0.00 0.00 ENDING STOCKS WORLD TOTAL 9.691 10.506 8.464 7.764 9.91 9.25 CHINA (MAINLAND) 2.984 2.631 1.566 1.278 1.38 1.31 USA 1.307 1.622 1.172 0.763 1.93 1.63 NET EXPORTERS 3.616 4.208 3.600 3.271 5.08 4.57 NET IMPORTERS 1/ 6.076 6.298 4.864 4.494 4.83 4.68 ENDING STOCKS/USE 4/ 0.46 0.54 0.51 0.59 0.70 0.69 COTLOOK A INDEX 5/ 57.20 41.80 55.40 68.30 49* 60* 1/ Includes Argentina, China (Mainland), Colombia, India, Mexico, Pakistan, Turkey and traditional importers. 2/ The inclusion of linters and waste, changes in weight during transit, differences in reporting periods and measurement error account for differences between world imports and exports. 3/ Difference between calculated stocks and actual; amounts for forward seasons are anticipated. 4/ World-less-China (Mainland) ending stocks minus China net exports, quantity divided by world-less-China consumption. 5/ U.S. Cents per pound. The projections for 2004/05 and 2005/06 are based on net China (Mainland) trade and world-less-China (Mainland) ending stocks-to-use ratio. */ 95% confidence interval extends 12 cents above and below the point estimate. PROCEEDINGS OF THE 63RD PLENARY MEETING 11

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Inauguration

9:00 AM, Monday November 29, 2004 for the health of the cotton economy in the long greater emphasis on infrastructure development Mr. Wajahat Habibullah in the Chair run. He said that there is an urgent need to through private-public partnerships. The CHAIR abolish production and export subsidies given The SECRETARY GENERAL called the thanked Mr. Ahluwalia for his remarks. in developed countries. He called for an end to meeting to order and introduced Mr. Wajahat The CHAIR introduced Mr. Luc Devolder, unnecessary barriers to trade in cotton and cotton Habibullah, Secretary (Textiles) as CHAIR of Minister Plenipotentiary Western European textiles. The CHAIR thanked the Chief Minister the Plenary Meeting. Countries and North America, Federal Public for his remarks. Mr. Deshmukh’s remarks are a Service for Foreign Affairs, Government of The CHAIR said it was an honor for India to host statement of the meeting. the 63rd Plenary Meeting and that India was grati- Belgium. Mr. Devolder serves as Chair of the The CHAIR introduced the Chief Guest, Mr. fi ed by the record response to their invitation. Standing Committee. Mr. Devolder expressed Shankenh Vaghela, Honorable Minister of He said that liberalization and globalization are his thanks and congratulations to the Govern- Textiles, Government of India. Minister Va- bringing structural change to the world economy, ment of India for the excellent planning of the ghela welcomed all delegates and observers. and international competition will become even meeting. He observed that the ICAC is well He stated that the theme of the 63rd Plenary fi ercer after January 2005. Therefore, the theme managed and that national contributions to the Meeting was most appropriate. He said that the of the 63rd Plenary Meeting is most appropriate. Committee’s budget are used effi ciently. He world cotton industry faces many challenges, He noted that Indian production will be record said that the budget process of the Committee including a downward shift in prices, declin- high in 2004/05 and that cotton plays a vital role is smooth and transparent. He observed that over ing per capita consumption, environmental in the Indian economy. Nevertheless, there is a that last few years the Standing Committee has concerns, resource constraints and distortions need to improve quality and lower the costs of changed from a purely administrative body to a to production and trade caused by government production in order to be competitive in interna- forum for discussion among governments and measures. He said that cotton had been part of tional trade. He urged increased research into the the private sector. Mr. Devolder commented on the history of India since before independence, use of cotton by-products. Mr. Habibullah said the volume and quality of Secretariat reports and that cotton continues to be a major contribu- that biotech cotton varieties are a useful tool of on cotton supply, use and prices and technical tor to the economy. However, he observed that pest management. He denounced government information. He said that Secretariat efforts to there is room for improvement in the industry, measures that distort cotton production and promote the interests of cotton deserved support. including expanding irrigation and develop- trade. Mr. Habibullah’s remarks are a statement He thanked members of the Private Sector Advi- ing new seed varieties. He predicted that area of the meeting. sory Panel for their role in facilitating increased devoted to biotech cotton would increase. The interaction between the ICAC and the Standing The CHAIR introduced the Guest of Honor, Mr. Minster denounced subsidies paid to producers Committee. On a less positive note, he observed Vilasrao Deshmukh, Honorable Chief Minister in developed countries. He called for an end that membership in the ICAC declined during the of Maharashtra, Government of Maharashtra to subsidies that distort production and trade, past year, and he urged all countries to support State. Chief Minister Deshmukh said that he and he called for an end to tariff and non-tariff the work of the ICAC. He thanked countries for was pleased to attend the 63rd Plenary Meet- barriers to trade. He asked that all countries the opportunity to serve as Chair ad interim of ing of the ICAC, and he welcomed delegates, cooperate on research and development. The the Standing Committee and endorsed the nomi- observers and guests to India. He noted that the CHAIR thanked the Honorable Minister for his nations of M. Ibragimov as Chair, Mr. Mkhize ICAC promotes cooperation in cotton affairs and remarks. Mr. Vaghela’s remarks are a statement as First Vice Chair and Ms. Cores as Second provides members a continuous understanding of the meeting. Vice Chair. The Report of the Chairman of the of the world cotton situation. He said that the The CHAIR introduced Mr. Montek Singh Standing Committee is attached. cotton industry is plagued by a downward shift Ahluwalia, Deputy Chairman, Planning Com- in prices, declining per capita consumption, en- The CHAIR thanked Mr. Devolder for his report mission, Government of India. Mr. Ahluwalia vironmental concerns, resource constraints and as Chairman of the Standing Committee, and said he felt privileged to be invited to speak to distortions to production and trade due to gov- he introduced the Secretary General to give the the Plenary Meeting. He reported that Indian ernment measures. He said that cotton and cotton Report of the Executive Director. Mr. Townsend economic growth averaged 6% per year recently textiles play a key role in economic growth in said that the mission of the ICAC is to assist and that a transition to 8% growth was feasible. both developed and developing countries. Mr. governments in supporting a healthy world He said that a steady process of liberalization and Deshmukh noted that cotton yields in India are cotton economy. The Committee achieves this economic reform was leading to a sea change below the world average, primarily because of a mission by raising awareness of cotton issues, in the economic structure of India. He said that lack of irrigation. Nevertheless, India is a major by providing information necessary for deci- one result of reforms was expanded economic exporter of cotton yarn and fabric and plays a sion-making and by facilitating cooperation growth in the private sector. He observed that the signifi cant role in the world cotton economy. He among industry segments and governments on MFA resulted in egregious distortions to world reported that the Government of India is taking matters of shared international concern. He said trade in textiles and apparel, and he called for steps to improve the competitiveness of the that four major issues are challenging the cot- a complimentary liberalization of trade in agri- Indian cotton industry. He reported on progress ton industry today, including the development of cultural products under the WTO talks. He hat made by the Technology Mission on Cotton. He new technologies that are changing the structure India is encouraging increased foreign direct reported on the Technology Upgradation Fund to of production, competition with chemical fi bers, investment, and he noted that India needs more encourage modernization in the textile industry. government measures that distort production and investment in health and education to achieve He reported that the Government of India now trade and the continued problems caused by con- higher economic growth. He said that improve- permits commercial cultivation of biotech cot- tract defaults. He described ways in which the ments in agricultural productivity through the ton. The government is working to encourage Committee is contributing to government and Technology Mission on Cotton, increased contract farming so as to facilitate technology industry efforts to meet each of these challenges. irrigation, expanded access to technology, transfer and input availability to small holders. He noted that the Secretariat aids in technol- strengthening the value chain through contract The Government allows futures trading of cot- ogy transfer by serving as a clearinghouse for farming would contribute to faster national eco- ton. He noted that per capita cotton consumption technical information. The ICAC contributes to nomic growth. He said that India needs to place a is declining and that there were apprehensions demand enhancement through support for the 20 NOVEMBER-DECEMBER 2004

International Forum for Cotton Promotion, and for providing guidance, support and assistance tive director, prepares and executes the budget that the ICAC is facilitating increased use of to the members of the Standing Committee. in total transparency. These qualities, together instrument testing systems to improve cotton Without them, the Committee would not have with the rigorous fi scal responsibility adopted by quality. He said that the ICAC helps to raise the been able to perform its duties. I can assure all the Secretariat, result in a very smooth process, profi le of cotton within the WTO and serves as Governments here represented that, with Terry which is not always the case in intergovernmen- the source for information about government and his colleagues, the ICAC is in very good tal organizations. measures in cotton. He noted that the ICAC hands and that the national contributions to the In exchange for their fi nancial contributions, endorses contract sanctity and encourages all Committee’s budget are used in the most produc- governments expect service and one of the countries to ensure that valid arbitral awards tive and effi cient way. main services ICAC provides is information. are enforceable. The Report of the Executive For me personally, the past four years as delegate The Secretariat has made remarkable progress Director is attached. of Belgium to the Standing Committee and as in this area. In the meetings of the Standing Com- The CHAIR thanked the Secretary General and its Chairman ad interim during the last fi fteen mittee we receive regular reports on the situa- introduced the delegate of EGYPT, host of the months have been a most interesting and gratify- tion of the cotton industry, including forecasts 61st Plenary Meeting in 2002, to give welcoming ing experience. I did learn a lot about an industry on yields, consumption, trade and prices, as well remarks on behalf of all delegates. The delegate that for many countries and regions, especially in as special reports on specifi c topics such as the thanked the Government of India and the Orga- the developing world, is an important, if not the developments in the use of biotechnology. But nizing Committee for the warm welcome and ex- most important provider of resources and jobs. this is only the tip of the iceberg. The quantity cellent preparations. He noted that all delegates One of the main tasks of ICAC therefore is, in and quality of the information collected, pro- had been met at the airport and made to feel fully my opinion, to promote the cultivation, research, cessed and published by the Secretariat is most welcome upon arrival in India. He observed that marketing and use of cotton. The Standing Com- impressive. Thanks to the increased use of new preparations and arrangements for the meeting mittee has endeavored to make its contribution technologies, this information is increasingly were excellent, and that the record attendance to the realization of this task. available in an easily accessible, user friendly was a refl ection of the appreciation shown by all and timely manner. The Secretariat has to be Over the last few years, the Standing Committee countries. The delegate also thanked the Secre- recommended for this service but the best way to has changed from a purely administrative and tariat for their efforts to prepare documents and show appreciation is that government adminis- supervising body to a kind of forum where gov- complete registration for delegates. He said that trations, the private sector, and the public at large ernment representatives and, at regular intervals, the agenda and arrangements for the meeting use this information, provide the data necessary representatives of the private sector meet to be showed excellent planning and preparation. He to prepare the publications and let the Secretariat informed about and to discuss matters of inter- said that the 63rd Plenary Meeting was off to an know how it could be even more responsive to est to the cotton industry. It is in this framework excellent start and he was sure that the meeting existing needs. that special attention has been given to subjects would be a success. The remarks of the delegate such as the role of government measures, means I would like to take this opportunity to draw par- of Egypt are a statement of the meeting. and ways to improve the quality of cotton pro- ticular attention to some of the other activities of The CHAIR thanked the delegate of EGYPT duction, and the increasing use of genetically ICAC. First is the role of advocacy on behalf of and all delegations for the words of thanks and engineered seeds. the cotton industry. Numerous are the demarches appreciation. The meeting was adjourned at 10: undertaken to promote the interests of the cotton At the invitation of the Secretariat, experts in 30 am. industry towards individual countries, other in- these and other fi elds came to the Standing Com- dustrial and commercial sectors as well as inter- mittee meetings to inform the delegates and to ATTACHMENTS national organizations. The Secretariat deserves engage them in often lively exchanges of infor- fi rm support for these efforts. Second is the role mation and opinions. I recall more specifi cally of ICAC in the training of experts. The participa- Report of the Chairman of a most interesting debate about the outcome tion of members of the Secretariat in meetings and possibly broader consequences of the case the Standing Committee and seminars worldwide and the organization of brought before the WTO in the framework of its training sessions in Washington should be fur- dispute settlement competency. Luc Devolder ther encouraged and, if possible, receive more Belgium The panel decision in this case, the future of funding than is the case now. Third, but the not textile trade after the expiration of the Multi the least important, is the enhanced interaction Fibre Agreement and the ongoing negotiations of ICAC and the Standing Committee with the On behalf of the members of the Standing Com- on agriculture in the Doha Development Agenda, private sector. The members of the Private Sec- mittee, I would like to express sincere thanks and will have serious repercussions for all cotton tor Advisory Panel deserve special thanks for congratulations to the Government of India, in producing, trading and consuming nations. I am the efforts they put in an effective, constructive particular the Ministry of Textiles, and to the confi dent that ICAC and the Standing Commit- and very much appreciated dialogue. Organizing Committee for the excellent planning tee will continue to follow these developments Before concluding and perhaps on a less positive of this meeting. No effort has been spared to very closely. ensure its success. We have all been touched by note, I would like to make a remark concerning the warm welcome we received here in Mumbai. Of course, the attention given to these more membership. Over the last years, several coun- Let me add that it is most fi tting that a Plenary general topics did not mean that the Standing tries have withdrawn from ICAC and only one Session with the theme of ‘Enhancing Cotton Committee neglected its more traditional duties. new member has joined the organization. This Competitiveness’ takes place in a country that As the body mandated by the member states to evolution takes place at the same time as ICAC plays such an important role in all branches of exercise fi nancial oversight of the Advisory demonstrates new strengths in its performance the cotton industry: production as well as trade Committee, one of its principal tasks is to ex- as advocate for the cotton industry, provider of and consumption. amine and to approve the annual budget. Hav- information and facilitator of cooperation with ing been closely involved in the activities of the the private sector, governments and interna- At the outset, I wish also to thank the Execu- Subcommittee on the Budget, which prepares the tional organizations. I want to urge all member tive Director of the ICAC, Mr. Terry Townsend, decisions of the Standing Committee, I can attest countries to continue to support ICAC and to and all members of his staff for the hard work to the thorough professionalism with which the this, among other things, by paying their con- they put in the preparation for this plenary and Secretariat, under the leadership of the execu- tributions well in time and by encouraging their PROCEEDINGS OF THE 63RD PLENARY MEETING 21 embassies in Washington to actively participate ton since the 1960s when technical seminars regularly updates material on biotechnology in the meetings of the Standing Committee. On were added to the agendas of plenary meetings. in reports to the Standing Committee and with top of that, all members could play an impor- The work of the Secretariat in areas related to articles in the Recorder. All of these reports are tant role in convincing other nations to join the technology has increased in prominence during available on the web. organization in order to further strengthen it as the last fi fteen years, and through the work of Based on a recommendation from the Private the principal and most representative promoter the Technical Information Section, the Secre- Sector Advisory Panel, delegates to the 62nd of the cotton industry worldwide. tariat has become a world leader in highlighting Plenary Meeting instructed the Secretariat to emerging issues related to technology in cotton. Before concluding, I would like to thank all the form a Second Expert Panel on Biotechnology The Secretariat is the acknowledged clearing- delegates and observers for their participation in in Cotton. The purpose of the Expert Panel is house for information on cotton technology this Plenary Session. I am sure the presentations, to provide a comprehensive fact-based report among an informal network of more than 240 discussions and other events will be of consid- about the benefi ts and costs and implications of cotton research centers around the world. The erable value thus making the trip to Mumbai latest developments in biotechnology in cotton Secretariat publishes quarterly technical reports worthwhile. since the Committee received a report from its on cotton research, and reports on the cost of First Expert Panel on Biotechnology in Cotton in At the end of this Plenary Session, my mandate production, production practices and current 2000. Eight leading cotton scientists from around as Chairman ad interim of the Standing Commit- research in cotton. The Secretariat also sup- the world representing divergent views on bio- tee will also come to an end. I thank those who ports and helps to organize regional technical technology were identifi ed by the Secretariat and elected me at the 62nd Plenary Session for their network meetings and a World Cotton Research approved by the Standing Committee. Dr. Gary confi dence. It was an honor for me and for my Conference every four years that enhance the Fitt from Australia chaired the Second Expert country to serve. My thanks also to my fellow development of technology through increased Panel. Members of the Expert Panel circulated members of the Committee, to the delegates who communication among researchers. draft copies of chapters for the report prior to took upon them the burden of chairing the sub- New technologies are fundamentally changing their meeting in July in Washington. After two committee meetings, and to the Secretariat. world cotton production, leading to increased days of discussions in Washington, Expert Panel A special thank you goes to the delegate of supply and lower real prices over the long run. members completed drafts of chapters and these Uzbekistan, Mr. Bakhtiyor Ibragimov who has Since World War II, agriculture has been trans- were compiled by the Chair and edited into a been serving as Vice Chair. The Standing Com- formed by increased mechanization, expanded fi nished document, including the summary. This mittee has recommended his election as Chair use of chemical fertilizers, improved education report is an excellent compendium of the benefi ts for the coming year as well as the election of the in rural areas, the development of pesticides and and costs of the use of biotech cotton varieties, delegate of South Africa, Mr. Siphiwe Mkhize the extension of electricity to rural areas. The and the work of the Expert Panel is much ap- as First Vice Chair and of the delegate of Spain, process of technology change in agriculture is preciated. Their report will be presented to the Ms. Elena Cores as Second Vice Chair. I per- continuing, and may even be accelerating. Plenary during the Eighth Open Session. sonally support these nominations. You can be In the cotton sector, the most visible of the new assured that the Standing Committee will be in Competitive Challenges technologies is biotechnology. Biotech cotton excellent hands. Competition is at the heart of a market economy, varieties already offi cially account for 24% of and all commodity industries face competitive Thank you for the interesting and challenging world cotton area and about one-third of world challenges from manufactured products. Timber job you have given me. My best wishes for a production and trade, although the real level of must compete with fabricated wood products and productive Plenary Session and for the future of biotech production is probably higher. Biotech the development of plastics. Coffee, tea, orange the International Cotton Advisory Committee. cotton is primarily risk reducing (because of re- juice and milk must compete with each other, ductions in yield variation due to insect pressure) and with soft drinks, powdered drinks and other and cost reducing, leading to larger area and Report of the Executive beverage choices. Copper must compete with greater production. Biotech varieties in China fi ber optic cables. Sugar competes with corn Director (Mainland) are planted on 60% of cotton area. sweeteners and artificial sweeteners. Cocoa GE varieties account for about 60% of area in must compete with palm oil. Grains compete Australia, three-fourths of area in the USA, 6% Terry P. Townsend with each other and with oilseeds, and other of area in India, and fi eld trials are underway in examples of competitive pressures affecting other producing countries. Offi cially enumerated natural commodity industries abound. Activities of the Committee biotech cotton varieties will probably account for The mission of the ICAC is to assist governments half of world production by 2007. For cotton, competition with polyester is a very powerful challenge that is accelerating as chemi- in supporting a healthy world cotton economy. Incremental advances in proven technologies cal fi ber production technology results in lower The Committee achieves this mission by rais- such as irrigation management, pesticide for- costs of polyester production and an increased ing awareness of cotton issues, by providing mulations and pesticide applicators, low till range of uses for chemical fibers. Cotton’s information necessary for decision-making and no till production systems, crop rotations share of world fi ber use exceeded 60% in the and by facilitating cooperation among industry and other management techniques implemented 1960s, fell to 50% during the 1980s and cur- segments and governments on matters of shared through integrated pest management (IPM) and rently stands at 39%. While cotton use is rising international concern. The Committee and the best management practices (BMP) are also con- in absolute terms, the rate of increase over the Secretariat have been active and effective in tributing to lower production costs and expanded last ten years was just 1.3% per year, compared achieving these objectives during the past year. cotton production. All of the technologies are to world population growth of 1.7% per year I would like to report on the major challenges being enhanced by the revolution in information and growth in chemical fi ber use of more than facing the cotton industry and ways in which technology, making possible great improvements 4% per year, resulting in reduced consump- the Committee is serving to meet those chal- in management effi ciency and control of input tion per capita and declines in market share. lenges. applications. Many factors affect end-use demand, including Technology Change Secretariat publications on biotechnology began fi ber prices, fi ber quality, new developments The Secretariat has been raising awareness and in the early 1990s, even before biotech cotton in spinning technology, consumer income and providing information about technology in cot- was planted commercially. The Secretariat consumer preferences. Cotton as a commodity industry must remain competitive with polyester 22 NOVEMBER-DECEMBER 2004 and other chemical fi bers in all facets of competi- survey was discontinued after 1995. best to encourage the expansion of instrument tion if the industry is to continue to grow. testing of cotton at the producer level and to During 2000 and 2001, the Secretariat reached ensure that the results of instrument tests from The role of the ICAC in helping the industry an agreement with the Commodities and Trade all laboratories around the world are suffi ciently to meet competitive challenges is to provide Division of FAO to cooperate to revive the standardized as to be commercially relevant to objective information on fi ber consumption at survey using methods and conversion factors spinners. Almost all cotton is already evaluated the mill and retail levels, and to provide techni- identical to those used by FAO up to 1995. The using instrument testing systems by merchants cal information about quality issues. In addition ICAC helped to identify sources of data and and spinners, because spinners face competi- to statistical and technical information that the cost-effective methods of collection, and FAO tive pressures that require them to utilize the Secretariat has provided since its founding in did most of the analytical work. The result is technical characteristics of cotton in order the 1940s, the Committee now also facilitates the World Apparel Fiber Consumption Survey to optimize spinning results. However, only the work of national cotton industry bodies in with data for 1992, 1996 and 2000 that has been about one-third of world cotton production is providing positive information about cotton to available since early 2004. The data cover 113 instrument tested at the producer level. This consumers through the work of the International countries and provide an excellent tool of de- leaves producers at an economic disadvantage Forum for Cotton Promotion (IFCP). In recent mand analysis for the cotton industry. to buyers in the marketing of cotton and means years the Secretariat has worked to increase IFCP that the incentives to produce the qualities of awareness of the benefi ts of instrument classing cotton desired by spinners are often distorted of cotton for producers and spinners. Following Demand enhancement is crucial to the long term by antiquated hand-classing systems on which an instruction from the 62nd Plenary Meeting, the strategic success of the cotton industry, and the producer prices are based. Secretariat helped to formulate an Expert Panel experience of the USA demonstrates empirically on Commercial Standardization of Instrument that it is possible to raise consumer awareness of Andrew Macdonald of Brazil chairs the Expert Testing of Cotton (CSITC). fi ber content, strengthen consumer impressions Panel on CSITC, and the Rapporteur is Zibig- of the positive attributes of natural fi bers and niew Rostwitalski of Poland. The Panel includes The Secretariat provides a wealth of statistical encourage technical change and fashion trends thirteen additional members representing the information to the cotton industry and govern- favorable to increased cotton use. geographic diversity of the cotton industry ments. The Secretariat provides weekly, monthly and includes producers, spinners, merchants, and annual statistical reports on the world cotton The International Forum for Cotton Promotion cotton controllers and testing laboratories. The situation, monthly reports on supply and demand (IFCP) represents a new approach to demand CSITC panel met in Bremen in March 2004, of extra-fi ne cotton, and annual reports on gov- enhancement work based on national programs, and members have exchanged views via Email. ernment measures, changes in cotton supply, funded from domestic sources, led by the pri- A second meeting took place in Mumbai prior the demand for cotton, the structure of trade vate sector and focused on providing positive to this plenary meeting. The Expert Panel will and developments with e-commerce. Forecasts information to domestic consumers about the report to the plenary meeting during the Third from the Secretariat are suffi ciently accurate to value of cotton. The creation of the IFCP was Open Session, and the recommendations from provide a basis for policy making and investment facilitated by the ICAC, consistent with our role the Expert Panel on CSITC are expected to decisions. Over the last 16 seasons since the Sec- in furthering cooperation in the cotton industry. provide a way forward for the cotton industry retariat began forecasting season averages of the The IFCP serves as a clearinghouse for proven on this important subject. Cotlook A Index, the average error of forecasts of techniques of cotton demand enhancement and world production and consumption given at each provides concrete examples of programs that Government Measures plenary meeting for the current season is less can be easily replicated on a cost effective ba- The issue of government measures that distort than 1.5%, and the average error for the season sis. The IFCP conducted an excellent two-day cotton production and trade is one of the most ahead has been 2%. Forecasts of average prices workshop on demand enhancement techniques important facing the industry. While cotton for the current season have correctly indicated in Cary, North Carolina in May 2004 with the accounts for only about 1% of the subsidies the direction of change in all but two seasons, active support of the U.S. cotton industry. I want received by the agricultural sector in OECD and the correlation between forecasts and actual to thank the organizations that have voted to join member countries, the distortions in cotton are prices for the current season is 80%. Forecasts the IFCP for their vision and commitment to the substantial. of prices given at each plenary meeting for the cotton industry in supporting demand enhance- season ahead have correctly identifi ed the direc- ment, and I urge delegates to visit the IFCP web The venue for the negotiation of reductions in tion of change 10 out of 15 times. site at www.cottonpromotion.org. government measures that distort agricultural production and trade is the World Trade Orga- World Apparel Fiber Consumption Survey Instrument Testing nization (WTO). During 2004, the talks on ag- During the past year, the Secretariat completed The Secretariat has monitored developments riculture in the WTO have continued in Geneva, a cooperative study with the Commodities and in instrument testing of cotton for a number and on August 1, 2004 the General Council of Trade Division of the Food and Agriculture Or- of years. During the 61st Plenary Meeting in the WTO reaffi rmed the Doha Ministerial Dec- ganization of the United Nations (FAO). This Cairo in 2002, representatives of producers and laration and approved a framework agreement survey has a long history. The work was begun consumers agreed that the cotton industry needs that is designed to facilitate the successful con- in the 1960s by FAO at a time when the shares to move forward in the adoption of instrument clusion of the Doha Round by the end of 2005. of wool and cotton in world fi ber mill use were based quality evaluation systems, and during the The agreement refers to signifi cant reforms in falling rapidly due to technology change and 62nd Plenary Meeting in Gdansk in 2003 rep- agricultural policies and addresses specifi cally expanded production of chemical fi bers. Advo- resentatives of merchants and spinners agreed the cotton sector. cates of natural fi ber industries recognized that a that an international agreement on the use of While progress in the Doha Round seems to be missing component in efforts to expand demand instrument based quality evaluation systems is slow, the tide of history is moving in the direction was a basic lack of knowledge of fi ber market needed to standardize quality test results. of reductions in direct support for agriculture and shares at the retail level in countries. The annual Following an instruction from the Commit- in favor of decoupled payments linked to broad surveys were conducted by FAO as an objective tee, the Secretariat formed an Expert Panel objectives of rural development and environ- and neutral statistical organization. Because of on Commercial Standardization of Instrument mental protection. Already under the 2002 farm budget considerations, combined with a shift in Testing of Cotton (CSITC). The purpose of the bill, approximately half of all payments to U.S. priorities within the FAO, the fi ber consumption Expert Panel is to recommend actions on how cotton producers are no longer linked directly to PROCEEDINGS OF THE 63RD PLENARY MEETING 23 current production. Benefi ts are received either component in efforts to improve the effi ciency Common Fund for Commodities through fi xed payments or payments based on of cotton trade. Governments can support good The Secretariat works closely with the Com- historical production. The EU recently agreed to trade practices by encouraging the private sector, mon Fund for Commodities (CFC) to provide shift 65% of benefi ts paid to cotton growers to including textile industries, to join international increased support to the cotton industry. Since decoupled payments based on historical produc- industry associations and to abide by accepted the CFC became operational in the early 1990s, tion beginning in 2006. international trading conventions. a total of 15 cotton projects have been approved The ICAC has a role in the WTO process. Re- During its meeting in March, the PSAP discussed involving over $21 million in grants and loans. ports from the Secretariat inform governments additional steps that could be taken within the Projects currently active include a price risk about the nature and scope of distortions in private sector to encourage good trade practices. management project in East and Southern Af- cotton caused by government measures, and Encouraging the insurance industry to under- rica; a warehouse receipts project in East and discussions in the ICAC help to raise the pro- write performance risk coverage for companies Southern Africa, a project studying methods of fi le of cotton and emphasize the need to reduce operating in international cotton trade would improving input supply in West Africa, and a government measures that distort production and be an innovative approach. It is currently pos- project on the utilization of cotton by-products in trade. The Secretariat was invited to participate sible to ensure against country risk in contracts India. In addition, the Secretariat compiled and in a conference in March 2004 organized by involving international trade, and premiums edited a book entitled, Cotton Facts, which was the WTO in Cotonou, Benin in response to the for insurance policies covering countries with supported by the CFC. The book is proving to General Initiative on Cotton presented by four high-risk ratings are commensurately higher be extremely useful to researchers and students. African countries. The Secretariat also partici- than for countries with lower risk ratings. The The work of the CFC under Managing Director pated in the EU-Africa Cotton Forum in Paris in PSAP suggests that the concept of performance Ambassador Mchumo is much appreciated. July 2004 to identify an action plan for support risk insurance could be extended to contracts Plenary Meetings of the cotton sector in Africa. with individual companies, with insurance companies developing company ratings based The purpose of a plenary meeting is to move The ICAC has a long history of articulate on fi nancial strength, credit history and past forward through agreements to cooperate and statements on the need for substantial progress contract performance. Higher premiums would improve. Meetings are also for the exchange toward agricultural trade liberalization. Country serve as a disincentive to conducting trade with of information regarding the outlook for cotton statements provided during the First Plenary Ses- companies that have defaulted on contracts in the supply, use and prices, changes in government sion of this 63rd Plenary Meeting, and discussions past. At the request of the PSAP, the Secretariat measures affecting the cotton industry and during the Second Plenary Session, will provide is contacting insurance companies and cotton reports from countries and organizations. The additional opportunities to share information and associations to enquire about interest and feasi- Organizing Committee has worked with the encourage a successful outcome to the talks on bility of performance risk insurance. Secretariat and the Standing Committee to ori- agriculture in the WTO. ent the agenda of this 63rd Meeting to focus on I wish to thank Ms. Christine Campbell who Sanctity of Contracts matters of broad concern to all segments of the serves as Chair of the PSAP, and all PSAP mem- world industry. It is a pleasure to be able to thank A central function of governments is to provide bers for their support and assistance. Members of the cotton industry of India and the Government for the rule of law, and the ICAC has endorsed the PSAP serve at their own expense to ensure of India for their efforts in preparing for this the concepts of contract fulfi llment and compli- that the work of the ICAC is relevant to the meeting and for their hospitality. ance with valid arbitral awards. Contract defaults private sector, and their contributions are much are an important problem in the cotton industry. appreciated. The 64th Plenary Meeting of the ICAC will be in Evidence compiled from reports fi led with mem- Liverpool during Sunday September 25 through bers of the Committee for International Co-op- Conferences Thursday September 29, 2005, and the ICA Din- eration between Cotton Associations (CICCA) Based on an earlier recommendation from the ner will be conducted that Friday September 30. indicate that more than 250 companies are listed PSAP, the Secretariat is strengthening its role in The theme for the meeting next year will refl ect as having failed to comply with valid arbitral raising the profi le of cotton by partnering with the role of Liverpool as a world center encom- awards. Defaults on contracts impose costs on coordinating agencies in member countries to passing all aspects of cotton trade. the entire cotton chain in the same way that the organize conferences and workshops on issues The 65th Plenary Meeting in 2006 will be held in costs of shoplifting much eventually be borne related to trade in cotton and textiles. the city of Goiania in central Brazil at the invita- by all shoppers. The Secretariat, in partnership with Cotlook Ltd., tion of the Government of Brazil and the Gover- The Secretariat continues to cooperate with the will assist the Agency for Foreign Economic nor of the State of Goias. This meeting will focus United Nations Commission on International Relations of the Government of Uzbekistan to on the success of the Brazilian cotton industry in Trade Law (UNCITRAL). Mr. Neal Gillen organize a third international cotton conference expanding production in recent years. serves as the representative of the ICAC to in Tashkent during May 2005. It is envisioned New Members UNCITRAL, and his services are much ap- that the conferences in Tashkent will be repeated preciated. at two-year intervals during odd-numbered years I want to welcome delegates from non-member and will focus on issues of importance to Central countries who are participating as observers. All The international cotton trade is taking explicit Asia and the world cotton trade. participants in ICAC plenary meetings are fully steps to preserve and improve the sanctity of con- welcome, and I hope you will consider joining tracts in international trade in cotton by introduc- The Secretariat will also cooperate with the the Committee. Membership in the ICAC is of ing new rules for trading, facilitating education Taiwan Textile Federation (TTF) to organize value to all countries that produce, consume or about good trade practices and by discouraging an international conference on opportunities trade cotton. Membership provides tangible trade with defaulters through identifi cation and for expanded trade in cotton textiles. The one- benefi ts in the form of increased access to sta- moral persuasion. The Private Sector Advisory day conference will be held on October 1, 2005 tistics and technical information provided by the Panel (PSAP) met in Bremen in March 2004, in Taipei. This date was chosen to coincide with Secretariat. Membership in the ICAC can lead to and the subject of good trade practices was a major textile industry conference in Taipei at increased funding for cotton research through the discussed. The PSAP observed that the support that time. It is envisioned that representatives Common Fund for Commodities. And, most im- of governments in providing for the rule of law of the textile industry in East Asia will be the portantly, membership in the ICAC provides the and ensuring that international arbitral awards primary participants. avenue for each cotton industry, including cotton are easily enforced in each country is a crucial textile industries, to join fully into the fraternity 24 NOVEMBER-DECEMBER 2004 of cotton countries in discussions of cotton issues payment of assessments. The Standing Commit- credit for their work. The work of Mrs. Andrea of international scope and signifi cance. tee approved the formation of expert panels on Nicandri and Mr. James Johnson who serve as biotechnology in cotton and instrument testing, offi cers of the Subcommittee on Budget is also Standing Committee and the Standing Committee continued to sup- much appreciated. The Standing Committee functioned effi ciently port the Secretariat’s work on government mea- I thank member countries for the privilege of during 2004. The Standing Committee took se- sures and demand enhancement. The Standing serving as executive director, and I look forward riously the matter of the Secretariat budget and Committee and the offi cers, Mr. Luc Devolder to a successful 63rd Plenary Meeting. the need for all members to remain current in the and Mr. Bakhtiyor Ibragimov, deserve much First Plenary Session

Statements by the International Organizations, Member Countries and Non-member Countries

3:45 PM, Monday November 29, 2004 with biotech cotton. His report is a statement of sity to deal with the impacts of price fl uctuations Mr. Subodh Kumar in the Chair the meeting. and to improve competitiveness. He informed delegates about the creation of a Task Force on The CHAIR called the meeting to order and gave The CHAIR introduced the delegate of the Commodities with participation of experts from the fl oor to the delegate of the Common Fund for European Union (EU) who thanked the Indian the public and private sectors to raise awareness Commodities (CFC) who stressed the coopera- Government for its hospitality in hosting the 63rd about commodities. tion between its organization and the ICAC to Plenary Meeting and welcomed the opportunity enhance cotton competitiveness. The delegate to elaborate on the development of EU cotton The CHAIR introduced the representative of the expressed the Fund’s appreciation to the ICAC policy. The delegate declared that 65% of EU IFCP (International Forum for Cotton Promo- for organizing the successful conference on “The cotton subsidies will be decoupled from production) who reported on the activities of the Forum Role of Commodities in Sustainable Develop- tion and paid out as income support to farmers. with the objective to gain market share at the ment” and for hosting the annual meeting of the The EU considers that the WTO framework expense of chemical fi bers. He described the International Commodity Bodies and the CFC in agreement of July 2004 ids a positive step for- programs initiated and expanded since the last Washington last October. The Fund focuses on ward as cotton will be addressed ambitiously, Plenary Meeting. The Cotton Promotion web- projects supporting smaller cotton producers in expeditiously and specifi cally in agriculture ne- site (www.CottonPromotion.org) was launched the least developed countries to assist them in gotiations. The delegate summarized the main in late 2003, a Cotton Promotion Workshop securing a reasonable income from their cotton development-related aspects of the EU-Africa hosted by Cotton Incorporated, Cotton Council production. The portfolio of projects submit- Cotton Action Plan. She informed delegates that International and the ICAC was held in Cary, ted by the ICAC for fi nancing by the CFC for the European Commission is investigating op- North Carolina in May 2004, and the IFCP has which the ICAC acts as supervisory body covers tions for applying for membership of the ICAC published a Cotton Bulletin Annual for this Ple- currently 15 projects with a total contribution on behalf of the EC. Her report is a statement nary Meeting. The Forum retains its membership of US$ 21.5 million. The delegate announced of the meeting. of 17 member organizations from 13 countries workshops on controlling the cotton bollworm and serves as a catalyst and clearing house for The CHAIR gave the fl oor to the delegate of the in smallholder production systems to be held in information to encourage and facilitate national International Textile Manufacturers Federation West Africa and India in 2005. His report is a market development programs. The representa- (ITMF) who thanked the ICAC for the invita- statement of the meeting. tive informed the delegates that the IFCP will tion and reported on recent activities of the Fed- try to identify candidates that are interested and The CHAIR introduced Dr. Sreenivasan, Di- eration in areas of interest to members of the likely to execute cotton promotion during 2005. rector of the Mumbai-based Central Institute ICAC. He reported that three events marked the He invited government members and organiza- for Research on Cotton Technology to give an involvement of the Federation in matters relating tions to join the IFCP and support its efforts to outline of a new CFC project which recently to cotton, the 13th meeting of the ITMF Interna- improve cotton’s market share. His report is a became operational on the utilization of cotton tional Committee on Cotton Testing Methods in statement of the meeting. plant stalks for value added products, namely Bremen in March of this year, the visit by the particle boards and ceiling tiles. Dr. Sreenivasan Spinners Committee to the San Joaquin Valley, The CHAIR requested delegates of member described the objectives, the process, the appli- California in May and the meeting in Zurich countries to summarize their country statements cations, the expected benefi ts, the constraints and of members of the Spinners Committee with and not to exceed a limit of fi ve minutes. risks of the project. Dr. Sreenivasan’s report is a representatives of ginning, spinning and cotton The CHAIR gave the fl oor to the delegate of statement of the meeting. testing instrument manufacturers. The ITMF ARGENTINA who referred delegates to the fully supports the work of the Expert Panel on The CHAIR recognized the representative of Country Statement that had been distributed. The Commercial Standardization of Instrument Test- CIRAD (Centre de Coopération Internationale delegate insisted on the necessity to eliminate ing of Cotton (CSITC). His report is a statement en Recherche Agronomique pour le Développe- all measures distorting cotton production and of the meeting. ment) who thanked the ICAC for giving him the trade that result in prejudices against developing opportunity to share its views on the evolution The CHAIR recognized the delegate of UNC- countries. He drew the attention of delegates to of the world of cotton. He said that the focus on TAD (United Nations Committee on Trade and the fact that the agenda of the Plenary Meeting GMOs should be accompanied by similar ef- Development) who stressed that cotton is a very should be approved by the Steering Committee forts to strengthen overall research capacity in special product. The UNCTAD is undertaking a before the Inaugural Session in order to allow developing countries and that other techniques project in cooperation with the ICAC fi nanced for eventual changes at the request of member that are less costly, more readily available and by the CFC to improve the sustainability of cot- governments. Argentina’s country report is a easier to master should not be set aside. He raised ton production in West Africa. The UNCTAD is statement of the meeting. the question of the availability of appropriate involved in the WTO activities in Geneva. The The CHAIR recognized the delegate of UZ- data for correctly evaluating the social, economic delegate reported the consensus reached at the BEKISTAN who said that his country has been and environmental impacts of cotton production Conference in Sao Paulo this year on the neces- cooperating with the ICAC since 1992 and PROCEEDINGS OF THE 63RD PLENARY MEETING 25 strongly supports efforts to promote cotton. and compensation for the prejudice caused by the statement of the meeting. The delegate explained the strategy aiming at subsidies. The delegate declared that if nothing is The CHAIR gave the fl oor to the delegate of maintaining cotton production despite sharp done in the short term the whole cotton sector in AUSTRALIA. The delegate reported that pro- fl uctuations in prices by setting a competitive West and Central Africa is facing extinction. The duction is recovering from drought this season environment, developing new technologies, re- delegate concluded by commending the ICAC thanks to good rains. He declared that the suc- ducing costs and improving quality. Uzbekistan Secretariat for the quality of their documents cessful conclusion of the Doha Round remains has a strategy to develop the local processing of and presentation. Australia’s top priority. Australia recognizes the cotton and the exports of value-added products. The CHAIR said that those delegates who had important role that cotton plays in the economies The delegate stressed the importance of the top- already requested the fl oor would be given prior- of many least developed countries and welcomes ics to be discussed during this Plenary Meeting. ity during the next session. the fi ndings of the WTO panel in Brazil’s dis- The delegate invited delegates and observers to pute concerning U.S. subsidies for upland cotton. attend the International Cotton Conference to be The CHAIR thanked the delegates for their com- Australia will continue to push for substantial held in Tashkent May 24-25, 2005 co-sponsored ments and adjourned the session at 5:15pm. result in the next phase of negotiations, while by the Government of Uzbekistan, the ICAC, negotiating free trade agreements. The delegate the Liverpool Cotton Association and Cotton 3:45 PM, Tuesday November 30 2004 stressed that sanctity of contracts is of paramount Outlook. Uzbekistan’s country report is a state- Mr. Subodh Kumar in the Chair importance to the Australian cotton industry. In ment of the meeting. The CHAIR said that full statements will be closing, the delegate thanked the government of The CHAIR introduced the delegate of PARA- distributed to all delegates and included in the India and the sponsors for organizing the Plenary GUAY. The delegate said that the cotton sector Statementsof the Plenary Meeting and asked the Meeting. Australia’s country report is a statement has a tremendous economic and social impact delegates not to exceed a limit of fi ve minutes. of the meeting. in his country, since approximately 25% of the The CHAIR gave the fl oor to the delegate of The CHAIR introduced Christine Campbell, population benefi t directly or indirectly from its INDIA who highlighted the core points of the Chair person of the Private Sector Advisory production. He gave the highlights of the char- country statement already circulated. The del- Panel to present the report of the PSAP. Ms. acteristics of the crop and the structure of the egate stressed the importance of cotton to the Campbell praised her predecessor, Mr. Andrew industry. He reported that production is expected Indian economy. India has the largest cotton McDonald, and welcomed the new members to decline to 288,000 tons of seed cotton this area in the world and the textile industry is the of the Panel, representing Egypt, India and the season because of lower prices. However the largest source of foreign exchange. The delegate Netherlands. The PSAP endorses the interaction government is supporting farmers by partially reported that yield, production and consumption between the private sector, the Standing Com- fi nancing the cost of seeds and through technical are likely to increase in 2004/05. He indicated mittee and the Secretariat of the ICAC. The assistance. The delegate stressed the joint efforts that exports and imports of cotton are totally PSAP supports ICAC priorities to raise aware- to eliminate contamination. Paraguay's country free and described the initiatives taken by the ness about cotton, and to provide information report is a statement of the meeting. Government of India for improving quality, and training to the cotton industry. It agrees that The CHAIR recognized the delegate of SOUTH productivity and production of cotton keeping the WTO is the appropriate forum for agricul- AFRICA who congratulated the government of in view the interests of the growers as well as the tural negotiations and encourages the ICAC to India and the organizers for hosting the meeting. industry. The delegate concluded by thanking the continue raising the profi le of cotton, notably by The delegate commended the Standing Com- ICAC for giving him the opportunity of present- reporting on government measures. The PSAP mittee and the ICAC secretariat for their work. ing the cotton situation in India. India’s country recognizes the importance of the International He declared that signifi cant progress have been report is a statement of the meeting. Forum for Cotton Promotion (IFCP) and wishes made since the Plenary Meeting held in New that general expression of support translate into The CHAIR recognized the delegate of SU- Delhi in 1993 with the liberalization of the cotton concrete programs. Labels are a fundamental DAN. The delegate expressed his thanks to sector in South Africa, the increasing role of the component of cotton promotion. The PSAP the Government of India for their hospitality. ICAC at the service of the world cotton industry compliments the ICAC for inviting representa- He reported that modernization of the cotton and the expansion of biotechnology. However, tives of China (Mainland) at this Meeting. The sector is underway, supported by rehabilitation he deplored that little has changed in terms of PSAP recognizes the importance of following of irrigation networks, structural reorganization distortions of production and trade. He reported the new developments in biotechnology and of production, improvement of fi nancing, and the development of a national strategy for the promoting instrument-based trading of cotton. reduction of tariffs and taxes. Ginning will be South African cotton industry and stressed that The PSAP attaches the utmost importance to privatized. As a result, production is rising in its success depends on cotton prices undistorted good trading practices, the principle of the 2004/05, boosted by good weather and low pest by subsidies paid to farmers in other countries. sanctity of contracts, unifi ed international rules pressure. The delegate mentioned the efforts to South Africa’s country report is a statement of and arbitration and to the enforcement of valid improve quality and reduce contamination and the meeting. arbitration awards. Ms. Campbell’s report is a stickiness. He thanked the organizing committee, statement of the meeting. The CHAIR gave the fl oor to the delegate of the ICAC executive director and staff. Sudan’s CHAD who thanked the government of India and country report is a statement of the meeting. The CHAIR called upon the delegate of CHINA the organizing committee for their warm hospi- (TAIWAN). The delegate said that the textile The CHAIR recognized the delegate of the Arab tality. He emphasized the importance of cotton trade maintains a surplus. However, the tex- Republic of EGYPT who thanked the govern- as the main source of revenue and employment tile industry is facing stiff competition and is ment of India, the organizers, the participants in his country. The delegate said that low prices moving towards integration, high-technology, and the interpreters. The delegate emphasized are threatening the survival of the cotton sector. innovation and high value-added products. The that cotton production and marketing in Egypt The drop in prices this season is due to several delegate invited delegates and observers to at- are moved by supply and demand forces. He factors, but subsidies offered by developed coun- tend the one-day seminar on the opportunities for reported that production fell in 2003/04 leading tries to their cotton producers constitute a major expanded textile trade organized by the Taiwan to imports but rebounded this season. He high- factor contributing to the increase of production. Textile Federation in cooperation with the ICAC lighted the Egyptian zero contamination cotton That is why Chad, Benin, Burkina Faso and Mali in Taipei, on October 1, 2005. China (Taiwan)’s policy and referred delegates to the detailed launched their initiative for the immediate elimi- country report is a statement of the meeting. written statement. Egypt’s country report is a nation of subsidies to cotton production and trade 26 NOVEMBER-DECEMBER 2004

The CHAIR recognized the delegate of BRAZIL The CHAIR gave the fl oor to the delegate of Cotton Association is committed to the principle who said that the theme of the Plenary Meeting BELGIUM who fully supported the declaration of the sanctity of contracts and offers training, was particularly appropriate. Cotton competitive- of the Netherlands on behalf of the EU. The seminars, laboratory testing and classifi cation ness in Brazil, as in other developing countries, delegate said that the Belgian textile industry courses. The GCA represents the Polish Govern- has fi nancial, educational, social and structural is affected by the strength of the euro and by ment at the ICAC and organized the 62nd Plenary limitations. Competitiveness is also impaired increasing competition from China (Mainland). Meeting in Gdansk. Poland’s country report is a by distortions of the world market caused by The future of the sector depends on restructuring statement of the meeting. subsidies in developed countries. Brazil will and innovation provided that the euro does not The CHAIR called upon the delegate of UGAN- continue to push with the Cairns Group and the strengthen further. Fair pricing and the respect DA who thanked the government of India and G20 for a successful conclusion of the Doha of intellectual property rights are also needed the organizing committee and commended the Round and is confi dent that the appellate body of to assure the future of the industry. Belgium's ICAC for the organization of the meeting. The WTO will confi rm the panel’s fi ndings and that country report is a statement of the meeting. delegate reported that production in Uganda is recommendation will be implemented expedi- The CHAIR recognized the delegate of following an upward trend thanks to the interface tiously. The delegate reported that Brazil evolved GREECE who thanked the hosts for their warm between farmers and the private sector. Uganda from being a large importer to becoming a major hospitality. The delegate reported that production appreciates the focus on small farmers put exporter thanks to technology but logistics and is expected to reach 450,000 tons of lint of excel- forward at this meeting. The country is hope- infrastructure are a constraint. Brazil has adopted lent quality thanks to favorable weather and low ful that production will recover to the earlier the universal standards of classifi cation and the pest pressure. Greece has started to establish an level of one million bales. 95% of production debate on the adoption of biotech cotton is on instrument classifi cation system that is expected is currently exported and the country aims at going. The Brazilian delegation congratulated to be completed within 2 years. Reducing costs reducing its export-dependency by developing the Secretariat for having altered the format of and improving quality of production are the top domestic consumption. The delegate concluded this Plenary Meeting, which should be continued priorities. Greece's country report is a statement in stressing the quality of the cotton produced in during future meetings. of the meeting. Uganda. Uganda’s country report is a statement The CHAIR gave the floor to the delegate of the meeting. The CHAIR gave the floor to the delegate of TURKEY who thanked the organizers for of the UNITED STATES who said that the The CHAIR gave the fl oor to the delegate of the lively meeting and the delegates for their detailed country statement has been provided. COTE D’IVOIRE. The delegate stressed that his valuable contributions. The delegate made a He called the attention of delegates to the list presence despite the prevailing crisis refl ects the visual presentation giving the highlights of of USDA websites giving further information. importance attached to cotton and to the work the country report. He said that production is He highlighted the record average yield this of ICAC. He said that cotton is a vital crop for forecast unchanged at 900,000 tons in 2004/05 season in the U.S. as in many other countries poverty alleviation. Côte d’Ivoire supports all with an improved yield and a continuing shift and emphasized the importance of demand- proposals to eliminate subsidies and that peace to the GAP region. Turkey is one of the largest building activities. The U.S. endorses the work will prevail to set the basis for economic and importers of raw cotton in the world and is the of the IFCP. The delegate declared that the U.S. social development. The delegate thanked the second largest supplier of textiles and clothing is fi rmly committed to a successful outcome of Indian government and the organizers for their to the EU. Turkey’s country report is a statement the Doha Development Agenda. He recognized warm welcome. He praised the contribution of of the meeting. the efforts of the PSAP on contract sanctity and India to the universal civilization and concluded The CHAIR recognized the delegate of TAN- encouraged governments to support good trade by saying that the effi ciency of the ICAC could ZANIA who thanked the Government of India practices. The delegate concluded by saying serve as a model for other commodity bodies. for the excellent arrangements and hospitality that the U.S. supports the universal adoption of Côte d'Ivoire's country report is a statement of and congratulated the ICAC Secretariat. The instrument testing. United States’ country report the meeting. delegate said that production in Tanzania is ex- is a statement of the meeting. The CHAIR introduced the delegate of CICCA ceeding 100,000 tons of lint for the fi rst time this The CHAIR gave the fl oor to the delegate of (Committee for International Cooperation be- season, because of favorable weather, attractive TOGO who described the situation of the cot- tween Cotton Associations) who commended prices, promotion campaigns, input availability ton sector. The delegate stressed that cotton is a the smooth organization of the meeting. The and increased participation of ginners through basic pillar for development in Togo as a means representative of CICCA listed the member or- contract farming. However, the outlook for to alleviate poverty among small farmers. The ganizations of 14 countries having a common further development is constrained by rising delegate reported that production this season is objective to propagate and disseminate good energy costs and falling cotton prices. The del- estimated at 180,000 tons of seed cotton. How- trading practices and protect the sanctity of egate concluded by calling for the elimination ever, low prices threaten the cotton sector. The contracts. CICCA strongly supports instrument of all cotton subsidies, which are primarily a delegate thanked the ICAC for its commitments testing of cotton. His remarks are a statement development issue. Tanzania’s country report to raise awareness about government measures of the meeting. is a statement of the meeting. that distort production and trade. He concluded The CHAIR recognized the delegate of the The CHAIR introduced a speaker from the by saying that a level playing fi eld is urgently UNITED KINGDOM. The delegate emphasized private sector of China (Mainland) to make a needed as a matter of survival for West African that cotton has a strong base in the UK despite presentation on cotton production and process- cotton. Togo’s country report is a statement of the fact that the country imports very little, ing in his country. The representative thanked the meeting. through the provision of trading rules, arbitra- the organizers for giving him this opportunity. The CHAIR introduced the delegate of tion services and of numerous ancillary func- He described the negative impact of the very POLAND to present the main points of his tions of value to the international community, small scale of the production units. Despite country’s statement. The delegate reported notably information and research. The UK looks the great number of varieties cultivated, China that mill consumption declined in 2003 due to forward to hosting next year’s Plenary Meeting (Mainland) lacks production of short and long the liquidation of 2 spinning mills. All trade of in Liverpool. United Kingdom’s country report staple cottons. The huge number of gins and the cotton has been liberalized and most cotton is is a statement of the meeting. small size of bales are also detrimental to quality. imported from CIS. Privatization of the Polish China (Mainland)’s country report is a statement The CHAIR thanked the delegates for their com- cotton industry is underway and the sector is not of the meeting. ments and adjourned the session at 5:20pm. subsidized. The delegate said that the Gdynia PROCEEDINGS OF THE 63RD PLENARY MEETING 27

Second Plenary Session Government Measures

11:00 AM, Tuesday, November 30, 2004 duction and exports, as well as for transitional agencies in the implementation of the Cotonou Mr. Atul Chaturvedi in the Chair measures in the form of compensation for cotton Workshop Outcomes, and the OECD established producing LDCs. The initiative received support, two avenues to treat the development aspect of The CHAIR called the session to order and in- but also strong opposition, as it was argued that African cotton, to expand and deepen the infor- troduced Mr. Carlos Valderrama, Head Econo- in addition to subsidies, low prices were also mation on cotton related assistance in the WTO/ mist of the Secretariat, to present a report on the result of competition from synthetic fi bers, OECD Trade Capacity Building Database and to government measures. Mr. Valderrama said that high tariffs on fi nished products, and high yields organize a briefi ng to address the development over the last year, cotton has been the focus of due to favorable weather. There was also op- aspects in January 2005. In Addition, the Direc- attention in several international organizations, position to deal specifi cally with cotton within tor General of the WTO has asked the IMF and particularly in regard to developments at the the agriculture negotiations, where subsidies are World Bank to redouble their efforts to see how WTO. He said that direct income and price discussed globally. There was opposition to the existing programs and additional resources can support programs worldwide last season de- proposal to grant compensation, which is not an be directed toward development in countries clined for the second year to $3.4 billion, with issue for WTO trade negotiations. After Cancun, where cotton is important. China (Mainland) providing $1.6 billion to the the initiative was dealt with by focusing on trade cotton industry. As a result of low prices this In a related development, on September 8, aspects as part of the broader agriculture negotia- season, several governments have already set 2004 a report by a special panel regarding tions, and on development assistance aspects. In up plans for emergency support of cotton for a complaint by Brazil against United States regard to development aspects, the Secretariat of 2004/05. He noted that despite reforms in 1999, subsidies on Upland cotton was issued. On Oc- the WTO, in cooperation with other international the government of China (Mainland) still covers tober 18, the United States appealed the report organizations, including the ICAC, organized a the cost of ginning, storage, and transportation of the panel. Another important development workshop in Cotonou, Benin in March 2004. of cotton through the fi nancing of operations of is the expiration of the Agreement on Textiles The workshop acknowledge the importance of procurement agencies, and as a result, domes- and Clothing (ATC) on December 31, 2004. In cotton for producing countries and the compara- tic prices in China (Mainland) have consistently this regard, the WTO has received proposals tive advantage and quality of African cotton, but been above international prices. Direct income by several members to examine and remedy also revealed that the global cotton market was and price support in the United States declined the unintended consequences of the abolition characterized by slow demand growth, new from $3 billion in 2001/02 to $877 million in of quotas for LCDs. There was support for the entrants, and declining and volatile prices. The 2003/04. Support provided by the European need for trade and development assistance in workshop identifi ed existing programs for fi nan- Union declined from $957 million in 2002/03 order to address the adjustment-related issues cial and technical assistance, and underlined that to $900 million in 2003/04. He also reported that that could follow the expiration of the ATC, but the response to the cotton initiative would have price increases last season reduced the level of there were also strong reaction to the proposals. to take into account coherence between trade and assistance or eliminated the need for assistance Finally Mr. Lapalme noted that there should be development policies. The workshop provided to cotton farmers in developing countries. He no doubt that the ATC will expire as scheduled impetus to the efforts to further the Doha Devel- also reported that subsidies to exports, offered and will not be extended. Mr. Lapalme’s report opment Agenda, which led to the August-2004 by the United States and China (Mainland), is a statement of the meeting. Framework Decision. With the Decision, the declined from $316 million in 2002/03 to $160 Doha Development Agenda is back on track, The CHAIR opened the fl oor for discussion and million in 2003/04. He noted that in addition to leaving behind the disappointment of Cancun. recognized the delegate of AUSTRALIA, who the Secretariat reports, between 2000 and 2003, It was decided that a Subcommittee on Cotton said that his country supported the discussions two other studies on cotton subsidies were com- be established and report to the Committee on that led to the Framework Agreement, and sup- pleted. Further, over the last year more than 20 Agriculture. The Subcommittee, established in ports the work in regard to cotton in the WTO. studies produced by other international organiza- November 2004, will convene in its fi rst meet- The delegate recommended that the Working tions or commissioned by governments and the ing on December 13, 2004. The Subcommittee Group on Government Measures meet to develop industry with researchers in academia had been is open to all members of the WTO, and will recommendations on mechanisms to implement published. Finally, Mr. Valderrama said that the work on all trade-distorting policies affecting the principles agreed in the WTO Framework removal of subsidies worldwide would result in the cotton sector in the three key areas of market Agreement, with the key objectives of export average international cotton prices 5 cents higher access, domestic support and export competi- subsidy and credit elimination, phasing out of than realized in 2002/03 and 2003/04. However, tion, taking into account the need for coherence domestic support, and enhancing of free mar- in the simulation, assumptions about imports by between trade and development aspects of the ket access arrangements, and report to the 64th China (Mainland) in 2003/04 account for most cotton issue. The Director General of the WTO Plenary Meeting. The delegate also suggested of the impact of subsidies on prices, while sub- was instructed to consult with the relevant that the Working Group seek accreditation in the sidies in other countries account for less than international organizations in order to redirect WTO. The remarks of the delegate of Australia one additional cent on prices. Production and existing programs and additional resources are a statement of the meeting. Trade Policies Affecting the Cotton Industry is toward development of the economies where a document of the meeting. The CHAIR recognized the delegate of AR- cotton has vital importance. Mr. Lapalme noted GENTINA, who noted that cotton is the main The CHAIR introduced Mr. Jean-Pierre that the Framework Decision did not mark the source of employment and income in many Lapalme, of the World Trade Organization, to end of negotiations, and that WTO members developing countries, that in the 1990s his report on the latest developments in the WTO had agreed to continue negotiation beyond the country transitioned into a liberalized economy concerning cotton. Mr. Lapalme said that the timeframe of the Doha Declaration and to hold with no government intervention in agricul- July 2003 Sectoral Initiative on Cotton, debated a Ministerial Conference in China (Hong Kong) ture. Nonetheless, as prices declined after the at the Cancun Ministerial Conference called for in December 2005. Since the Framework Deci- late 1990s, the Argentinean cotton economy the establishment of a mechanism to phase out, sion, the WTO asked the OECD Development collapsed, and today is unable to compete with and eventually eliminate, support for cotton pro- Assistance Committee to involve development subsidized economies. Consequently, the cotton 28 NOVEMBER-DECEMBER 2004 sector faces the worst crisis on record. Look- agree on a defi nite timeframe to end, once and Finally, the delegate supported the proposal of ing into the future, the delegate noted that the for all, this practice and re establish just trade Australia and Colombia to reactivate the Work- Doha Round in the WTO is a tool to level the among nations. ing Group on Government Measures. The re- distorted playing fi eld of agricultural trade that marks of the delegate of Turkey are a statement The CHAIR recognized the delegate of the the Framework Agreement is an important step, of the meeting. UNITES STATES, who said that the cotton is- but that much work is still needed. The delegate sue is being handled effectively and ambitiously The CHAIR recognized the delegate of INDIA, noted that Argentina, along with the Cairns and in the WTO. He said his government is in the who said that his country fully supports the G-20 groups, has called for the establishment process of discussing with its WTO partners how views expressed by Australia, Argentina, and of modalities of agricultural negotiations at the best to proceed with the Cotton Subcommittee. other countries, in regard to the distortions that Hong Kong Ministerial Conference in 2005. He said that his government is fully committed to production and export subsidies create to trade The remarks of the delegate of Argentina are a a successful outcome of the Doha Round, where and the serious consequences to disadvantaged statement of the meeting. it is expected substantial reductions in domestic populations in developing countries. The re- The CHAIR recognized the delegate of CHAD, support for all products, including cotton, will marks of the delegate of India are a statement who said that his government supported the be achieved. The delegate added that the United of the meeting. proposal of Australia, that the long process of States has begun activities to fully explore the The CHAIR recognized the delegate of PARA- decision-making in the WTO creates problems development aspects of cotton bilaterally and GUAY, who expressed support for the various for developing countries. He said the problems within the WTO. The remarks of the delegate of remarks by member countries. The delegate of most producers have been exacerbated by the the USA are a statement of the meeting. said that the problem of subsidies vis-à-vis depreciation of the U.S. dollar and that at the The CHAIR recognized the delegate of SOUTH developing countries was of an ethical nature. next plenary meeting many countries would not AFRICA, who said that the ICAC has produced He observed that countries make a decision to be able to be present as subsidies would have suffi cient information to comprehensibly dem- go to war in a limited timeframe, but they think bankrupted them. The delegate noted that the onstrate that subsidies provided by certain twice about eliminating subsidies. He said the Framework Agreement is not ambitious enough countries have a negative impact on cotton poor cannot wait years for answers. The delegate and that more progress is needed. prices, and that this situation is economically supported the initiative to eliminate production The CHAIR recognized the delegate of COLOM- and socially unacceptable. The delegate noted and export subsidies. BIA, who said that her country has, for several that his country developed an excellent strategy The CHAIR noted that the ICAC represented the years, taken into account the grave injury caused with emphasis on disadvantaged communities, world cotton community, that there is consen- by government measures that distort production but that the plan is meaningless because of low sus on the reactivation of the Working Group on and trade. She expressed support for the remarks prices as a result of subsidies. The delegate also Government Measures, and that there is a need of Australia, Argentina and Chad. The delegate noted that developments at the WTO refl ect a to fi nd a prompt solution to subsidies. noted that in the case of Colombia, 60% of the lot of talk but no real action. He supported the imported cotton originates in the United States, proposal of Australia and Colombia to reactivate The delegate of ARGENTINA found that the and that the injury is intensifi ed by the deprecia- the Working Group on Government Measures. words chosen by the Chair were correct, and they tion of the U.S. dollar. The delegate proposed include the concerns expressed by developing The CHAIR recognized the delegate of TUR- to reactivate the Subcommittee on Government countries in WTO. KEY, who said that the role of the ICAC is Measures with instructions to update information signifi cant regarding the issue of government The delegate of the UNITED STATES wished on government measures, to fi ne tune estimates measures, creating a lot of debate, and provid- to clarify that the Working Group would make of the impact of subsidies on production and ing constructive views. The initiative taken by recommendations to the ICAC and that the trade, and to establish participation of ICAC as the ICAC in establishing a Working Group on ICAC might already have observer status with an observer in the Subcommittee on Cotton of Government Measures and the conference held the WTO. The CHAIR confi rmed that the Work- the WTO. The remarks of the delegate of Co- in Washington in cooperation with the World ing Group on Government Measures will report lombia are a statement of the meting. th Bank has been extremely benefi cial in creating to the 64 Plenary Meeting, but that intermedi- The CHAIR recognized the delegate of BRA- awareness of the importance of cotton in the ag- ate actions could be approved by the Standing ZIL, who said that as the response to subsidies ricultural negotiations. The success of the ICAC Committee. [The Secretary General reported is not only a commercial but a social answer, his was evidenced by the Cotton Initiative, which for the record that the ICAC does not currently government expects a fi rm and decisive position highlighted the Cancun Ministerial Conference meet the requirements for observer status with by all member governments against government last year. The delegate said that his country was the WTO]. measures that distort trade. The delegate said that pleased to see that the Framework Agreement Seeing no other requests for the fl oor, the CHAIR the position of Brazil with regard to subsidies will ensure that negotiations will not conclude adjourned the session at 12:20pm. is well known, and member governments must without a successful result of the cotton issues. First Open Session

Economic Outlook and Cotton Prices

11:00 AM, Monday November 29, 2004 an assessment of the world economy. Mr. Jad- 2001 a global synchronized slowdown occurred, Mr. V.K. Ladia, in the Chair hav said that over the last few years, there has with very weak growth in the USA, Japan and been a change in the factors that support world the euro area countries. However, in 2003 and The CHAIR opened the session and introduced economic growth. Whereas in the past at least 2004 there are clear signs of recovery, despite a Mr. Narendra Jadhav, Chief Economist and one industrial economy would pull others and slowdown during the second quarter in Japan and Principal Advisor of the Bank of India, to make sustain world economic growth, in 2000 and the USA. It is expected by the IMF that world PROCEEDINGS OF THE 63RD PLENARY MEETING 29

GDP will expand by 5% in 2004, and given the regions, with consumption in developing 2003/04, as a result of production falling behind increasing risk to sustained growth a recent con- countries accounting for an increasing share of mill consumption in China (Mainland), Pakistan, sensus forecast suggest 4% growth of the world world fi nal consumption. Lower prices play an India, and Turkey, an event that made these four economy. The recent recovery is broad based, important role in support of cotton consumption, countries more dependent on cotton imports. He and includes a number of emerging markets. along with increases in income per capita and said that the increases in world imports of cotton Further, the recovery is providing stability to population. Two other factors supporting cot- were met by increases in exports by the USA. fi nancial markets, as higher interest rate policies ton consumption were the gradual integration Mr. Guitchounts mentioned that world trade is have prevented stronger infl ationary pressures of textile trade into WTO rules and research and expected to decline this season, as there will be due to the hike in oil prices. There are signs of promotion of cotton. Finally, in regard to mill less need for imports in producing countries. tighter monetary policy, particularly in the US consumption of cotton, Mr. Valderrama noted He also mentioned that biotech cotton is being and China (Mainland), and fi scal stimulus in an that it was increasingly concentrating in China traded in increasing volumes, as production of increasing number of countries. In addition, the (Mainland), at the expense of the rest of the these cottons has increased, and that it accounted U.S. dollar has depreciated against other mayor world, particularly in industrial countries. China for an estimated 36% of world cotton trade in currencies, with most of the decline taking (Mainland) accounted for 32% of world cotton 2003/04. Finally, in reference to prices, Mr. Gui- place since September 2004, and many Asian processing in 2003, and the share is expected to tchounts said that because increases in stocks currencies depreciating or stable. Despite global increase to 36% in 2005. His presentation is a outside China (Mainland) and declines in net growth driven mainly by the U.S. and Chinese statement of the meeting. imports by China (Mainland), cotton prices, as economies, markets in emerging countries such measured by the Cotlook A Index, were likely to Mr. Gerald Estur, Statistician of the Secretariat, as India have facilitated growth elsewhere in average 50 cents per pound in 2004/05 and that said that higher prices in early 2004, favorable the world. In regard to the risk underlying the initial estimates of supply and demand suggest weather, and the use of new technologies caused present phase of the world economy, Mr. Jad- that season average prices could increase to 55 an increase in world production to a record 24.4 hav, noted that there were two leading lines of cents per pound in 2005/06. His presentation is million tons in 2004/05, outpacing consumption arguments, one with emphasis on the transfer of a statement of the meeting. and causing a drop in prices. World cotton area surplus from China (Mainland) and other Asian is estimated up 11% to 35.5 million hectares in The CHAIR thanked the Secretariat for the re- emerging economies to fi nance the U.S fi scal 2004/05, while favorable weather generated reports and opened the fl oor. Answering a question and current account defi cits as the key element cord world yields of 687 kilograms per hectare from the delegate of EGYPT, Mr. Valderrama facilitating the current global recovery, and an- in 2004/05, He mentioned that mainly because said that while cotton consumption per capita de- other with emphasis on the balance between the of lower costs of production, cotton prices will clined in the 15 years to 1998, it increased from arbitrage of interest rates in industrial countries average over the next decade much lower than 3.2 kilograms in 1998 to 3.4 in 2003. Answering and the risk of returns in developing countries the 70 cents per pound average of the last 3 a question from the delegate of ARGENTINA, on the one hand, and the balance between global decades. New cotton areas in high-yielding Mr. Jadhav said that the depreciation of the U.S. corporate need for a cheap and younger labor Xinjiang (China), Mato Grosso (Brazil), and dollar was a result of the defi cits in the U.S. force in developing countries and organized Southeast Anatolia (Turkey) are being expanded, and the fl exibility of exchange rates, and that, unions in industrial countries. Finally, Mr. contributing signifi cantly to the increase in world in general, exports from developing countries Jadhav noted that a number of crucial factors production since the mid-1990s. Production in were increasing due to the global recovery and pose a risk to the current recovery: the recent the African franc zone has doubled since 1993. that so far the depreciation of the U.S. dollar has increase in commodity prices, particularly oil Together, Xinjiang, Mato Grosso, East Turkey, not been felt. In response to a question by the prices, the need for an adjustment of the current and the CFA zone, will contribute an estimated delegate of SOUTH AFRICA, Mr. Estur said that global imbalances generated by the defi cit of 2.5 million tons of additional world production the effect of government measures on domestic the U.S. current account, and the unsustainable this season, representing 10% of the world total. production is to increase the level of production nature of the current investment boom in China Records or near-records are forecast in China for any given cost of production. (Mainland). The CHAIR thanked Mr. Jadhav for (Mainland), the USA, India, Pakistan and Brazil, this remarks. Mr. Jadhav’s remarks are a state- In response to a question by the delegate of the major producing countries. Finally, Mr. Estur ment of the meeting. INDIA, Mr. Guitchounts said that there is no noted that despite much lower world prices in known difference in trade between biotech and The CHAIR introduced the Head Economist, 2004/05, government measures remaining in non-biotech cottons, and that as a result there Statistician and Economist of the Secretariat to place in many countries, and the expanding use was no price premium or discount for biotech present a report on the outlook for world cotton of improved technologies, world area is expected cotton in international trade. supply and use. to decline by about 5% to below 34 million hectares next season. Assuming average yields, Seeing no further questions, the CHAIR con- Mr. Carlos Valderrama, Head Economist of world production is forecast to decline to 22.7 cluded that consumption was concentrating in the Secretariat, noted that cotton consumption million tons in 2005/06. This would still be the Asia, that biotech cotton was increasingly impor- increased to record levels for the fifth year second largest crop on record. His presentation tant in world cotton trade, and that cotton prices and that it was expected to increase to a new is a statement of the meeting. will likely remain low in the next few years, record this and next year to 22.3 million tons in while polyester prices will likely increase. 2004/05. He mentioned that increases in fi nal Mr. Andrei Guitchounts, Economist of the Sec- consumption of cotton were broad based and retariat, said that world cotton trade increased The CHAIR adjourned the session at 12:30 included countries across all socio-economic during the last 3 seasons to 7.3 million tons in pm. 30 NOVEMBER-DECEMBER 2004

Second Open Session

The Role of Importance of National Cotton Sector Associations

1:45 PM, Tuesday November 29, 2004 the delegates. Members believe the benefi ts of other cotton organizations participates in for- Mr. K.F. Jhunjhunwala in the Chair Council membership are broadly encompassed mulating national cotton policies and purchase in communicating united industry positions on prices, works on improving cotton quality and The CHAIR welcomed all participants to the issues and working for U.S. policy that assures classifi cation procedures, organizes tenders for Second Open Session. He commented that it is worldwide competitiveness and protects mem- purchases of agricultural inputs, disseminates very important for the cotton trade and industry bership’s profi tability. Mr. Terhaar described cotton information by quarterly edition of Cotton to speak with one voice; however the cotton services provided by the NCC, including tech- Magazine and defi nes cotton research programs industries of many countries, including India nical, economic, information, communications, together with the National Center of Agronomic are highly divided and are unable to unite in the member and meeting and travel services, as well Research aimed at modernization of the cotton achievement of common goals. He noted that as as the work of Cotton Council International in industry. Mr. Alidou concluded that the lib- a consequence, many countries are not able to international promotion of U.S. cotton exports eralization reform provided an institutional maintain a cotton industry focus in the pursuit of and the Cotton Foundation in fostering research framework for consolidation of cotton industry shared interest and the issue is of critical impor- and educational programs. He said that the suc- resources in associations like APROCOT-CI tance with advancing globalization efforts. The cess of the NCC stems in part from the balanced in order to strengthen cooperation in making CHAIR informed that the initiative for formation representation in the internal policy development the industry modern, effective, profi table and of National Cotton Board of India was taken by process and the fact that various segments of competitive. Mr. Alidou’s report is a statement the East India Cotton Association, supported by the industry must work for consensus in order of the meeting. the Indian Cotton Mills Federation and a booklet to obtain the support of all groups. Mr. Terhaar on the subject was produced in 1998 and circu- The CHAIR introduced Mr. Félix Stiegwardt of concluded that the U.S. cotton industry looks lated with the materials in the document kit for CADELPA, Paraguay to make a presentation on forward to the day when cotton producing na- this meeting. Mr. Jhunjhunwala’s remarks are a the importance of national cotton associations. tions like China, Brazil, India, Pakistan and statement of the meeting. Mr. Stiegwardt reported that CADELPA is an Turkey all have organizations that can support association of private enterprises in Paraguay ac- The CHAIR introduced Mr. Allen Terhaar, Vice the aggressive advertisement and marketing of tive in cotton ginning, trading and exporting with President for Foreign Operations of the National the benefi ts of natural cotton to consumers in the purpose to cooperate in the development of Cotton Council of America to present a report those important cotton fi ber and cotton product the cotton business, to defend the common inter- on the role and function of the National Cotton producing countries. He said cotton’s greatest ests, and to communicate with one voice with the Council. Mr. Terhaar reported that the National competitor is not other cotton or cotton textile government, other associations, producers and Cotton Council of America was formed in 1938, producing countries, rather its great competitor the media. He described the role and activities when the cotton industry was in crisis to represent is man-made fi ber. Mr. Terhaar’s presentation is of the association, including research activities the cotton value chain from producer through to a statement of the meeting. and support for CIRAD program in Paraguay, manufacturer and to strengthen the industry’s The CHAIR introduced Mr. Kone Alidou, vice promotion and improvement of productivity in ability to compete effectively and profi tably in president of the Trade Association of Cotton cotton production in Paraguay, participation in fi ber and oilseed markets at home and abroad. Companies of Cote d’Ivoire (APROCOT-CI) formulating and implementation of effi cient gov- He noted that the NCC is the only organization to present a report on the role of APROCOT- ernment cotton policies, improvement of cotton representing all seven cotton industry segments CI. Mr. Alidou reported that since the govern- quality, elimination of contamination and pest (producers, ginners, warehousemen, crushers, ment decided to expand cotton production in infestations, dissemination of statistics and infor- marketing cooperatives, merchants and textile Côte d’Ivoire in 1962, cotton production rose mation on international and Paraguayan cotton manufacturers) and for more than 65 years the to 174,000 tons of lint cotton in 2002/03, and markets. Mr. Stiegwardt noted that public and NCC has compiled an impressive record of advo- now involves 200,000 farmers and plays an private sectors need to work together in order to cacy for the industry. Each segment has an equal important role in the economic development achieve effective and lasting solutions on any voice in developing policy in support of the NCC of the country. He said that with the start of matters concerning the implementation of cotton mission. Mr. Terhaar said that like the Congress the liberalization of the cotton sector in Côte policies. He conveyed a successful example of of the U.S., the NCC develops policy through a d’Ivoire in 1998 it became necessary to create a CADELPA implementing a government sup- representative body of delegates selected by each number of new organizations and associations port program subsidizing planting seed for the segment through state, regional and national or- to regulate, manage, organize, aid and represent 2004/05 crop in the amount of $9 per bag or ganizations, and when a majority of delegates cotton industry companies. These organizations $3 million total. Mr. Stiegwardt concluded that and members of the Board of Directors from are: ARECA, a government regulating authority with up to 25% of the Paraguayan population each of the seven segments, voting separately, for cotton and cashew nut; INTERCOTON, an dependant directly or indirectly on cotton it is approves a recommendation, it becomes NCC association of organizations engaged in cotton the responsibility of the cotton industry to be policy. He informed that the delegates of the Na- production, processing and marketing; APRO- organized and to speak in consensus with one tional Cotton Council serve on standing program COT-CI, a trade association of cotton companies voice on matters of importance for a healthy de- committees to annually review Council policy in of Côte d’Ivoire; and AFFICOT-CI, an associa- velopment of cotton industry. Mr. Stiegwardt’s major areas of operation, such as farm programs tion of cotton producing cooperatives of Cote report is a statement of the meeting. and economic policy, international trade policy, d’Ivoire. Mr. Alidou described an important public relations and international market devel- The CHAIR introduced Mr. Syed Masood role of APROCOT-CI in supporting a dialogue opment, research and education, packaging and Alam Rizvi, Chairman of Trading Corpora- between cotton industry organizations and the distribution and health, safety and environmen- tion of Pakistan (TCP) to make a presentation government, facilitating a healthy development tal quality. He noted that the NCC is supported on the need for raising cotton productivity for of the cotton industry, fair competition and fi nancially by voluntary contributions from the developing countries like Pakistan. Mr. Rizvi providing technical assistance to growers. He seven segments, on a per-bale or per-ton-of- reported on the role of cotton in economy of noted that APROCOT-CI in cooperation with seed basis, through a fi nance plan approved by Pakistan and that the government of Pakistan PROCEEDINGS OF THE 63RD PLENARY MEETING 31 provides guaranteed support price to growers ers, seed producers, traders, textile mills and integration with international markets, informa- through the TCP in order to protect growers government organizations. He suggested that tion becomes increasingly important. Ms. Guo from the adverse effects of wide fl uctuations in CICCA should play a leading part in ensuring stated that the CNCE is an important carrier for international prices. He said that the prime need healthy marketing practices in developed econo- the county’s macro economic policy and a source for cotton producing/developing countries is to mies and that all national cotton associations of of price discovery, as well as a forward trading achieve stable conditions in the cotton trade by producing countries should hold annual meet- platform where more than 2.6 million tons of cot- avoiding excessive price fl uctuations and as- ings to discuss issues of contamination, ginning ton was traded since December 2002. She invited suring remunerative price levels. Mr. Rizvi modernization, crop development and market- participants to the China International Cotton proposed to form an Association of International ing. Mr. Viswanathan said that Indian cotton Conference, which will be held in Shanghai in Cotton Producers to contribute to stabilization associations are working now with the banking June 2005. Ms. Guo Rongmin’s presentation is of international cotton prices and to promote the system on strengthening delivery-payment links a statement of the meeting. orderly and rational development of production, in the supply chain. Mr. Viswanathan’s report is The delegate of UK said that national cotton processing and trade of cotton through economic a statement of the meeting. sector associations have a vital role to play. and technical cooperation. He also described an The CHAIR introduced Ms. Guo Rongmin of However on the international arena co-op- important role of the TCP in improving standards Beijing Cotton Outlook Consulting Co. to make eration takes a different form. This includes of ginning, packing and quality of contamination a brief introduction about the China (Mainland) the Liverpool Cotton Association, soon to be free cotton by providing fi nancial motivation to cotton market. Ms. Guo noted that China (Main- renamed the International Cotton Association. ginners and growers through the payment of a land) is the largest cotton producer playing a He noted that the increase in the number of quality premium. Mr. Rizvi's report is a state- key role on the global cotton market. With national associations re-enforces the need for ment of the meeting. the opening of China (Mainland)’ market, the united effective collaboration within the context The CHAIR introduced Mr. Viswanathan, country interacts signifi cantly with international of the Committee for International Co-operation honorary secretary of the South India Cotton market. She reported that in 2004/05 in China between Cotton Associations (CICCA) as well Association (SICA) to present a report on the (Mainland) area is estimated at 5.65 million as the ICAC. His remarks are a statement of role of national cotton associations. Mr. Viswa- hectares; production at 6.15 million tons; mill the meeting. nathan reported that many producing countries use at 7.6 million tons; total consumption at 8 The delegate of IRAN informed that cotton co- depend on cotton as a prime source of income. million tons; yarn output at 11.03 million tons; operatives organized in Iran 37 years ago created However, producers are exposed to market the gap between production and consumption at a union in September of 2002, supported by the uncertainty and price volatility. He suggested 1.85 million tons and imports could exceed 1.5 government privatization policy. He said that the that national cotton associations supported by million tons. Ms. Guo reported that in order to re- union membership includes 70% of farmers and international development agencies, including fl ect the Chinese cotton price the China National 23 cooperatives and has three objectives: poli- The World Bank, should be strengthened and Cotton Exchange (CNCE) established a Chinese cymaking, production practices and trading. He play an important role in helping growers to ad- Cotton Price Index, known as CC Index in June reported that for the fi rst time in Iran’s history, dress market volatility and become economically 2002, representing the delivered mill price for production of basic and certifi ed seeds are per- effective. He noted that SICA strongly supports Type 328 and refl ecting the competitive level formed at the union’s Kashmar ginning mill to the transfer of new technologies such as biotech or offering price, not the contract price. She guaranty quality and purity. He urged members cotton to farmers. Mr. Viswanathan observed that noted that a national weighted average price is to share views and experiences on privatization national cotton associations have a key role in produced for each type of cotton and location. in developing countries. His remarks are a state- ensuring that cotton traders and transportation She said that the China Cotton Association ment of the meeting. companies contribute to successful marketing (CCA) decided in September 2004 for form when raw materials are reasonably priced for a special group to draft and promote Chinese The delegate of COLOMBIA asked on what ex- textile industry and are remunerative to cotton cotton import and export rules on the basis of periences could be taken into account by growers growers. He indicated that national cotton as- Chinatex Terms and international rules that are and ginner organizations in order to achieve an sociations should work for cost effective bank- benefi cial to Chinese cotton industry. Ms. Guo effi cient scale of production. ing, disseminate reliable market information and informed that China (Mainland)’s government is The CHAIR summarized the session noting that serve as a liaison with governments to protect planning to reform of the classing system within good and practical suggestions were made that and safeguard the industry and the grower. Mr. fi ve years, including a switch to instrument test- will help to refocus the attention on the subject, Viswanathan reported that the East India Cotton ing at ginning mills, a switch to a bale size of 227 and member countries will be able to take steps Association, South India Cotton Association and kilograms from 85 kilograms, coding of bales in the direction of forming national cotton sector Indian Cotton Mills Federation have played very and establishing a professional warehousing sys- associations for enhancing competitiveness. dynamic roles in bringing together cotton grow- tem. She noted that in the course of reform and The CHAIR adjourned the session at 3:15pm. Third Open Session

Trading Cotton in an Instrument Based Classing System

9:00 AM, Tuesday November 30, 2004 classing system. Mr. Grover stated that there cotton classing system in India and mentioned Mr. Nayan Mirani in the Chair couldn’t be two opinions about the need for in- that 1,800 spinning mills in India have about strument testing which eliminates human error, 225 HVI machines, but still most cotton is pur- The CHAIR called the meeting to order and reduces disputes and arbitration and brings trans- chased based on visual assessment. According emphasized the need for instrument testing of parency in the trade befi tting farmers. According to him mills are reluctant to use HVI because of cotton, which according to him is indispensable to Mr. Grover, India needs to class seedcotton an unwillingness to pay a premium for quality for proper quality evaluation. He invited Mr. and lint because of the current marketing systems cotton. Grading is done with the help of standard Subhash Chander Grover of India to deliver his in the country. Mr. Grover explained the current boxes produced by the East India Cotton As- paper on trading cotton on an instrument based 32 NOVEMBER-DECEMBER 2004 sociation Ltd. The Cotton Corporation of India times HVI data is considered doubtful for price or six years ago ARGENTINA requested that (CCI) is also involved in grading of seedcotton negotiations while re-classing on the receiving ICAC includes instrument testing of cotton in and lint as the corporation also buys seedcotton ends also creates some doubts about the reli- the plenary statement. The delegate noted with directly from farmers. Lint is tested by CCI on ability of data. Dr. Kabissa concluded that more satisfaction that the issue is making headway and HVI machines and 5-10% samples are tested in work is needed to refi ne results. Dr. Kabissa’s now HVI testing is followed in a large portion outside labs for comparison and transparency presentation is a statement of the meeting. of the world trade. The delegate also suggested purposes. Mr. Grover listed inconsistency of test including instrument classing in the statement Mr. Andrew Macdonald presented a report of the results, belief that HVI data do not indicate over- of the meeting. He remarked that international Expert Panel on Commercial Standardization of all fi ber quality, ginners’ reluctance to abandon agencies like the Common Fund for Commodi- Instrument Testing of Cotton. He emphasized the traditional methods and an absence of a reputed ties should facilitate expansion of instrument word ‘commercial’ which indicates that devia- and irrefutable agency as impediments in the testing for the benefi t of industry and producers. tions from a given standard could be considered adoption of instrument classing of cotton in In- The remarks of the delegate of Argentina are a acceptable in commerce, even though they may dia. Mr. Grover proposed a number of steps to statement of the meeting. not be acceptable in a scientifi c forum. Mr. popularize instrument classing of cotton which Macdonald focused his presentation on seven The delegate of the USA stated that the United included acceptance of HVI calibration mode, future actions proposed by the Expert Panel States supports the objectives of the Expert spinners’ acceptance to pay quality premium, for Commercial Standardization of Instrument Panel. He said that industry-accepted standards establish an independent classing agency and Testing of Cotton. The fi rst issue is defi nition played a major role in adopting instrument-based ginners’ recognition that HVI empowers them to of specifications for cotton trading and Mr. classifi cation in his country. The delegate sup- bargain for better prices. Mr. Grover’s presenta- Macdonald said that the Panel has decided to ported the role of the ICAC in leading the in- tion is a statement of the meeting. initially limit its recommendations to micronaire, ternational standardization work and said that Mr. Thirupathi presented a paper on improve- strength, length (UHML), length uniformity and the USA is pleased to be apart of this process. ments in systems and procedures to help the Rd and +b color readings. The Expert Panel is The USA offered experience, knowledge and as- cotton trade adopt instrument-based classing suggesting that the Fiber Institute Bremen, to- sistance in achieving Expert Panel’s goals. The systems. Mr. recommended that only HVI cali- gether with the USDA, ITMF International Com- remarks of the delegate of USA are a statement bration cottons should be used to calibrate HVI mittee on Cotton Testing Methods and CIRAD of the meeting. machines. He also suggested using Rd and +b draft basic rules for international cooperation The delegate of BRAZIL congratulated the data be used in classing of cotton rather than a in testing cotton. Once the Panel has approved Expert Panel and regarded instrument testing set of color grades as practiced in the USA. Ac- the rules, it will work with cotton industry or- very critical for the cotton industry, trade and cording to Mr. Thirupathi the USDA color grades ganizations for acceptance and popularization farmers. The delegate referred to a presenta- are not appropriate for all cottons worldwide. of rules and their inclusion in the associations’ tion made earlier in the session and stated that He also proposed to establish acceptable limits rules. He added that in this regard, certifi cation instrument testing is benefi cial for small farm- for the natural variation among instruments of testing centers is contemplated. The panel ers. Brazil looks forwards to rules developed by conducting round trials among reputed proposed that ICAC, based on the evaluation of by the panel. labs. Sample conditioning is another source of the Fiber Institute Bremen and USDA, would variation among labs and a limiting factor to issue and withdraw certifi cation. Other institu- The delegate of PAKISTAN also congratulated adopt machine-based classing systems. In this tions could also be involved in certifi cation of the panel and suggested to include the Karachi regard Mr. Thirupathi stressed upon machine laboratories. The panel is also recommending Cotton Association among other institutions manufacturers to come up with quick and con- establishing calibration standards including valid to be consulted in the implementation of venient methods to condition test samples. He defi nition of calibration standards, control of the standards rules. Mr. Macdonald agreed to this also suggested redefi ning acceptable tolerances section of standards and validity and forwarding suggestion. for various characters that are now based on of calibrations standards to all labs. The expert The delegate of AUSTRALIA regarded current instrument’s capability to measure a particular panel is proposing to assign this work to the recommendations as only the fi rst stage, which character rather than commercial acceptance and USDA. Mr. Macdonald said that the Expert will be further, developed as the process is impact on the end use for the buyer. He also Panel is also proposing to establish commercial digested by a large part of the cotton industry. proposed to gradually adopt short fi ber content control limits for the four characters mentioned The delegate observed that it is time to make and neps in classing cotton. Mr. Thirupathi’s above, which will guide acceptable ranges and a decision and move forward for commercial presentation is a statement of the meeting. limits for trading tolerances. It is believed that standardization of instrument testing of cotton. such an exercise will lead to acceptable varia- Dr. Joe Kabissa of Tanzania shared the experi- The delegate observed that a lot of interesting tions among labs. It will also serve as basis for ence of HVI classing of cotton in his country, work is going on in various places, which could commercial trading control limits. The agreed he stated that Tanzania adopted HVI classing in ultimately be used in classing of cotton. He said upon limits will also be employed in arbitration 1991 using MCI 4000 machine but the machine accurate and precise measurement of fi ber qual- procedures. Mr. Macdonald observed that the broke down in 10 years. In 2001 instrument ity can improve cotton’s competitiveness against action plan needs to develop strong support in classing of cotton was stopped. Instrument synthetics. the cotton industry and will also require fund- classing of cotton was resumed in 2003 using ing for implementation of various components The delegate of SUDAN also thanked and val- a Spectrum II. Dr. Kabissa thanked the Cotton of the action plan. Mr. Macdonald's report is a ued the work of the Expert Panel. The delegate Fund for Commodities for providing funding for statement of the meeting. stressed the need to develop a consensus and not this machine costing US$215,000. Currently, limit instrument testing to HVI machines only. Tanzania undertakes hand as well as HVI clas- The CHAIR remarked that time is not far when He agreed with Mr. Kabissa on the high cost of sifi cation, and the cost for HVI testing is US$2 all cotton in the world will be classed by in- maintenance. per sample. About 400 sampled of cotton are struments. He opened discussion of the papers tested daily, but testing revenue is not suffi cient presented in the session. Regarding a question from the delegate of IN- to pay for the maintenance costs for the machine. DIA on the effect of moisture on fi ber length and The delegate of ARGENTINA congratulated Maintenance is required every year for which micronaire, Mr. Macdonald replied that moisture the ICAC and the expert panel for bringing they have to call an expert from South Africa at variations do affect length and micronaire but the up such an important issue for discussion and a substantial cost. Mr. Kabissa stated that some effect on strength is drastic. Regarding the time conclusion. He reminded delegates that fi ve frame, Mr. Macdonald replied that he expects PROCEEDINGS OF THE 63RD PLENARY MEETING 33 to have draft rules in 3-4 months and by the The delegate of UZBEKISTAN informed the involve a joint effort with the Common Fund for next plenary meeting rules could be approved meeting that his government purchased 35 HVI Commodities. while the implementation of rules may take machines with help from The World Bank, and Delegates of SOUTH AFRICA and ZIMBA- several years. for the last two years all cotton is classed on BWE also supported the work of the Expert HVI machines. He supported the work of the The delegate of GERMANY also supported the Panel. expert panel. proposal and stated that she is delighted to see The delegate of PAKISTAN mentioned the that the Fiber Institute Bremen is willing to play The delegate of TURKEY congratulated the Pakistan Cotton Standards Institute, which was an important role in implementation of expert Expert Panel and supported its work. He added established over 15 years ago and so far has pro- panel recommendations. that he looks forward to a time when all cotton duced over 1,000 trained classers. He offered will be classed by instruments. The delegate of INDIA congratulated the Expert the services of the Pakistan Standards Institute Panel and regarded its work as a step forward The delegate of the EUROPEAN COMMIS- in implementation of the recommendations of toward harmonization of good trading practices. SION (EC) also supported the objectives and the Expert Panel. He proposed that developing countries should approach followed by the Expert Panel. He said Concluding the session, the CHAIR observed also be involved in framing rules for standard- that the EC would consider fi nancial support to that the way forward is instrument testing that ization. He continued that the East India Cotton both the international component and African will enable unanimity to all players. Association should be part of the arbitration countries as part of the EU-Africa Cotton Part- process and the cost of implementation of rules nership. He added that the possible support could The session was adjourned at 10:15 am. should be low. Fourth Open Session

Strengthening the Input Supply Chain to Small Holders

1:45 PM, Tuesday November 30, 2004 Farming and aimed at increasing productive ca- ticide sprays declined from 19 to 12 in project Mr. P.D. Patodia in the Chair pabilities and capacity building. Mr. Chinnas- areas leading to higher profi tability. wamy informed that now there are 1,500 farmers The CHAIR opened the session by saying that The CHAIR introduced Mr. Bruce Robertson of in the program organized in 65 Self Help Groups the subject of the availability of quality inputs Uganda to present a report on providing farmers covering 800 hectares and benefi ting from ac- at the right time and at affordable prices is of with access to inputs, a ginner’s perspective. Mr. cess to resources, technologies and fi nance to considerable relevance to raising productivity Robertson reported that North Bukedi Company improve yields. He said that Appachi cotton of small cotton growers and the most important operates two roller ginneries and one saw gin- negotiated fi nancing with banks at special rates inputs are high quality certifi ed seeds, manures nery (20% market share in Uganda; two saw for these groups, discounted prices with input and fertilizers, pesticides, credit and water sup- ginneries (50% market share) in Malawi; and suppliers and insurance companies, appointed ply. He noted that the session is devoted to reality one saw ginnery (18% market share) in Zimba- agronomist to help them to grow uniform quality and suggestions on ways to improve input supply bwe. He described the company’s experiences cotton and provided a unique selling proposi- chain and transfer of technology to help small in Uganda where after the liberalization of the tion where a farmer has an option, but not an farmers to enhance incomes. The Chair thanked cotton market in early 1990’s and the fi rst for- obligation to sell his cotton to Appachi, thus not the organizers of the ICAC meeting for keeping eign investment made in 1995 in North Bukedi binding farmers with pre-determined prices. Mr. this vital subject for open session discussion and Cotton Co., a challenge was to build seed cotton Chinnaswamy noted that the Appachi formula providing an opportunity to know the gravity of volumes to supply ginneries to capacity, to build approach is a win-win situation and is linking the problems being faced by small landholders systems to ensure excellent quality of lint and to individual entities to the value chain, providing in different countries and also to know various develop rural areas in catchments (cotton produc- benefi ts like effective extension, integrated pest, measures taken to strengthen the input sup- tion) areas. Mr. Robertson reported that in order nutrient and crop management, access to inputs, ply chain. He noted the discussions would be to build volume, to deal with the non-recovery market information, post-harvest management, of immense use to all those who are keen to of production credit, the Uganda Ginners’ As- prompt cash payment and increased incomes. raise productivity, improve quality and raise sociation was formed with the help of the Cotton He expressed a strong believe that the model can incomes. Mr. Patodia’s remarks are a statement Development Organization (CDO) and ginners be successfully replicated in many parts of India of the meeting. co-opetition (a compromise between cooperation and other countries, and last year the government and competition) was created leading to a rise in The CHAIR introduced Mr. Mani Chinnaswamy of Iran invited Appachi to share the experience Uganda’s cotton production from 33,000 bales of Appachi Cotton Co., Indian ginner to present for replication. Mr. Chinnaswamy’s report is a to 120,000 bales. He said that in order to break a report on strengthening the input supply chain statement of the meeting. the ceiling lead ginners in each zone provide to small producers: the Indian experience. Mr. Dr. Basu of the Cotton Corporation of India inputs and extension to farmers, and participat- Chinnaswamy reported that small cotton produc- (CCI) commented that CCI has been engaged ing ginners cooperate with the lead ginners. He ers in many countries, especially in Asia and in cotton farming throughout India, which is explained that North Bukedi placed a focus on Africa are the worst affected by price volatility, benefi cial to farmers as well as textile mills. He farmer training, input provision through groups uneven access to technology and subsidies, and noted that there is a holistic approval of contract of farmers and established 1,200 demonstration that there is a need to deliver price and income farming program involving a producer, input plots, each with a lead farmer, 20 collaborating benefi ts to resource-poor small farmers around supplier, technology provider and the buyer. farmers and 100 site coordinators. Mr. Robertson the world. He noted that this year Indian cotton He said that the program improved productiv- noted that demo plots reach 20,000 farmers di- growers face a crisis because of a price collapse ity, reduced production cost, increased profi t- rectly, teaching by doing and is accessible to all, similar to 2001, following which Appachi cot- ability of cotton cultivation in the project areas. allowing them to adopt techniques and educa- ton designed a program for small farmers called He noted that although yields have not risen in tion. He described the socioeconomic impact of Appachi Formula for Integrated Cotton Contract Guntur, Andhra Pradesh, the number of insec- a ginning investment of $861,000 as facilitating 34 NOVEMBER-DECEMBER 2004 the employment of 650 people directly and 1,800 domestic Rural Development Fund for small and in January 2004 the Philippine Department of people indirectly, and producing a main source medium producers to fi nance the purchase of Agriculture approved a 6 year development of cash income for 78,000 farmers. He said that inputs interest free. He noted that in Formosa agenda under which credit for cotton produc- main cash expenditures included school fees and province there are 8,000 medium and 1,300 tion is facilitated by a central merchandizing health care bills allowing increased access to small producers and provincial government and processing unit (CPMU), a privately run these services. He noted that the investments had fi nances up to 50 hectares at the promotional and well capitalized company, which will also an impact on the environment as cotton replaced interest rate of 4%. He also described a program work to maximize the autonomy of farmers in rice and charcoal production and provided im- of provincial government support provided to production ventures. He said that the approved proved adult education and agronomic practices 2,800 growers in Santiago del Estero, with pri- agenda is aimed at establishing an effi cient sys- for all crops. He praised the government’s sup- ority support in input purchase, fi nancing, and tem to elevate the quality of technical assistance port for the CDO on the ginner’s leadership in technical assistance provided to farmers planting to producers, where CODA, LGUs and, eventu- providing inputs, education and training to small no more than 10 hectares. Mr. Nicora described ally, the Integrators will play an increasing role. farmers. Mr. Robertson’s report is a statement the National Cotton Project in Argentina aimed Mr. Gilan concluded that cotton farmers call for of the meeting. at improving competitiveness and sustainabil- a support system that is dynamic and receptive ity of cotton production and contributing to to their needs and aspirations, for better access The delegate of PAKISTAN asked Mr. Robert- technological, socioeconomic and enterprise to resources and services for a higher profi t, and son to explain how the era of Amin caused the development, biotechnology, integrated crop for an effi cient input supply system. Mr. Gilan’s destruction of cotton production in Uganda. management and improvement of quality of report is a statement of the meeting. Mr. Robertson explained that because Amin ex- lint and seed, economic, and market analysis The CHAIR introduced Dr. Andre Katary of pelled Asian investors in the ginning industry. He and dissemination of information. Mr. Nicora’s Center for Agricultural Research of Cotton and said while most cooperatives were not effi cient presentation is a statement of the meeting. Fibers of Benin. Mr. Katary reported that cotton and delaying making cash payments to farmers, The CHAIR introduced Mr. Isidor Gilan of the is the second most important crop in Benin after which discouraging cotton production. Philippines to present a report on strengthening palm oil contributing 13% of GDP and up to 90% The delegate of SUDAN asked presenters to the input supply chain to small producers. Mr. of export earnings cotton provides incomes to 3 explain how the input needs of farmers are esti- Gilan reported that in general, Filipino cotton million people. He noted that the marketing of mated how repayment of the loans is guaranteed, producers are small farm holders tilling between inputs is conducted by national private compa- and how debts are collected. a quarter of a hectare and two hectares. He said nies working in each area and providing inputs The delegate of INDIA explained that a group of behind the industry are three potent forces work- and credit to farmers under bank guarantees. He 30-40 farmers is receiving credit and is respon- ing in synergy with one common goal – the ad- said that prices for inputs are set by negotiations sible for loan repayments even if individuals vancement of the cotton sector: the private sector with commissions on cotton inputs approved in the group default. He said and the group of focusing on matters concerning credit, inputs, by the government. Mr. Katary noted that the farmers makes decisions on input purchase and ginning, marketing and logistics; the govern- government is concerned with quality, delivery, fi nancing by consensus. ment develops technologies, extend technical environmental impact and disputes about inputs. assistance, training and industry promotion, fa- He reported that farmers are faced with delays Mr. Robertson added that unpaid loans are rais- cilitating credit and ginning; and the rural sector in delivery of inputs affecting yields, increasing ing the cost of operation. undertaking seed-cotton production. He said that cost of inputs and late payments for seed cotton Representative of the Asian Development Bank there are four ingredients, namely, credit, input, to farmers. Dr. Katary noted the signifi cance of asked Mr. Robertson if North Bukedi Company production technology and technical assistance national regulation and security measures related is the only provider of services in the region interlinked with one another to create a system to biotech cotton at the recommendation of FAO how is it possible to safeguard them from high called the input supply chain, where the major to limit use of GMO cotton in Africa for fi ve input prices. source of credit for cotton are the government years. He referred to the WTO council decision fi nancing institutions (GFIs) and production of August 1, 2004 on the importance of cotton Mr. Robertson explained that there are several credit is available under an agreement between to the least developed countries and the need ginners in the region, which provide these ser- the GFI, private sector, and the Cotton Develop- for a long-term reform aimed at achieving an vices, and there is enough competition in other ment Administration (CODA). Mr. Gilan noted agreement on agriculture, elimination of export areas of Uganda. that loan processing is facilitated by CODA and subsidies and an establishment of a fair trade sys- The delegate of the USA asked Mr. Robertson the private sector through the Integrator. Nev- tem. He concluded that the Benin cotton industry how initial fi nancing for demonstration plots ertheless, the current credit system is faced with faces today one of the greatest crises in history was secured. diffi culties, namely loans are delayed, having because of low international cotton prices and Mr. Robertson explained that a national or- repercussions on production activities. He said the increased cost of agricultural inputs. He said ganization funded by the USAID played an that the Integrator provides a bridge-fi nancing there is an urgent need for international market important role. He added that a partnership be- program, which advances material inputs to reforms and agreements. Dr. Katary’s presenta- tween the National Government Organizations farmers within its area of coverage. Mr. Gilan tion is a statement of the meeting. indicated that the complex portion of the cotton (NGO) and private banks was established with Dr. Basu of CCI commented that the interest of production technology is the concept of Inte- ginners playing the intermediary role to allow 14% on loans provided by government fi nancial grated Pest Management (IPM) and over the small holder-farmers through groups an access institutions in the Philippines seems very high. years, there had been a consistently low adoption to input credit. He noted that in India, the National Agricultural rate of the technology by farmers because of the Bank for Rural Development (NABARD) pro- The CHAIR introduced Mr. Amadeo Nicora, complex nature of the technology. He reported vides credit of Rs.4,000 (US$ 100) per acre to Vice President of the National Institute for that technical assistance covers the delivery cotton farmers with low interest of 6%.However Agricultural Technology of Argentina to make of extension support, education and training there is diffi culty in getting back loan amounts. a presentation on strengthening the input supply services for cotton farmers and is delivered He said that under the CCI’s contract farming chain to small producers. Mr. Nicora reported by CODA, Integrator and Local Government program the input supplier provides inputs at that 12,000 small and 6,000 large and medium Units (LGU). However, the quality of technical concessional rate for the benefi t of the farmer. producers of cotton in Chaco province use the assistance is not suffi cient. Mr. Gilan said that PROCEEDINGS OF THE 63RD PLENARY MEETING 35

The delegate of the USA asked Mr. Katary to N. P. Gumede of South Africa asked if there is Integrator and local management units provide elaborate on the moratorium he mentioned by any accurate data regarding the size of land of extension services and assistance to farmers and the FAO on GMO cotton for Africa. the small holder farming community in the Phil- help to avoid overuse of inputs. ippines and who is helping farmers to measure Mr. Katary explained that the moratorium was The CHAIR summarized the presentations their land in order to avoid overuse of inputs, announced by the FAO for 5 years in 2002 in and underlined the positive experiences with including land preparation. order to research fully all the affects of using contract farming serving to increase profit- the GMO products and published information Dr. Orpia of the Philippines explained that ability and incomes of smallholder farmers. on this decision is available. technical assistant from the government the He thanked the presenters and adjourned the session at 3:15pm. Fifth Open Session

Facilitating Adoption of Best Agronomic Practices by Small Holders

9:00 AM, Wednesday December 1, 2004 use programs and produced a handbook for the more of the various systems could fi t in South Mr. S.A. Patil in the Chair sustainable control of key pests. The project also Africa. Mr. Russell said Sourth Africa should produced kits for detection of resistance and draw from experience in an organized fashion The CHAIR opened the session and introduced insecticide identifi cation. The various compo- for East and Southern Africa. In response to a Mr. Derek Russell, Natural Resources Institute, nents of the project are being implemented by question regarding the number of sprays for United Kingdom. Mr. Russell said that 63 cotton the government of India in small villages in 11 sucking insects with biotech cotton, Mr. Russell producing countries worldwide are developing states and 28 districts, accounting for 80% of said that the number of sprays depends on the countries, which account for 75% of world pro- pesticide use in the country. In 2004 there were susceptibility of the germplasm, some require 3 duction, and that if subsidies decline due too 350 villages in the program with 47,500 farm- to 4 application and some others less. the success of negotiations at the WTO more ers. As a result of the project, there was a 50% developing countries will be able to start pro- The delegate of BURKINA FASO congratulated reduction in insecticide application, decline in ducing cotton, making production practices for Mr. Russell for his informative presentation, resistance, increases in yields, and increases in small holders more important. Pests are specifi c mentioned that similar inter-country resistance the net income of farmers. Additionally, there to countries and regions within a country, but management programs exist in West Africa and has been an impact on benefi cial insects with a the main insect groups are constant. Despite some of them are in progress, and asked for more 62% to 85% removal of pressure, and the human the uniformity of the pest groups, the cost of details regarding the kits designed in India and health impact has been very positive with the controlling them varies from 3% to 30% of the the origin of the FFS. Mr. Russell said that the removal of at least 75% of the potential health fi nal value of raw cotton. FFS concept of season-ong training of farmers hazards from the fi eld. on experimental plots was fi rst successful in rice In Uganda, there has been a series of field China (Mainland) provided another model. In the and expanded to cotton, and that at a workshop demonstrations to farmers on good agronomy 1990s, Chinese farmers sprayed over 20 times next week a fully applicable kit will be demon- and pest management practices. The Cotton per season for pest control, and the introduc- strated in Burkina Faso. Development Organization (CDO) organizes tion of biotech cotton varieties in the late 1990s, a national supply of materials, suggests mini- The CHAIR introduced Mr. Mario Rodriguez which today represent over 50% of planted area mum prices, and supports the National Train- Rico, President of the Coalcesar Cooperative in in the country, caused a decline of 60% to 80% ing Center. The National Agricultural Research Colombia. Mr. Rodriguez said that 55,400 tons in insecticide use. Today as a result of the intro- Organization undertakes research and training. of cotton were produced in Colombia on 44,000 duction of biotech cotton, yields and net profi ts With international donor support, extension ac- hectares, that Colombia has two crops in differ- are higher. Mr. Russell mentioned that Farmer tivities and training materials are developed. As a ent regions allowing the country to have a supply Field Schools (FFS) were an effi cient system result of these programs, insecticide applications of cotton throughout the year, that cotton is ro- for the development of farmer understanding have increased and yields have increased from tated with other crops such as corn, sorghum, soy and management of cotton ecosystems, that at less than 500 kilograms to between 1.75 and and rice, and that 14.7% of the cotton area was the moment farmers in six Asian countries are 2.25 tons. Despite these gains, farmers are still planted to biotech cottons. Colombia has 7,372 trained in FFS, and that in 2003 the net profi t exposed to cotton price fl uctuation. This year cotton growers, and 55% of them cultivate in less of a FFS farmer was 2.2 times more that that of there have been 6,500 demonstrations, run by than 10 hectares and 25% in between 10 and 50 a non-FFS farmer. He mentioned that biotech 8 ginners, with the participation of over 90,000 hectares. The small farmer in Colombia has low cotton is working well for China (Mainland), farmers. Uganda has now in place a system to levels of education, but they have a high level of but that IPM programs that include FFS could achieve high productivity. experience managing cotton cultivation, as they be use effectively. The three models have in belong to families that have cultivated cotton for A different model is in place in India, where common that they bypassed the formal exten- generations. In Colombia every grower must be cotton takes 40% of the insecticide used in the sion services and have had successful results. associated with a cooperative or another entity, in country. The Indian Council for Agricultural Finally, Mr. Russell said that the CFC project is many cases founded by the growers themselves. Research has worked on the issue of insecticide coming to an end, and that the results could be A confederation of cotton entities, Conalgodón, use since the early 1990s, with support from the disseminated outside the project region in East groups 84% of the area dedicated to cotton in United Kingdom, and now the country benefi ts and West Africa. Mr. Russell’s report is a state- Colombia. The cotton sector has very positive from a regional project fi nanced by the CFC. ment of the meeting. policy tools at the disposal of growers, such The project, which includes China (Mainland) The CHAIR opened the fl oor and recognized the as two Private Savings Funds, one for income and Pakistan, is designed to understand the role delegate of SOUTH AFRICA, who asked if there stabilization and another for the development of of chemicals, has developed rational pesticide was any interest in identifying whether one or research programs, transference of technology 36 NOVEMBER-DECEMBER 2004 and training. The funds are fi nanced with contri- of producing one pound of cotton declined from tion to imports of fertilizers, as it did between butions from growers equivalent to 0.5% of the 80 U.S. cents in 1997 to 58 cent today. Mr. Rico’s 1995/96 and 2003/04. Dr. Ali’s presentation is value of cotton fi ber and 1% of the seed value. presentation is a statement of the meeting. a statement of the meeting. Cotton activities are regulated by the Ministry The CHAIR opened the fl oor for comments The CHAIR opened the fl oor for questions and of Agriculture, which regulates almost every and questions, and an observer from India comments and in response to a question regard- aspect of cotton cultivation. The Colombian commented that the higher yields achieved by ing subsidies, Dr. Ali said that SCC is a private Agricultural Research Corporation provides small farmers must have been the result of the company with no government subsidies, pro- access to knowledge and technology, and the association of growers, that in India there is a vides for acquisition of inputs, and that farmers National Training Service provides training large difference between a farmer with 2 hectares receive only indirect support through the irriga- and technology transference. There are several and a farmer with 9 hectares and fertilized doses tion schemes. In response to a question regarding strategies for transference and training. Training are not respected. He also said that IPM could the ownership of land, Dr. Ali said that land is and transference to small producers is initiated reduce use of pesticide even though yields do not transmitted from generation to generation, and in regional associations, which provide quality increase, and that intercropping practices can be there is no limit to it as long as the land has been inputs and integrated services to affi liated grow- benefi cial in South India and contract farming is allocated. In response to a comment regarding ers. Government entities, along with academic a way to improve yields in India. the absence of trees in the cotton areas, Dr. Ali institutions design and execute programs and said that the Gezira scheme has more than 2 mil- scientifi c and technical cooperation agreements The CHAIR recognized Mr. Abdin Mohamed lion acres with gravity –fed irrigation, and is well to improve the agronomic practices of cotton cul- Ali from the Sudan Cotton Company in Sudan. controlled and well managed. That in order to tivation. Since 1998, Conalgodón and the Cotton The Secretary General indicated that the topic of protect the environment, trees are allowed only Development Fund, one of the Private Savings Dr. Ali presentation was related to strengthening in certain areas, and that a rotation of crops are Funds, initiated a program to produce cotton ef- the input supply chain to small holders, which used to maintain fertility of the land. fi ciently, reducing cost, increasing productivity was the topic of the previous open session. Dr. and improving fi ber quality. One limiting factor Ali said that Sudan is primarily an agricultural The CHAIR recognized Dr. Ashgar Heydari was pest control, specifi cally the boll weevil. country, and that cotton is the fi rst crop, second from the Agricultural Research and Education The program initiated control and eradication to oil in importance to the country’s economy. Organization of Iran. Dr. Heydari said that Iran campaign that resulted in a substantial reduc- Cotton absorbs more than 13% of the total has an area of 1.6 million square kilometers, of tion of pesticide use. Other parts of the program population of the country. About 95% of cotton which cotton utilizes 200,000 hectares, yields obtained signifi cant reductions in the cost of soil production is located in state-managed large ir- are 1,000 kilograms per hectare, and pests are preparation and weed management. Given that rigated schemes, under a tripartite arrangement the most important limitation to yields. In order a large proportion of the cotton growers in between state that provides land and water, to manage insects, pathogens and weeds with Colombia are small holders, the technology the scheme management that organized basic minimum environmental risk, a national IPM transference and training programs were de- cultivation operations and tenants who carry project was designed in 2000 and implemented signed accordingly from the beginning. Firstly, out the operations in allocated plots that vary in 2001 under the leadership of the Plants, Pests, the organization of groups of growers in micro between 10 and 80 acres. The largest scheme and Diseases Research Institute. The project regions, with the support of the national training is the Gezira, divided into 18 groups, each with included four steps. A fi rst step included the and research agencies, was promoted. Second, 114 subdivisions. There is a farmers union each identifi cation of research gap, and concluded agricultural committees for technological devel- subdivision, group, and scheme and a national that previous research lacked organization and opment were organized with the goal that the union. The Sudan Cotton Company (SCC) was concentrated on pesticide use. The second step, growers together with researches could develop sold to the farmers union in 1993, and is now carried out between 2002 and 2004, was to fi ll priorities for research. Third, an intensive train- fully owned by the farmers unions, the National the gaps in research, and 30 research projects ing program was developed in pilot farms, with Pension Fund, and the Farmer’s Commercial and activities were executed in the mayor cotton emphasis in learning by direct example, that is Bank. SCC is responsible for exporting 95% areas of the country, with priority given to non- when a grower leader who has credibility and of the exportable supply, and facilitates imports chemical control methods. All possible avail- knows the language utilized in the community of inputs. Before 1992, fertilizer requirements able strategies for cotton pests were used, and is the leader of the training program, rather than were obtained through foreign grants and dona- key pests and biological control method were the researcher who has probably never cultivated tions by international organizations and friendly given priority. Many benefi cial agents, including cotton. A technology package was developed that countries, mainly in Europe, and other inputs predators, parasitoids, insects, and microbial an- included specifi c recommendations. After just were obtained through foreign loans. Between tagonists were identifi ed and successfully tested six years the experience shows that on their own 1992-1994 the Sudanese government had to step in the fi eld. Several agricultural practices were initiative the groups of farmers are associating in to supply inputs, after grant and loans were also applied, and some new and environmentally themselves forming enterprises to trade their seized, and since 1995 a national committee re- safer pesticides were tested. The third step, the products, buy their inputs and have access to sponsible for providing inputs was established. integration phase of the project has been pre- credit. As a result of these schemes, now there is As a member of the national committee, the SCC pared and will begin in 2005. IPM research ex- no difference in productivity between small and controls exports of cotton, communicates input periments will be conducted combining different large cotton holders, and the cost of production requirements to the national Committee, and control methods. Finally, Mr. Heydari said that is lower through harvesting, as manual labor prepares international supply tenders. As SCC the fourth step will prepare and deliver to grow- originates in the family and is highly effi cient. sells cotton the proceedings are kept in an escrow ers an IPM package. It is expected that the IPM Transportation, ginning, and commercialization account, payments to creditors are made and the package will include pest damage, pesticide use costs are more expensive for small holders, due balance is given to farmers. Finally, Dr. Ali said and environmental risk. Dr. Heydari’s presenta- to the absence of economies of scale. Finally Mr. that the total value of input used by growers tion is a statement of the meeting. between 1993/94 and 2003/04 was US$518 Rodriguez said that as a result of the program, The CHAIR noted that there was no time for million, and that in 2003/04 the company was quality is uniform with 1” 1/8 inches in length, questions or comments and adjourned the ses- allowed to import spare parts for gins, in addi- 30 grams/tes resistance, 4.5 micronaire, over sion at 10:40am. 80% uniformity, grade SM, and the average cost PROCEEDINGS OF THE 63RD PLENARY MEETING 37

Sixth Open Session

How to Make Cotton Price Risk Management Effective Globally

11:00 AM, Wednesday December 1, 2004 correlated with international prices leaving room in basis of different growths over time conclud- Mr. Dhiren Sheth in the Chair for potential new exchange in other countries. ing that there is a good correlation between NY However between 1970 and 1990 many futures price and Cotlook A Index, Australian, Central The CHAIR noted that it is important to make contracts ceased trading. He described key fac- Asian, Greek, Brazil and other growths. As an price risk management effective globally and tors necessary for a successful futures market, example he noted that there are three strategies this session will provide an opportunity to hear including a suffi ciently large supply and demand for a mill committed to produce yarn 6 month out reports from four distinguished speakers who for cotton: free determination of prices; large but not yet bought cotton: do nothing, wait and are experts in this fi eld. The CHAIR introduced fl uctuations of prices; reasonably well func- hope for lower prices; fi x prices now and hope Ms. Julie Dana from the World Bank to make a tioning spot market; well standardized cotton; that prices do not go down; or to use options to presentation on the International Task Force for support from commercial interests; large group protect against an increase in price and to benefi t Commodity Risk Management (CRMG). Ms. of speculators; well developed infrastructure of from a decline in price. Mr. Barry recommends, Dana reported that CRMG was established in the market chain and regulatory framework. Mr. if a mill feels price could rise to fi x cotton price 1999 composed of international organizations, Rutten analyzed recent cotton futures exchange and to buy a put option. He illustrated historical donors, researches, practitioners and develop- initiatives in India, China (Mainland), Brazil, data based on the earlier mentioned three strate- ing country clients with goals to bridge the gap Colombia, Egypt, Turkey, Pakistan and Nigeria. gies going back 10 years, which show that in six between commodity producers, intermediaries He reported that there are different degrees of years it was better to fi x prices early; in 4 years in developing countries and risk management potential for these initiatives. At this time most it was better to wait and fi x later; but averaging markets, and to enable growth of a commercially of these markets have not achieved suffi cient all ten years it was more profi table to use a put viable commodity risk management business in futures volumes, except for China (Mainland) option. Mr. Barry’s presentation is a statement developing countries. She said that CRMG pro- where large volumes of trade and liberaliza- of the meeting. vides training/education to local organizations tion of the banking sector made futures trading on evaluation and implementation of risk man- The CHAIR introduced Mr. Didier Mercier of essential and led to a fast rise in futures trade agement strategies, including use of forward sell- Copaco, France to present a report on cotton risk volumes. Mr. Rutten said that commodity ing, physical cotton price formulas incorporating management, the case of the African cotton in exchanges could help market participants to price protection, futures, options and swaps, the French Franc Zone. Mr. Mercier reported achieve competitive pricing, optimize physical lending linked to price hedge instruments. She that in many of the CFA zone countries price marketing, transfer risks and facilitate fi nancing. noted that put option contracts are particularly risk problem is addressed at the seed-cotton pro- He said that exchanges have to be cost effective well suited to developing country producers and ducer level by setting guaranteed, often negoti- and new technological developments help to re- especially ginners. Ms. Dana noted that CRMG ated, purchase prices before planting, insulating duce operational costs even with small trading work experiences indicate that bridging the gap producers from variations in international prices volumes. Mr. Rutten concluded that in quite a to the international market is feasible if correct during the season. He noted that the system few countries volumes of cotton trade are large market entry points and quantifi cation of price leaves cotton companies with the risk of market enough, local conditions are suffi ciently differ- risk are determined, local banks are involved as prices falling below the guaranteed price and the ent from other markets and there are enough market intermediaries and private sector price risk of change in the currency exchange rate. Mr. players to support a futures market, and new providers, brokers, traders, merchants and ex- Mercier indicated that stabilization funds were arbitrage opportunities will likely drive global porters participate. She indicated that hedging used in the past by cotton companies to deal trade volumes up. Mr. Rutten’s presentation is business volumes may grow slowly, but capac- with the problem of price and exchange rate risk. a statement of the meeting. ity is permanent and all actors benefi t when the However, the funds were mostly discontinued at sector is strong. Ms. Dana said that technical The CHAIR introduced Mr. Tim Barry, vice the insistence of international fi nancial organi- assistance needs, and price risk management president of the New York Board of Trade zations, but even funds maintained by some of needs are very high and acute for cotton sector (NYBOT) to present a report on price risk the companies are not suffi cient to fi ll the gap because mechanisms to provide inputs are often management. Mr. Barry reported that NYBOT in prices with the U.S. dollar decline against the linked to an initial purchase price. She reported was organized as a result of a merger of the euro in 2004/05. He expressed a regret that an that CRMG facilitated purchase of fi rst cotton Coffee, Sugar & Cocoa Exchange and the New initiative by the CFA zone cotton companies to put options for ginners in Tanzania and Uganda York Cotton Exchange (NYCE) in 1998, and the arrange for a mutual insurance against price and and also works in India, Burkina Faso and Brazil. NYCE was trading cotton futures since 1870. He currency change risks did not materialize due to Ms. Dana reported that CRMG signed an agree- said that the exchange serves two purposes: price high cost and was not supported by international ment with the Common Fund for Commodities discovery (a passive use) and risk shifting or fi nancial organizations. Mr. Mercier noted that, to provide funding for price risk management hedging (active use). He explained that the need faced with volatility in cotton prices, African and work will start in January 2005 with a focus to hedge stems from volatility of cotton prices cotton companies adopt a cautious sales policy on coffee and cotton in Kenya, Tanzania and and illustrated historical short and long-term of regular presence on the market with the aim at Uganda. Ms. Dana’s presentation is a statement volatile price trends on slides, where prices fell receiving an average season price and avoiding of the meeting. from 117 cents per pound in 1995 to 27 cents per a risk of selling the bulk of cotton at the lowest pound in 2001. Mr. Barry explained that because season price. He reported that another measure The CHAIR introduced Mr. Lamon Rutten of the raw material cost is 50% to 85% of mill costs, to deal with price risk has been implemented UNCTAD to present a report on the role of mill profi tability depends on better management recently in cotton sales contracts and represents a local exchanges in enhancing access to cotton of raw material costs, but mills need access to variety of different schedules to fi x prices based price risk management. Mr. Rutten reported that basis risk insurance, where basis is a difference on delivery periods. Mr. Mercier noted that these the leading cotton futures exchange, New York in price between selected growth and New York measures produced positive results in the past. Board of trade (NYBOT), has good liquidity, price. He displayed charts illustrating changes However, the current weakness of cotton prices worldwide use, but prices are not completely 38 NOVEMBER-DECEMBER 2004 and the U.S. dollar present a large challenge and Euro, which is appreciating to U.S. dollar. 1. Accurate specifi cation of the demand func- require additional measures to increase competition; The CHAIR asked Mr. Barry if the NYBOT has tiveness of cotton economies in the CFA zone. any plans to introduce an ELS cotton contract. 2. How to derive price demand function; He said that African cotton merchants attempting Mr. Barry answered that the question was raised to hedge price and currency exchange risks face 3. How to shape the demand function, as elastic, in the past but it is considered that there are not a challenge of basis risk and timely execution semi-elastic or inelastic; suffi cient volumes of ELS cotton traded for hav- of contracts by sellers and buyers. He suggested ing a futures contract. He also added to the pre- 4. An accurate specifi cation of exogenous and that the current privatization process in Africa vious question that electronic trading platforms endogenous variables are inserted in the demand and the market situation provide a challenge to couldn’t offer options contracts, which are traded function; look for solutions, possibly as a combination of on open outcry platforms in large volumes. measures, including stabilization funds, insur- 5. In case of an multi-equation model it has ance and market hedges. Mr. Mercier’s report The CHAIR asked Ms. Dana to indicate the to isolate any multi-coliniarity that may exist is a statement of the meeting. countries in West Africa where the CRMG between the independent variables; plans to work actively. Ms. Dana answered The CHAIR asked Mr. Barry to elaborate on 6. Depend mainly on quadrative or logarith- that work in West Africa is at a very prelimi- reasons of failure of the world contract launched mic or semi-logarithmic procedures of analyses nary stage and an immediate trip is planned to at the NYCE in 1992. Mr. Barry explained that because depending on linear techniques leads Burkina Faso together with representatives of though many believed there were good reasons always to misleading results. EU, French Development Agency and ICAC to have an instrument like the Cotlook A index to assess the interest of these countries in price The delegate of INDIA asked Mr. Barry how contract very few people traded it. He said that management tools. in the USA a confl ict or overlap in regulation there were two reasons for the failure, one is that by the commodity futures regulator and the it took a very long time to approve the contract The delegate of ARGENTINA thanked the very financial market regulator is overcome. Mr. by the U.S. regulators, but when it was approved knowledgeable experts for their presentations Barry explained that in the USA there is a very there was a very close correlation between the and stated that price risk management is not a clear distinction on which regulator regulates NY price and the Cotlook A Index reducing the new issue on our agenda, however a solution to a certain market and the clarity is important to need for another hedging instrument. He said minimize price risk has not been found and there the market. that a second reason was that the Cotlook A is large market risks associated with increased The delegate BRAZIL asked that because grow- Index contract was a cash contract and did not price volatility. He noted that subsidies remain ers are remotely located in relation to futures have a delivery option, which is necessary for a a market distorting factor leading to increasing markets, face currency and basis risk, are the commodity contract to succeed. supply and stocks of cotton, lower prices in New York and international markets, higher volatility bank derivatives a solution for the growers. Mr. The CHAIR asked Mr. Rutten and Mr. Barry and it is very diffi cult to fi nd solutions in price Rutten answered that it have to be local banks to compare prospects of an open outcry versus risk management for the least developed coun- to provide derivatives to grower but in many electronic trade exchange systems. Mr. Rutten tries when distorting policies exist. He asked to countries regulation prevents banks from doing said that the cost of open outcry exchanges is explain what will be the market effect of prices that, but in principal the possibility exists. lower compared to electronic platforms; how- falling bellow the loan rate set by the U.S. gov- The CHAIR asked if NYBOT would be willing ever volumes are more diffi cult to build up. He ernment cotton program. Mr. Barry replied that to share its expertise with other countries trying said that all of the European exchanges went the market takes into account current supply and to establish futures markets. Mr. Barry replied electronic but New York and Chicago remain demand fundamentals and that the quantity un- that NYBOT is eager to share its experiences open outcry platforms. Mr. Barry said that NY- der the loan has no medium or long-term effect. with other countries. BOT has no plans to switch to electronic trading He said that the loan rate couldn’t provide a fl oor and that the cost of the open outcry is higher for The CHAIR asked Mr. Rutten to comment on for the market price as evidenced by history. services provided. However liquidity is higher reasons for successful exchange operation in too, which allows the platform to successfully The delegate of TURKEY noted that use of China (Mainland) and a moderate success of compete, for example with electronic platforms price risk management tools globally might exchanges in India. Mr. Rutten explained that for coffee and cocoa in London. be diffi cult due to basis risk, exchange risk and reasons for limited success of cotton futures government policies. He asked if it would be markets in India include price interventionist The CHAIR asked Ms. Dana how countries possible for producers in developing countries policies by the government, a memory of the like China (Mainland), India, Turkey, Pakistan to obtain price risk management tools from lo- past prohibitive actions by the government and and Brazil fi t into CRMG activities. Ms. Dana cal banks. Ms. Dana said that it is diffi cult to a time needed to acquire the necessary business replied that training and education activities of tailor risk management tools for smallholder practices. He noted that in China (Mainland) the CRMG are open to all countries. farmers and focus is placed on tailoring them success was assured by the use of newest tech- The CHAIR asked Mr. Mercier about his ex- for ginners as the most risk affected entities. nology, substantial fi nancial resources and high perience in hedging cotton in such countries However ways to provide protection for farm- demand for price discovery and hedging. as Mozambique, Madagascar and Uzbekistan. ers are under examination, and local banks have The session was adjourned at 12:40pm. Mr. Mercier replied that it easier to trade and to play role in it. hedge cotton from Madagascar and Mozambique [The Seventh and Eighth Open Sessions can Dr. Wagdy Hendy of Egypt commented that compared with the CFA franc zone because cur- be located under the Report of the Chair of the there are six elements necessary for accurate rencies in these countries are not pegged to the Committee on Cotton Production Research on price forecasting: page 44]. PROCEEDINGS OF THE 63RD PLENARY MEETING 39

Ninth Open Session

Improvement of Cotton Trading Practices

1:45 PM, Thursday December 2, 2004 The CHAIR introduced Mr. Neal Gillen to make contract sanctity and adherence to a rules-based Mr. Suresh Kotak in the Chair a presentation on the Responsibility of Govern- system of trade that has as its core the resolu- ments for the Enforcements of Arbitral Awards. tion of disputes by impartial industry arbitration The CHAIR noted that the topic of improvement Mr. Gillen reported that participation in the systems as well as introducing and applying self- of cotton trading practices is of great interest cotton supply trade network carries with it the policing systems. That process is now underway and there are several aspects of the issue such obligation to adhere to a set of well-established in China (Mainland), the largest of the emerging as the need to raise awareness of the importance principles grounded on the assumption that the markets. Mr. Gillen’s presentation is a statement of good trading practices (GTP), raise the role corresponding party will honor his contract, re- of the meeting. of governments in promotion of GTP and to solve disputes through amicable negotiations, or strengthen the working of the world cotton The CHAIR introduced Mr. Rajaram Jaipuria submit the dispute to recognized and impartial market in an effective way. to present a report on Improvement of Cotton industry arbitration fora. He said that in recent Trading Practices – Prospects and Problems. The CHAIR introduced Mr. Dorcen Walters, years, the patterns of trade have changed as tex- Mr. Jaipuria reported about changing patterns vice chairman of the Committee for Interna- tile production moved from the developed to the in international trade where textile production tional Cooperation between Cotton Associa- developing world where a minority has not read- is shifting to developing countries, many of tions (CICCA). Mr. Walters reported that CICCA ily accepted this essential ethic of trade and has which are dependant on cotton imports, while comprises 14 associations that meet on a regular deemed a price swing against their position as developed countries will remain major suppliers basis to discuss and mediate on issues that affect reason to abrogate their contractual obligations of raw cotton. He noted that the signifi cance of the international cotton trade. He said that in and to ignore arbitration awards, and by doing international trade in cotton will be rising, but 2001, when prices declined by more than 50% so add signifi cantly to the costs of doing busi- there are serious issues in cotton trade, with ex- and a number of contract defaults, including by ness, and jeopardizes a well-established system porters and arbitration bodies complaining that Indian companies were numerous, CICCA fully of trade. He noted that it is imperative to assure arbitration awards are rarely being complied endorsed the good trading practice initiative for- that defaulting participants in the market do not with and the sanctity of contracts is not being mulated by the Liverpool Cotton Association receive a competitive edge over their colleagues respected by many importers, while importers, with the purpose of making it extremely diffi cult who honor their contractual obligations. Mr. Gil- on the other hand, feel that exporters refuse to for defaulters to have access to the cotton trade len stated essential provisions of the U.N. 1958 include in contracts detailed specifi cations and or to sell their product to reputable international New York Convention on the recognition and stipulations and later take refuge under these in- traders. He reported that it was decided that a enforcement of Foreign Arbitral Awards, which fi rmities to escape liability, in the event of any member organization of CICCA, if found guilty was ratifi ed by 134 countries and not ratifi ed default or claims. Mr. Jaipuria indicated that of trading with somebody on the default list, by only four ICAC member countries (Pakistan, cotton exporters are few in number and huge in could face a number of punishments, including Sudan, Togo, and Chad). He informed that cur- size, whereas importers are often thousands of expulsion from their association. Mr. Walters rently there are 268 parties from 55 countries small spinners and after years of futile efforts to said that the initiative worked and is good for with 288 defaults listed by CICCA, of which convince major cotton suppliers and arbitration everyone because it builds a safe marketplace. 222 awards totaling $89.3 million were issued bodies that trading conditions should take into He said that CICCA applauds the initiative by by the LCA. Mr. Gillen listed countries with account the genuine concerns of buyers, mills in the Liverpool Cotton Association to change their the most defaults, including India, Bangladesh, India have requested Government that import of name to the International Cotton Association Pakistan, Brazil, Turkey, Mexico and Indonesia cotton into the country may be permitted only with the ultimate aim to have one set of rules accounting for 60% of all defaults. He mentioned on condition that any arbitration arising from the for international cotton trade. Mr. Walters asked factors contributing to defaults, such as cultural transaction will be handled by Indian Council of why the Indian community constantly wish to and ethical issues ingrained in business practices, Arbitration (ICA), which is an internationally have mandatory Indian arbitration and urged restrictive currency regulations that inhibit hedg- reputed professional arbitration body with no the Indian community to look very seriously at ing, lack of familiarity with international trad- affi liation with either cotton or textile sectors. this question. He suggested that the growth of ing rules and arbitration procedures, along with He proposed several measures that are easy to biotech cotton planting could make India a net consequences of failing to comply with them. implement and equitable to both suppliers and exporter of cotton, and Indian only arbitration Mr. Gillen noted that 70% of cotton traded in the buyers: the arbitration body should prescribe a could disadvantage its farming community’s export market is sold pursuant to LCA Rules and Standard Cotton Contract Form (SCCF) which ability to sell internationally. Mr. Walters af- the industry decided it was in the best interests should include all elements on which disputes fi rmed that the good trade practices initiative of buyers and sellers to trade under a single set normally arise; it should be binding on both sup- endorsed by CICCA is fair and equitable, pro- of common equitable rules. Mr. Gillen explained pliers and buyers to ensure that every column in moting honest trade in textiles and should only that the arbitration award is but the penultimate the SCCF is fi lled up in full; there should be no come into force when the relationship between a step in the dispute resolution process, the fi nal differentiation in arbitration/administration fees supplier and a customer breaks down. On behalf step requires the prevailing party to enforce the between members and non-members of the arbi- of CICCA, he urged the Indian government to award by requesting payment, and if payment tration body (this is already the case with several look seriously again at this issue to realize that is not made on a timely basis the means that arbitration bodies including ICA); arbitrators CICCA and international trade are promoting a can be utilized to secure payment are negotia- should include professionals from all major ex- fair and equitable trade in raw cotton and this tion, enforcement and industry default lists. He porting and importing countries and there should initiative is supported by certain segments of the concluded that now that the problem areas be no stipulation that an arbitrator should neces- Indian textile community. Mr. Walters’ presenta- have been identifi ed, it is the responsibility of sarily be a member of the arbitration body (pan- tion is a statement of the meeting. the cotton industry to intensify its outreach and els of WTO’s Dispute Settlement Body always educational efforts in the emerging markets on 40 NOVEMBER-DECEMBER 2004 consist of professionals from outside the WTO, rect because every cotton that is sold has to be sion of the issues began in 1999, and though who do not represent any WTO members); there bought and both buying and selling are under some small progress was made it is necessary should be testing laboratories designated by the the same rules, so if the rules are biased they to agree in a short time on specifi cations of con- arbitration bodies in major exporting and import- would be biased also in favor of the original tracts. He referred to the fact that the number of ing countries, whose fi ndings should be binding seller of cotton. He welcomed new members to defaults rise when prices sharply decline. Mr. on arbitrators in disputes on quality; arbitration join this international movement for the good Gillen said that in India many mills have to pay awards should be ‘speaking orders’ and should future of cotton. Mr., Macdonald’s remarks are higher prices for cotton because of defaulters record and analyze all evidences and arguments a statement of the meeting. and it is necessary to sit down together to fi nd a presented before arbitrators, and the reasons for solution of the problem. An observer from India expressed support for the accepting or rejecting them should be part of the good trading practices initiative and confi dence The delegate of INDIA observed that the number recommendation of the arbitrators. Mr. Jaipuria’s that existing problems will be solved. However, of defaults grow as prices fall because of higher report is a statement of the meeting. he said solutions should be found in a reasonable risk when cotton prices are high. Mr. Gillen said The CHAIR invited Mr. Andrew Macdonald, period of time. that because prices are high it does not mean that President of the Liverpool Cotton Association it is all right to default on contract obligations. The delegate of TURKEY expressed full support to make a statement on behalf of LCA. Mr. for views and recommendations expressed by the The delegate of ARGENTINA suggested that the Macdonald said that he is making a statement speakers. He suggested that Mr. Gillen compare secretariat of the ICAC should update statistics as the last president of the LCA because the asso- the number of defaults to the volume of trading on defaults annually. ciation is changing its name to the International in countries concerned and also to apply cot- Cotton Association in a week and will have An observer from India said that negotiations ton-trading rules on yarn trade, because a large international board members with the objective to fi nd solutions to obstacles of achieving com- number of cotton defaults originate in the yarn to take away regionality and work together for monly agreed trading rules should be construc- market. The remarks of the delegate of Turkey the international good for cotton. He noted that tive and solutions will be found. are a statement of the meeting. ICA will respect national associations, with all A representative of UNCTAD made an obser- Mr. Gillen replied that he did not include more using similar rules, with perhaps additional rules vation that in a situation when a number of data in his presentation because of limited time. for specifi c cases. In this way, the ICA will form defaults are correlated with sharp changes in However the percentage of defaults in a certain a strong cohesive association to deter defaults prices, hedging should be a solution for the market makes little difference for a small pro- and make good trading practices a real goal. He defaults problem. noted that there are some markets still trying to ducer. He noted that regarding the rules for yarn maintain an unfair advantage by imposing their traders, yarn producers should get together and The CHAIR summarized the discussion and ob- rules. However, we need to adopt similar rules agree on rules similar to cotton. served that good trading practices are important for the cotton market and a process to fi nd solu- to be able to play on a level playing fi eld and The delegate of BRAZIL asked how far back tions to existing problems in contracting should stick together for the common good. He noted the data on defaulter goes in the presentation by be revitalized and should be constructive, while that it is not fair that the defaulter anywhere in Mr. Gillen and who the defaulters are. Mr. Gillen time is critical. He said that CICCA is doing a lot the world carries an advantage over the honest replied that the data he presented goes back to for promoting good trading practices but could seller or buyer by dodging his obligations. Mr. 1994, and most of the defaulters are mills and do more in uniting national cotton association Macdonald said that some claim that interna- buyers, not producers, except for a few cases. tional rules are biased in favor of the seller and for this task. The chair thanked presenters and therefore not fair, but this allegation is not cor- Mr. B.K. Patodia said that existing problems adjourned the meeting at 3:20pm. should be resolved quickly. He said that discus-

Tenth Open Session

Strategies for Cotton Demand Enhancement

10:00 AM, Friday December 3, 2004 durability and easy care. He commended the of the increase in world use during the most Mr. B.K. Patodia in the Chair work of the Cotton Gold Alliance for develop- recent fi ve years, amounting to approximately ing consumer demand in India. The remarks of 300,000 tons per year, was attributable to cotton The CHAIR emphasized the need to sustain Mr. Patodia are a statement of the meeting. research and promotion in the U.S. Mr. Valder- production by ensuring remunerative prices to rama cited statistics showing that expenditures growers with agronomic information to ensure The CHAIR introduced Mr. Carlos Valderrama, on research and promotion result in differential that quality cotton is provided. The Government Head Economist for the Secretariat to report on rates of growth in cotton consumption per capita of India has implemented programs and policies Cotton Promotion and Demand Growth. Mr. by region. Consumption growth has been great- to ensure adequate supply to the industry through Valderrama said lower prices have been the est in the USA and less in Europe and Japan imports or domestic supplies as needed. He said driving force behind demand growth during the during the last fi ve years. He said that the rela- that cotton faces tough competition from poly- last 6 years. However, non-price factors, such tive availability of cotton affects consumption, ester. He said the chemical fi ber industry spends as quality and diversity of uses, also affect de- and the elimination of quotas under the MFA is billions of US$ on research and development to mand. He noted that consumer preferences and boosting cotton demand growth. He said that the expand market share through research and de- the pace and direction of technology change can MFA phase-out was contributing 500,000 tons velopment, and he urged that the cotton industry be affected by promotion efforts. He noted that of increased cotton use each year. He forecast do the same. He noted that rising world income the pace of increase in world consumption rose that by 2010, cotton use will reach 25 million would stimulate demand growth. He said that by 2.6% per year during the last fi ve years and tons, and is expected to grow by 2.1% per year consumers prefer cotton, but that low-income reached 22 million tons last year. He said that during the next few years. consumers may choose blended products for research by the Secretariat indicates that 11% PROCEEDINGS OF THE 63RD PLENARY MEETING 41

The CHAIR thanked Mr. Valderrama for his service support. He said that implementation of is accurate and is included in each HVI shipped. remarks, noting that there was good news in an instrument testing system adds value to the He said that improvements in moisture measure- faster demand growth but bad news in loss of entire cotton production change, and he showed ments were expected. market share for cotton. that savings in Uzbekistan for instance could The delegate of INDIA said this session was save $200 million per year. He emphasized that The CHAIR introduced Mr. Mark Messura, vice the most important in the plenary. He suggested instrument testing is not just a single instrument, chair of the International Forum for Cotton Pro- that cotton yarn should also be promoted. He but requires a system of logistical support. He motion (IFCP). Mr. Messura noted that strong asked if the biodegradability of cotton could be said that he supports efforts to expand instrument demand for cotton products is a shared interest considered. testing of cotton, but said that he believes the for all connected to the world cotton industry. He optimum place to perform measurements are at The delegate of EGYPT expressed skepticism of said that the IFCP consists of 15 organizations the gin, rather than in laboratories. He described the effectiveness of cotton promotion activities from 13 countries. The members of the IFCP how gin-based instrument testing could benefi t and suggested that increased consumption in In- believe that building demand for cotton is crucial the cotton system by providing information to dia might be due to population or income growth. to the long-term health of the cotton industry. ginners to improve cotton quality, while lower- Mr. Collins agreed that a long-term commitment He said the organization provides information ing transportation costs. He showed a video of to promotion is required. But he said that small on consumer cotton promotion programs. He re- gin-based instrument testing. Mr. Ghorashi’s measures could give a sense of current direction. ported that the IFCP had conducted a three-day presentation is a statement of the meeting. He agreed that promotion does not account for workshop earlier this year. There are many effec- all the increase in consumption. Mr. Messura tive strategies of cotton consumer promotion that The CHAIR thanked Mr. Ghorashi of an inter- added that it is important to evaluate promotion can be conducted at very little cost. Mr. Messura esting and futuristic presentation. The CHAIR efforts. Results show that $1 of investment in said that 90% of the clothing sold in the USA is introduced Mr. David Collins to describe the promotion returns more than $3. Promotion can imported, and research shows that consumers Cotton Gold Alliance (CGA). He described the be extremely effective with positive returns. Mr. are not concerned with country of origin, but mechanics of the Cotton Gold Alliance program, Valderrama added that fi ber recognition can be they are interested in fi ber content. He said that what has been achieved and what the future changed within a year and is due to promotion promotion efforts are the best way to build con- holds. The notion of the CGA program is to activities. sumer demand, irrespective of prices and other provide fi ber awareness and differentiate cotton consideration. He explained that the role of the quality products in order to raise consumption. The delegate of the USA thanked the panel. He IFCP is to assist national cotton organizations to He provided statistics on per capita cotton and said that USDA is proud to be associated with conduct national demand enhancement efforts. polyester consumption in India and the USA, the CGA. He emphasized the need for demand He thanked IFCP members for their efforts and noting that cotton promotion efforts in the USA enhancement efforts and urged organizations to the ICAC for its support. His remarks are a state- clearly indicate growing demand. He described join the IFCP. ment of the meeting. the strategy of the CGA program. The CGA is an The delegate of SOUTH AFRICA agreed that all alliance between Cotton Council International, The CHAIR thanked Mr. Messura for his pre- members must stand together to support cotton Cotton International, and partners in India. sentation, and introduced Mr. Hussein Ghorashi promotion work. USDA provided seed money. The intention is to make a presentation on instrument classing. to start a self-sustaining long-term program. He The delegate of PAKISTAN suggested that He said that the proper worldwide use of instru- said the program was launched in October 2002, future ICAC meetings should be shorter than 5 ment classing is proving to be a diffi cult task. and he described efforts during 2003 and 2004, days. He suggested that more farmers should be He said a system to provide confi dence in the and emphasized that if the program is to work, represented in ICAC meetings. He complained transition from manual to instrument classing it must be a domestic program supported by the that cotton is measured in different units and is needed. He described multiple keys to suc- Indian industry. He described actual program ac- asked that all statistics be reported in metric cessful instrument cotton testing. He said that tivities since 2002 under the theme of “The New units. cotton-classing programs indicate that many Face of Cotton.” He described the performance people in the world have confi dence in cotton The CHAIR asked Indian government offi cials measures of success. He noted that after just one testing instruments. He showed the number of to comment on how the Government of India year of promotion, consumer awareness of the countries with classing systems, including the can promote cotton awareness. The delegate said Seal of Cotton had doubled after just one year. USA with 235 instruments, China (Mainland) the excise duty has been eliminated. Second, the He also showed that consumer attitudes toward with 23 instruments, Uzbekistan with 35, Bra- government is making taxes fi ber neutral. Third, cotton improved after one year of advertising, zil, Australia and others with fewer numbers assist with ensuring that cotton is price competi- and consumers are willing to pay more for of machines. He said USDA purchases about tive with polyester. 100% cotton products. He described plans for 50 HVI’s per year. He described the extensive The CHAIR of the Indian Cotton Mills Federa- the future of the CGA program and said that testing regimen that USDA machines must meet. tion, Mr. Ladia, said that he expects India will the program can be an important component He explained efforts to reduce variability in test install an additional 9 million spindles over the of the future. results because of external elements, including next 4 years, adding to demand for cotton. He deviations in fi ber moisture. He said that latest The CHAIR thanked Mr. Collins and asked for said exports of textiles are expected to expand. generation equipment could compensate for discussion. He said that some member mills in India are pro- moisture content and gave examples. He said that The delegate of BRAZIL thanked the presenters. moting the use of cotton by consumers. He said comprehensive personnel training is another key He supported the inclusion of Mr. Ghorashi on the work of the IFCP is laudable. He asked for to successful implementation of an instrument the panel. He asked Mr. Ghorashi if the moisture case studies of how cotton could be promoted. testing system. Another key is development of sensor described in his presentation is accurate The CHAIR thanked the speakers on the panel. standards, statistics and certifi cation programs, and can simplify the use of instrument testing. He said that promotion of cotton is an important and the last key is comprehensive technical and Mr. Ghorashi replied that yes the moisture tester link in the industry strategy. He adjourned the session at 11:35am. 42 NOVEMBER-DECEMBER 2004

Closing Session

12:00 PM, Friday December 3, 2004 the 2005 plenary is a great success and said that delegates. The delegate said that on behalf of Mr. Vishwa Nath in the Chair he hoped that we would truly have “The Whole all participants at the 63rd Plenary Meeting in Cotton World in One City.” Mumbai he would like to express sincerest grati- The CHAIR welcomed delegates, observers tude to the Government of India, the Ministry of and guests to the Closing Plenary Session. The CHAIR wished the UK Organizing Com- Textiles, the Cotton Corporation of India, The He recognized the delegate of the UK to pres- mittee a great success, and he recognized the East India Cotton Association, The Indian Cot- ent an invitation to the 64th Plenary Meeting. delegate of INDIA to offer closing remarks. ton Mill’s Federation and all other organizers of The delegate of the UK reminded that the UK The delegate thanked the ICAC for providing all the sessions and meetings for the excellent hosted the plenary meeting in 1992 in Liverpool the opportunity for India to serve as host of the conduct of deliberations, and for their hospitality and said that the Liverpool community looked 63rd Plenary Meeting. He thanked participants and friendly attitude. He wished to underline the forward to hosting the world cotton community for the successful meeting, and said that India high factual level of the prepared discussions again. The delegate referred to the copy of the had been pleased to provide congenial hospi- and presentations, and the professionalism of invitation in the registration material, including tality for civil discussions. He thanked meeting the services. He said that he well understood all a formal message from the Minster that points to sponsors, the Cotton Corporation of India, the the effort required to organize a plenary meet- Liverpool as a city with a great future, and one East India Cotton Association, and the Indian ing. He said he remembered the 1993 plenary with a wonderful past. He noted that Liverpool Cotton Mills Federation. He said that he looked in New Delhi when delegates had a chance to is selected as the European Capital of Culture forward to continued interaction with delegates visit the thousands of years of history of India. for 2008, and the 2005 ICAC plenary will be an and said that it had been a great pleasure to He thanked the Secretariat. He concluded by important element in the build up. The plenary serve as host. wishing for more meetings such as this where will be held in conjunction with an historical The CHAIR thanked the delegate of India. participants in the cotton world can meet to cotton exhibition. The plenary will also be con- develop the industry. nected to the annual ICA dinner. The delegate The delegate of PAKISTAN said that his govern- said he is conﬁ dent that with the support of the ment looks forward to hosting a future meeting The CHAIR thanked the delegate of Poland Secretariat and member countries, the meeting of the ICAC, perhaps in 2010. He asked that the for his remarks on behalf of all delegates. He next year will be a solid success. He said the ICAC hold the next available year open for Paki- seconded the thanks given to chairs and speak- Indian hosts have provided a great example on stan. The CHAIR acknowledged the invitation ers. He thanked the Secretariat and the hotel how to run a successful plenary. He expressed by Pakistan and said the Standing Committee authorities for their support, and he wished all gratitude to the Indian Organizing Committee for would deal it with in a timely manner. participants safe journeys home. the insights they have provided. He pledged that The CHAIR invited the delegate of POLAND The Closing Plenary Session was adjourned at the UK will spare no effort in making sure that to offer concluding remarks on behalf of all 12:20pm. PROCEEDINGS OF THE 63RD PLENARY MEETING 43

Steering Committee

First Meeting offi cers of the Standing Committee. Technical Seminar on the topic ‘’Rapid Instru- The Executive Director clarifi ed in reading the ment Testing: Opportunities for Breeders and 9:00 AM, Friday December 3, 2004 exact wording of the amendment proposed: other Segments of the Industry and the Need for Mr. Luc Devolder in the Chair “countries that are more than one year in ar- Uniform Defi nitions". The Report of the Chair of The CHAIR called the meeting to order and rears in the payment of assessment to the ICAC the Committee on Cotton Production Research read the agenda which was approved as such at the time of the meeting of the nominating is attached. by the delegates. committee.” No questions were asked by delegates and The CHAIR introduced the Executive Director The delegate of ARGENTINA said he was satis- the CHAIR pointed out that the topic of next who reported that a nominating committee met fi ed with the clarifi cation. year’s seminar had already been approved by on June 2, 2004 in the offi ce of the Secretariat the Drafting Committee of the Statement of the The Steering Committee approved the proposed 63rd Plenary M+eeting. to propose a slate of offi cers for the Standing amendments to the Rules and Regulations as pro- Committee for the coming year. After consid- posed by the Subcommittee on Budget. The Steering Committee approved the report eration of the Rules and Regulations, there was including the topic for next year’s seminar. a consensus to propose the nomination of M. The Executive Director said that thanks to the Bakhtiyor Ibragimov, current First Vice Chair ad attention given by the Standing Committee on The CHAIR moved to the fi fth item on the agen- interim as Chair next year. The Standing Com- Budget, to encourage timely payment of as- da and thanked Dr. Eugene Brock for skillfully mittee proposed the following slate of offi cers sessments, the overall fi nancial situation has chairing the drafting committee of the Statement. for the coming year to the Plenary Meeting: to improved during the last fi scal year and the ar- He also thanked the delegates for their willing- Mr. Bakhtiyor Ibragimov, Counselor, Trade and rears at the end of the 2003-04 fi scal year have ness to rapidly reach a consensus. Economic Affairs, Embassy of Uzbekistan for been reduced to $172,000. There were no remarks from the delegates and the post of Chair, Mr. Siphiwe Mkhize, Agri- The CHAIR expressed the hope that improve- the Statement of the 63rd Plenary Meeting was cultural Attaché, Embassy of South Africa, for ment will continue as timely payment of assess- approved. First Vice Chair, Ms. Elena Cores, Attaché (Ag- ments is the backbone of the Secretariat activities The CHAIR gave the fl oor to the delegate of riculture), Embassy of Spain, for Second Vice at the service of the world cotton industry. ARGENTINA who made two minor com- Chair. Working Paper I "Election of Standing ments regarding the meaning of two words in Committee Offi cers" is attached. The delegate of SOUTH AFRICA who thanked the Standing Committee for focusing on that Spanish. The CHAIR gave the fl oor to the delegate of important matter and improving the fi nancial The CHAIR suggested that the delegate be in- ARGENTINA who supported the proposal of situation of the ICAC. volved with the translators before fi nal release the Standing Committee. The CHAIR introduced Mr. Manjunath to pres- of the Spanish version of the Statement. The Steering Committee approved the nomina- ent the report of the Chair of the Committee on The delegate of ARGENTINA accepted the tions as proposed by the Standing Committee. Cotton Production Research. Mr. Manjunath suggestion. The CHAIR requested the Executive Director to reported that four papers were presented in The delegate of the USA expressed his concern present the Recommendations from the Stand- the Technical Seminar on the topic “How to about one word in the statement. ing Committee. At the end of the 2002-03 fi scal improve yields and reduce pesticide use” by year, 13 members of the Committee owed a total speaker from India, Pakistan, Turkey and the The CHAIR said he was worried that any change of $510,000 in arrears placing a strain on the USA offered examples of successful strategies to in the approved Statement could open the door operations of the Secretariat. In order to encour- minimize the use of pesticides without sacrifi c- to other amendments. ing yields. Mr. Manjunath said that the use of age countries to remain current in the payment The delegate of ARGENTINA declared that no pesticides in cotton has moved from aggressive of assessments, the subcommittee on Budget changes, even cosmetic, should be made after use to cautious use by employing pest monitor- recommended that delegates of countries more the statement has been approved. than one year in arrear should not be eligible to ing and economic thresholds. He reported that serve as offi cers of the Standing Committee and the 8th Open Session was entirely devoted to The CHAIR asked the delegates not insist on that invitation to host plenary meetings cannot biotechnology of cotton and that the Second Ex- modifi cations on the Statement as agreed upon be accepted from countries that are not current in pert Panel observed that countries should make by the drafting committee and formally adopted the payment of their assessments. Working Paper their own decisions about adoption of biotech by the Steering Committee. II "Proposals to Encourage Timely Payment of cotton and should not be infl uenced by external The delegate of the USA accepted no to request Assessments" is enclosed. pressures. The Expert Panel recommended that any change in the Statement. novel gene characteristics be introduced through There was a consensus in the Standing Commit- local varieties as a component of an integrated As there was no other business to deal with, the tee to forward the recommendations from the pest management system, and that biotech not CHAIR thanked the delegates for their coop- rd Subcommittee on Budget to the 63 Plenary be seen as a replacement or alternative to sound eration, as well as the delegates to the Standing Meeting and to amend Article V, Section 3 and pest management practices. The Expert Panel Committee in Washington who prepared for Article III, Section 2 accordingly. noted that the existence of a centralized regu- this meeting. He extended his thanks to the The delegate of ARGENTINA explained that latory process to evaluate and control biotech interpreters for their valuable contribution and his country’s arrears refl ect changes in the ex- varieties, the capacity to educate farmers in the to the Secretariat for their excellent work before change rate of the peso against the U.S. dollar use of biotechnology, and legislation to protect and during the Plenary Meeting, in particular the and expressed his concern that delegates from germplasm and technology are pre-requisites for Executive Director. countries falling into arrears for technical rea- the successful evaluation and adoption of biotech The CHAIR adjourned the meeting of the Steer- sons countries might not be eligible to serve as cotton. The Committee decided to hold the 2005 ing Committee at 9:15 am. 44 NOVEMBER-DECEMBER 2004

ATTACHMENTS - Mr. Siphiwe Mkhize of South Africa for 29, 2004. During discussion, it was noted that First Vice Chair, invitations to host plenary meetings could still Working Paper I be acknowledged several years in advance, but - Ms. Elena Cores of Spain for Second Vice that each year at the plenary meeting when Chair. Election of Standing invitations for future plenary meetings are considered, invitations would not be accepted Committee Offi cers Working Paper II from countries that were more than one year in arrears at that time. Recommendation from the Standing Commttee Proposals to Encourage With this understanding, the Chair found that there was a consensus in the Standing Committee Timely Payment of to forward the recommendations from the Sub- A nominating committee met on June 2, 2004 Assessments committee on Budget to the 63rd Plenary Meeting in the offi ce of the Secretariat to propose a of the Advisory Committee with a recommen- slate of offi cers for the Standing Committee Recommendation from the dation for approval. Accordingly, the Advisory for the coming year. Delegates from Belgium, Standing Commttee Committee is asked to approve the amendments Egypt, Nigeria, Paraguay, Spain, Turkey, USA, to the Rules and Regulations as proposed by the Uzbekistan and Zimbabwe and the executive Subcommittee on Budget. director were in attendance. Ms. Elena Cores At the end of the 2003-04 fi scal year, 13 mem- of Spain was elected Chair of the Nominating bers of the Committee owed a total of $510,000 Committee. in arrears. That represented 35% of the annual Report of the Chair of The Rules and Regulations specify that when budget of the Committee and placed a strain on practicable, the First Vice Chair will be nomi- the operations of the Secretariat. the Committee on Cotton nated to succeed the outgoing Chair and the The Subcommittee on Budget met on December Production Research Second Vice Chair nominated to succeed the 9, 2003 and reviewed proposals to encourage First Vice Chair. The current First Vice Chair ad countries to remain current in the payment of (Seventh and Eighth Open Sessions/ interim of the Standing Committee, Mr. Bakhti- assessments. In particular, it was noted that dur- Technical Seminar) yor Ibragimov, Counsellor, Trade and Economic ing the 62nd Plenary Meeting in Poland, it was C.D. Mayee and T.M. Manjunath Affairs, Embassy of the Republic of Uzbekistan, suggested that delegates of countries more than will be able to serve as Chair next year. Accord- one year in arrears should not be eligible to serve Mr. Chairman, ladies and gentlemen, it is an ingly, there was a consensus to nominate Mr. as offi cers of the Standing Committee. After dis- honor for me to present to you the report of the Ibragimov as Chair. Currently, the position of cussion of the need to balance the interests of Committee on Cotton Production Research of Second Vice Chair is vacant. members who have paid assessments with the the ICAC. The meeting was divided into a Sev- concerns of countries who sometimes fall into The Rules and Regulations say that the election enth Session/Technical Seminar and an Eighth arrears, the Subcommittee on Budget agreed that of offi cers should take into account: Open Session−a panel discussion on new devel- the ICAC should adopt this suggestion. 1. Rotation on as broad a geographical basis as opments in biotechnology in cotton. The Subcommittee on Budget also agreed that possible, Four papers were presented in the Technical the Committee should take into account whether Seminar on the topic ‘How to improve yields 2. Adequate representation to importing and a country is current in the payment of assess- and reduce pesticide use.’ Dr. T. P. Rajendran of exporting countries, and ments when deciding whether to accept an invi- India emphasized that crop nutrition should be 3. Ability, interest and participation in the work tation to host a plenary meeting of the ICAC. regulated to basic metabolic needs of the plant of the Committee. Accordingly, the Subcommittee on Budget rec- instead of luxury consumption of nutrients After consideration of these factors, the Nomi- ommended that the Rules and Regulations of the resulting in excessive growth and higher pest nating Committee agreed that Mr. Siphiwe Committee should be amended as follows: populations. Forewarning of pests utilizing the Mkhize, Agricultural Attaché, Embassy of South Amend Article V, Section 3 by adding the fol- relationship of weather based effects on pests Africa should be nominated as First Vice Chair. lowing sentence to the existing paragraph: and crop phenology and judicious integration of Mr. Mkhize participates actively in the meet- biotech varieties along with IPM strategies can ings of the Standing Committee and represents Delegates to the Standing Committee represent- signifi cantly reduce the use of pesticides. a consuming country. A delegate from South ing countries that are more than one year in Mr. Mumtaz M. Khan, a grower from Pakistan, Africa has not previously served as an offi cer arrears in the payment of assessments to the shared his fi rst hand experience on how to moni- of the Standing Committee. ICAC at the time of the meeting of the nominating committee shall not be eligible for nomina- tor pests, choose chemicals and properly spray Further, the Nominating Committee agreed tion as Standing Committee offi cers. so that insecticide use remains low. that Ms. Elena Cores, Attaché (Agriculture), Dr. Isa Ozkan of Turkey presented a wide range Embassy of Spain, should be nominated to serve Amend Article III, Section 2 by adding the of cultural, mechanical, biotechnical and biologi- as Second Vice Chair. Mr. Cores has attended following sentence to the end of the fi rst para- cal options that should be used before embarking each Standing Committee meeting during the graph: on chemical control. most recent two years and represents a produc- Invitations to host plenary meetings cannot be ing country. accepted from countries that are more than one Dr. Kater Hake of the USA talked about ultra- narrow row technology as a means of reducing Accordingly, the Standing Committee proposes year in arrears in the payment of assessments the growing period and minimizing pesticide the following slate of offi cers to the Plenary to the ICAC. use. Ultra-narrow row technology has been tried Meeting for the coming year: The Recommendations from the Subcommit- in the past but changed production conditions are st - Mr. Bakhtiyor Ibragimov of Uzbekistan for tee on Budget were discussed during the 471 now more favorable for this technology than they the post of Chair, Meeting of the Standing Committee on January were many years ago. PROCEEDINGS OF THE 63RD PLENARY MEETING 45

Mr. Chairman, ladies and gentlemen, to me the educate farmers, and legislation to protect germ- Adoption of biotech cotton has been variable use of pesticides in cotton has moved from ag- plasm and technology as pre-requisites for suc- in Mexico depending upon the pest complex gressive use to cautious use by employing pest cessful adoption of biotech cotton. Dr. Gary Fitt in the area. of Australia chaired the panel and presented the monitoring and economic thresholds. And, now I reported to the meeting that biotech cotton was report on behalf of all members. The Report of we have reached a stage of not advocating, a planted on over half a million hectares which is the Second Expert Panel on Biotechnology of stage of minimizing pesticides use. I am sure 6% of the total area or 11% of the hybrid cotton Cotton is a document of the meeting. we will succeed. area in India in 2004/05. India undertook exten- Mr. Chairman, nowadays biotechnology of cot- Dr. Kater Hake of Delta and Pine Land Company sive studies on feed-safety, effect on benefi cial ton is the most discussed subject in production said that biotechnology has far more applica- and non-target insects, pollen dispersal and Bt research, and the 8th Open Session was entirely tions beyond Bt and herbicide resistance. No toxin expression in plants parts before adopting devoted to biotechnology of cotton. The previous products have been commercialized, but work the technology. Area is expected to increase Plenary Meeting of the ICAC decided to form is going on in various labs around the world on signifi cantly in India. fi ber quality improve. an expert panel on biotechnology of cotton and Delegates from the USA, Colombia, Tanzania, report to this plenary. The ICAC’s Second Expert Dr. Lastus Serunjogi of Uganda talked about the South Africa and other countries expressed ap- Panel on Biotechnology of Cotton observed that negative aspect of biotechnology and stated that preciation for the work of the Second Expert countries should make their own decisions about original fears on risks to health and environment Panel on Biotechnology of Cotton. However, adoption of biotech cotton and should not be in- have been elucidated through science-based many participants expressed concerns about fl uenced by external pressures. The panel recom- studies. He hoped that other impediments, which the high cost of the technology, which is limit- mended that novel gene characteristics should be translate as fears, will be overcome gradually. ing developing countries with small growers to introduced through best technologies and locally make use of the technology. Biotech cotton was planted on 61% of the total adapted varieties. Biotech cotton should form area in Mexico in 2004/05. According to Dr. The Committee decided to hold the 2005 Tech- a component of an integrated farming system Jose Martinez-Carrillo of Mexico, Mexican nical Seminar on the topic "Rapid Instrument supporting integrated pest management. The Ex- cotton growers have accepted biotech cotton as Testing of Cotton: Opportunities for Breeders pert Panel considers availability of a centralized an important measure to control the pink boll- and other Segments of the Industry, and Need regulatory process, technically capable teams to worm, tobacco budworm and other bollworms. for Uniform Defi nitions"/

***** 46 NOVEMBER-DECEMBER 2004

DOCUMENTS

1. Agenda 8. World Cotton Trade – November 2004 2. Report of the Chairman of the Standing Committee 9. THE ICAC RE CORD ER - September 2004 3. Report of the Executive Director 10. Survey of the Cost of Production of Raw Cotton November 2004 4. COTTON: Review of the World Situation, September-October 2004 11. Report of the Second Expert Panel on Biotechnology of Cotton - November 2004 5. COTTON: World Statis tics – November 2004 12. Production and Trade Pol icies Af fect ing the Cotton 6. The Outlook for Cotton Supply in 2004/05 Industry – November 2004 7. World Textile Demand – November 2004 13. Directory

WORKING PAPERS

I. Election of Standing Com mit tee Of ﬁ c ers II. Proposals to Encourage Timely Payment of Assessments III. Topic of the 2005 Technical Seminar IV. Member Countries in Arrears

REPRESENTATION

Chairman Mrs Silvia Noemi Córdoba Australian Government Department of Foreign Affairs and Trade Mr. Wajahat Habibullah Department of Agriculture, Livestock, Fisheries and Food The R.G. Casey Bldg. John McEwen Cres. Canberra, ACT 0221 Vice Chairman Paseo Colón, 982 Buenos Aires Australia Mr. Luc Devolder Argentina Tel. (61-2) 626-13465 Tel. (54-114) 349-2177 Fax: (61-2) 626-12927 Chairmen Email: [email protected] Email: [email protected] Committee on Cotton Production Research Mr Amadeo Nicora Mrs Christine Campbell Vice President Chair Mr. C.D. Mayee INTA Australian Cotton Industry Council and National Institute for Agricultural Technology Level 7 Mr. T.M. Manjunath EEA Sáenz Peña 17 Bridge Street CC 164 Sydney 2000 Delegates Member Countries Argentina Australia Tel. (54-3722) 427-471 Tel. (61-2) 932-5900 Fax: (61-2) 9325-9059 Argentina Ms Diana Piedra INTA Mr Gordon Cherry Lic Luis Pellegrino Instituto Nacional de Technología Agropecuaria Chairman Advisor EEA Sáenz Peña Australian Cotton Shippers Association Department of Agriculture, Livestock, Fisheries CC 164 Dunavant Enterprises and Food Argentina 130 Commercial Road, Teneriffe General Vedia, 465 Tel. (54-3722) 427-471 Brisbane Resistencia, Chaco 3500 Queensland 4005 Argentina Australia Tel. (54-3722) 443-970 Australia Tel. (61-7) 3253-5999 Fax: (54-11) 4349-2177 Mr Michael Tietge Fax: (61-7) 3257-4131 Email: [email protected] Assistant Secretary Email: [email protected] PROCEEDINGS OF THE 63RD PLENARY MEETING 47

Mr. Bruce Finney Tel. (55-11) 374-80021 Narrabri NSW 2390 Executive Director Fax: (55-11) 374-80787 Australia Cotton Research & Development Corporation Email: [email protected] Tel. (61-2) 6792-4088 P O Box 282 Fax: (61-2) 6792-4400 2 Lloyd Street Mr Joao Luis Ribas Pessa Email: [email protected] Narrabri, NSW 2390 President Australia AMPA Mr. Dorcen Walters Tel. (61-2) 6792-4088 Asociacao Matogrossense dos Productores de Australian Cotton Shippers Association Fax: (61-2) 6792-4400 Algodao Dunavant Enterprises Email: bruce.fi [email protected] Rua B, Esquina com Rua 2 130 Commercial Road, Teneriffe Edifi cio Famato, CPA Brisbane Dr Gary Fitt Cuiaba Queensland 4005 Strategy Director MT 78050-970 Australia CSIRO Brazil Tel. (61-7) 3253-5999 Entomology Dept. Tel. (55-65) 644-1800 Fax: (61-7) 3257-4131 120 Meiers Rd Fax: (55-65) 644-1800 Email: [email protected] Indooroopilly Email: [email protected] Queensland 4068 Australia Belgium Mr Haroldo Rodrigues da Cunma Tel. (61-73) 214-2828 Mr Luc Devolder President Fax: (61-73) 214-2881 Minister Plenipotentiary AGOPA Email: gary.fi [email protected] Western European Countries and North America Rua 87, NO. 662, Sector Sur Direction General for Bilateral Relations Goiania 60 Mr George Gallacher Federal Public Service for Foreign Affairs, 74093-3000 Deputy Chairman Foreign Trade Brazil Australian Cotton Industry Council and Development Cooperation Tel. (55-62) 278-1319 6 O’Connell St. Karmelietenstraat 15 Fax: (55-62) 278-1319 Sydney 2000 Brussels 1000 Email: [email protected] Australia Belgium Tel. (61-2) 9295-4800 Tel. (32-02) 501-8259 Mr Robson de Macedo Vieira Fax: (61-2) 9295-4888 Fax: (32-02) 501-8827 Researcher Email: [email protected] Email: [email protected] EMBRAPA Rua 87, no. 662 Mr Hilton Lobb Mr Jacques Alexander Sector Sur Executive Offi cer Director Goiania Australian Cotton Shippers Association Louis Dreyfus Cotton International N.V. Brazil P.O. Box 1930 Arenbergstraat 21 North Sydney 2059 Antwerp 2000 Burkina Faso Australia Belgium Mr Georges Yameogo Tel. (61-2) 9929-8199 Tel. (32-3) 203-6702 Directeur de Production Fax: (61-2) 9929-5477 Fax: (32-3) 203-6714 SOFITEX Email: [email protected] Email: [email protected] Production cotonnière Mr Jim McMahon 01 BP 147 Policy Offi cer Benin Bobo Dioulasso Australian Department of Agriculture, Fisheries Mr André Katary Burkina Faso & Forestry Director Tel. (226) 7020-4877 Crops, Wine & Horticulture Department Center of Agricultural Research of Cotton and Fax: (226) 2097-3908 G.P.O. Box 858 Fibers Email: [email protected] Canberra 2601 Ministry of Agriculture, Livestock and Fisheries Australia 01 BP 715 Cotonou Mr Zéphirin Augustin Zagre Tel. (61-2) 6272-3628 Benin Directeur Commercial Fax: (61-2) 6272-3359 SOFITEX Email: [email protected] Production cotonnière Brazil 01 BP 147 Mr Philip Russell Mr Luis Antonio Balduino Carneiro Bobo Dioulasso Chief Executive Offi cer Counselor Burkina Faso Cotton Australia Ltd Embassy of Brazil Tel. (226) 7021-1729 Level 2, 490 Crown Street, Surry Hills New Delhi Fax: (226) 2097-0023 Sydney, NSW 2010 India Email: [email protected] Australia Tel. (61-2) 93608430 Mr Andrew MacDonald Chad Fax: (61-2) 93608434 Consultant Email: [email protected] Santista Textil S.A. Mr Ibrahim Malloum Textile Division Commercial Manager Mr. Ralph Schulzé Av Maria Coelho Aguiar 215, bloco A 2.º andar Cotontchad Consultant Jardim Sao Luis 13, rue de Monceau Cotton Research & Development Corporation Santo Amaro Paris P O Box 282 Sao Paulo 05804-900 France 2 Lloyd Street Brazil 48 NOVEMBER-DECEMBER 2004

China (Taiwan) Tel. (57-1) 622-4812 Bogotá Fax: (57-1) 621-1209 Colombia Mr. Kuo-Hsiang Hsu Email: [email protected] Tel. (57-1) 616-8527 Deputy Director General Fax: (57-1) 616-6890 Ministry of Economic Affairs Mr Jorge Castillo Email: [email protected] International Cooperation Dept. Technical Secretary 15, Fu-Jhou Street CONALGODON Mr Miguel Orlando Rovira-Rodríguez Taipei 10015 Fondo de Estabilización de Precios del Algodón Agricultor China (Taiwan) Calle 87 # 20-27, Ofi cina 502 COALCESAR Tel. (886-2) 2391-8189 Bogotá Calle 90 #18-35, Of. 308 Fax: (886-2) 2321-3275 Colombia Bogotáa Email: [email protected] Tel. (57-1) 616-4243 Colombia Fax: (57-1) 621-1209 Tel. (57-1) 616-8527 Mr Sheng-Fu Chiu Email: [email protected] Fax: (57-1) 616-6890 Director Email: [email protected] China Textile Institute Mr Francisco Dávila No. 6 Chen-Tcan Rd Advisor Tu-Chen City Côte d’Ivoire CONALGODON Taipei Confederación Colombiana del Algodón Mr Idrissa Traore China (Taiwan) Calle 87 # 20-27, Ofi cina 502 Director of the International Cooperation of Tel. (886-2) 2267-0321 Bogotá Agriculture Fax: (886-2) 2267-3107 Colombia Ministry of Agriculture Email: [email protected] Tel. (57-1) 622-4812 Ministry of State Fax: (57-1) 621-1209 BP V 82 Mrs Hsiu-Chen Hsueh Email: [email protected] Abidjan 77 Chung Kings Road, 9 H. Section 1 Côte d’Ivoire Taipei Mr Jorge H. Olarte Tel. (225) 2021-0983 China (Taiwan) Manager Tel. (886-2) 2382-2551 DIAGONAL Mr Kone Alidou Email: [email protected] Calle 52 No. 41-42, Ofc. 1001 Directeur du Budget & Controle de Gestion Medellín CIDT Mr Shih-Chou Huang Colombia 01 BP Senior Specialist Tel. (57-4) 513-5720 Abidjan 4125 Ministry of Economic Affairs Fax: (57-4) 251-1878 Côte d’Ivoire 15, Fu-Zhou Street Email: [email protected] Tel. (225) 2021-1659 Taipei Fax: (225) 2022-2761 China (Taiwan) Mr Juan E. Restrepo Email: [email protected] Tel. (886-2) 2332-12200 President Email: [email protected] DIAGONAL Mr Vangah Atekebrai Abel Calle 52 No. 41-42, Ofc. 1001 Director of Export Products Mr Chih-Chiang Lee Medellín Ministry of Agriculture Second Secretary Colombia Ministry of State Ministry of Foreign Affairs Tel. (57-4) 513-5720 BP V 82 Department of International Organizations Fax: (57-4) 251-1878 Abidjan 2, Kaitakelan Boulevard Email: [email protected] Côte d’Ivoire Taipei 100 Tel. (225) 2021-0983 China (Taiwan) Mrs Alicia Ximena Rodríguez Tel. (886-2) 2348-2545 Agricultora Mr Boni Nana Kassibra Marcelline Fax: (886-2) 2361-7694 COALCESAR Tresoier General Email: [email protected] Calle 90 #18-35, Ofi cina 308 Intercoton Bogotá 17 Bp 988 Mr Heng-Yi Tu Colombia Abidjan 17 President Tel. (57-1) 616-8527 Côte d’Ivoire Wan Yuan Textiles Co., Ltd Fax: (57-1) 616-6890 Tel. (225) 2030-5315 No.77 Sec.1, Chung King South Road Email: [email protected] Taipei 100 China (Taiwan) Egypt Mr Mario Alejandro Rodríguez Tel. (886-2) 2311-1520 Agricultor Mr Nabil El Marsafawy Fax: (886-2) 2381-2431 COALCESAR Chairman Email: [email protected] Calle 90 #18-35, Ofi cina 308 Trade Holding Co Bogotá 25, El Horrefa St Colombia Colombia Alexandria Tel. (57-1) 616-8527 Egypt Mrs Luz Amparo Fonseca-Prada Tel. (20-3) 393-4154 Executive President Fax: (57-1) 616-6890 Email: [email protected] Fax: (20-3) 391-9811 CONALGODON Email: [email protected] Confederación Colombiana del Algodón Calle 87 # 20-27, Ofi cina 502 Mr Mario Rodríguez-Rico Gerente Mr Mohamed Salah Abd El Wanis Bogotá Cotton Consultant Colombia COALCESAR Calle 90 #18-35, Ofi cina 308 GTZ-Cotton Sector Promotion Program Ministry of Agriculture & Land Reclamation PROCEEDINGS OF THE 63RD PLENARY MEETING 49

Michael Bakhoum Str., Grennhouse Building Dr. Mohamed Ahmed Raafat Wachtstr. 17-24 Dokki - Cairo Director Bremen 28195 Egypt Cotton Research Institute Germany Tel. (20-2) 3365-416 9 El-Gammaa st. Giza, Egypt Email: [email protected] Fax: (20-2) 3365-415 Cairo Email: [email protected] Egypt Mr Norbert G. Stuhlfauth Tel. (20-2) 572-5035 Otto Stadtlander GmbH Mr Salah El Attar Fax: (20-2) 572-5035 Trading Dept. Chairman Email: [email protected] Marcusalle 3 Catgo Bremen D-28359 66 El Horria Ave. Mr Yehia Said Ali Eid Germany Alexandria Minister Plenipotentiary Tel. (49-421) 2042-114 Egypt Embassy of Egypt Fax: (49-421) 2042-200 Tel. (20-3) 485-6084 Commercial Bureau Email: [email protected] Fax: (20-3) 484-7032 1/50M, Niti Marg, Chanakyapuri Email: [email protected] New Delhi 110021 Mr Detlev Trede India President Mr Mohsen El Gilany Tel. (91-11) 268-73818 Bremen Cotton Exchange Chairman Fax: (91-11) 2688-5922 Wachtstrasse 17-24 Cotton and Textile Industries Holding Co. Email: [email protected] Bremen 28195 7 El Taher St., Abdin Germany Cairo Mr Hussein Yehia Tel. (49-421) 339-700 Egypt Supervisor of the National Program of Fiber Fax: (49-421) 339-733 Tel. (20-2) 390-5153 Crops Email: [email protected] Fax: (20-2) 395-3446 Cotton Research Institute Email: [email protected] Ministry of Agriculture & Land Reclamation Mr Jan B. Wellmann 9 El Gama Str. Executive Director Mr Shaﬁ k Gomaa Cairo - Giza Bremen Cotton Exchange President and Managing Director Egypt Wachtstraße 17- 24 MISR Cotton Export Co. Tel. (20-2) 572-3442 Bremen 28195 19 Talaat Harb St. Fax: (20-2) 572-5035 Germany Alexandria Email: [email protected] Egypt Greece Tel. (20-3) 485-1615 Mr Mohamed Zidan Fax: (20-1) 485-1588 Minister Plenipotentiary Dr Urania Kechagia Embassy of Egypt Director Mr Aly Mohamed Aly Commercial & Economic Affairs National Agricultural Research Foundation Cotton Research Manager 2232 Massachusetts Ave. NW Cotton Institute Ministry of Foreign Trade and Industry Washington DC 20008 Sindos Industrial Area 18 Maad Naser USA Thessaloniki 574 00 Kornish Al Nile, Shoubra Tel. (202) 265-9111 Greece Cairo Fax: (202) 328-4517 Tel. (30-2) 3107-96512 Egypt Email: [email protected] Fax: (30-2) 3107-96513 Tel. (20-2) 430-1879 Email: [email protected] Fax: (20-2) 430-1879 Germany Dr Fotios Xanthopoulos Mr Mohamed Montasser Mrs Ina Grohmann Deputy Director President Advisor for Commodity Policy National Agricultural Research Foundation Alcotexa Federal Ministry of Economics and Technology Cotton Institute Alexandria Cotton Exporters Assoc. Scharnhorststr 34-37 Sindos Industrial Area 12 Mohamed Talaat Nooman St. Berlin 10115 Thessaloniki 57400 Alexandria 2111 Germany Greece Egypt Tel. (49-30) 2014-7488 Tel. (30-2) 3107-99444 Tel. (20-3) 480-6971 Fax: (49-30) 2014-5422 Fax: (30-2) 3107-96513 Fax: (20-3) 487-3002 Email: [email protected] Email: [email protected] Email: [email protected] Mr Henning Hammer India Mr Ayman Nassar Sales Manager Managing Director Otton Stadtlander GmbH Mr Atul Chaturvedi Nassco Trading Marcusallee 3 Joint Secretary 6, Dar El Shifa St. Bremen 28359 Ministry of Textile Garden City Germany Ofﬁ ce of the Textile Commissioner Cairo 11451 Tel. (49-421) 204-20 48, New Marine Lines Egypt Fax: (49-421) 2042-200 New CGD Bldg Tel. (20-2) 795-4470 Email: [email protected] Mumbai 400 020 Fax: (20-2) 796-2601 India Email: [email protected] Mr Jens D. Lukaczik Tel. (91-22) 2200-4510 General Director Fax: (91-22) 2200-4693 Cargo Control Group Email: [email protected] 50 NOVEMBER-DECEMBER 2004

Mr Anupam Barik Mr S.A. Patil The South India Cotton Association Director Vice Chancellor Cotton Trae Ministry of Agriculture University of Agricultural Sciences P.B.No.3310 Directorate of Cotton Development Yettinagudda Campus 477, Kamarajar Road 14 Ramji Bhai Kamani Marg Krishinagar Uppilipayam Post Ballard Estate Dharwad 580 005 Coimbatore P.O. Box 1002 India Tamil Nadu 641 015 Mumbai 400-038 Tel. (91-836) 447-783 India India Email: [email protected] Tel. (91-422) 2573-018 Fax: (91-422) 257-2115 Mr Wajahat Habibullah Mr P. D. Patodia Email: [email protected] Secretary of Textiles Vice President Government of India East India Cotton Association Iran India M/s. Prime Textiles Ltd. 604 Raheja Chambers, 6th fl oor Mr BahramNazari Mr Kishorilal F. Jhunjhunwala 213 Nariman Point Managing Director President Mumbai 400 021 Iran Cotton Union East India Cotton Association India Beheshti Street, No. 293, 3rd Floor M/s. Jhunjhunwala Company Tel. (91-22) 2288-1001 Tehran 1514617613 45, Maker Chambers III Fax: (91-22) 22488-1002 Iran 223 Nariman Point Email: [email protected] Tel. (98-21) 873-1092 Mumbai 400 021 Fax: (98-21) 873-1435 India Mr C. Roul Email: [email protected] Tel. (91-22) 2283-0036 Director Fax: (91-22) 2285-2783 Ministry of Textile Ms Nasrin Yazdani Email: [email protected] Offi ce of the Textile Commissioner General Manager 48, New Marine Lines General Department of Cotton & Oil Seeds of Mr Suresh Kotak New CGD Bldg Iran Chairman Mumbai 400 020 Agriculture Jahad-e Ministry of Iran Kotak & Co Ltd. India # 80-North Felestin St 240 Dr. D.N. Road, Fort Tel. (91-22) 2200-4510 Tehran Mumbai Fax: (91-22) 2200-4693 Iran India Email: [email protected] Tel. (98-21) 8967-960 Tel. (91-22) 240-4876 Fax: (98-21) 896-8363 Email: [email protected] Mr Sharad Kumar Saraf Email: [email protected] Chairman and Managing Director Mr Subodh Kumar Technocraft Group Israel Textile Commissioner M.I.D.C. Marol Industrial Area Ministry of Textile Road No. 3, Andheri (E) Mr Ram Vidan Offi ce of the Textile Commissioner Mumbai 400 093 Managing and Marketing Director 48, New Marine Lines India The Israel Cotton Production & Marketing Board New CGD Bldg Tel. (91-22) 795-4470 Ltd. Mumbai 400 020 Fax: (91-22) 2835-6559 P. O. Box 384 India Email: [email protected] Herzlia B’ 46103 Tel. (91-22) 2200-4510 Israel Fax: (91-22) 2200-4693 Mr Sushilkant P. Shah Tel. (972-9) 950-9493 Email: [email protected] Addl. Vice President Fax: (972-9) 950-9159 East India Cotton Association Email: [email protected] Mr V.K. Ladia M/s. Bhaidas Cursondas & Co. Chairman Sir Vithaldas Chambers Mr Kobi Kliger The Indian Cotton Mills’ Federation 16, Bombay Samachar Marg. C.F.O India Mumbai 400 001 The Israel Cotton Production & Marketing Board India Ltd. Mr Vishwa Nath Mathur Tel. (91-22) 2240-1207 Finance Dept. Chairman-Cum-Managing Director Fax: (91-22) 2240-1368 P. O. Box 384 Cotton Corporation of India Ltd. Email: [email protected] Herzlia B’ 46103 Kapas Bhavan, Plot no. 3, A Sector 10 Israel Navi Mumbai 400 614 Mr PhundanSingh Tel. (972-9) 950-9493 India Director Fax: (972-9) 950-9159 Tel. (91-22) 757-6044 Central Institute for Cotton Research Email: [email protected] Fax: (91-22) 757-6030 Post Bag no. 2 Email: [email protected] Shankar Nagar Mrs Ofra Vidan Nagpur The Israel Cotton Production & Marketing Board Mr C.D. Mayee India Ltd. Agriculture Commissioner Tel. (91-7103) 275-536 P. O. Box 384 Government of India Email: [email protected] Herzlia B’ 46103 India Israel Mr K.N. Viswanathan Tel. (972-9) 950-9493 Honorary Secretary Fax: (972-9) 950-9159 Email: [email protected] PROCEEDINGS OF THE 63RD PLENARY MEETING 51

Italy Pakistan Mr Anis Ul-Hag Secretary Mr Raman Subramanian Dr Muhammad Hanif All Pakistan Textile Mills Assoc. Trade Analyst Agricultural Development Commissioner 97-A, Aziz Ave. Canal Bank off Gulberg Rd Italian Trade Offi ce Ministry of Food, Agriculture and Livestock 57-T Dha, Phase 2 Italy Islamabad Lahore Pakistan Punjab 54000 Korea, Rep. of Pakistan Mr Masood Alam Rizvi Tel. (92-42) 575-4345-8 Mr Kee-Soo Chung Chairman Fax: (92-42) 575-4341 Executive Vice Chairman Trading Corporation of Pakistan Ltd Email: [email protected] Spinners & Weavers Association of Korea 4th & 5th Floor, Block B 43-8 Kwanchul-dong Finance & Trade Center Mr Anwar Yaseen Chongro-ku Sharea Falsal Director Seoul 110-111 Karachi 75530 Karachi Cotton Company Rep of Korea Pakistan Karachi Tel. (82-2) 735-5741 Tel. (92-21) 920-2947 Pakistan Fax: (82-2) 735-5748 Fax: (92-21) 920-2722 Email: [email protected] Email: [email protected] Paraguay Mali Mr Ziad Bashir President Dr R. Nicolás Zárate Rojas Gul Ahmed Textile Mills Ltd. Mr Togola Bakary Vice Minister HT / 4-B Landhi Ministry of Agriculture and Livestock President Karachi 75120 CMDT Presidente Franco no. 476 Pakistan Asunción Compagnie Malienne pour le Development des Tel. (92-21) 501-8274 Textiles Paraguay Fax: (92-21) 501-9802 Tel. (595-21) 442-1441 Ave. de la Marne Email: [email protected] Bamako BP 487 Fax: (595-21) 441-340 Email: [email protected] Mali Mr Khawaja Tahir Mahmood Tel. (223) 221-0505 Director Mr Félix Stiegwardt Fax: (223) 221-9532 Shafi q Enterprises Email: [email protected] CADELPA Room # 409, 4th fl oor Paraguyan Cotton Chamber Haji Adam Chambers Mr Ibrahima Coulibaly S.E. Estigarribia, 4744 Altaf Hussain Road Asunción 600-739 Controleur de Gestion Principal New Chali CMDT Paraguay Karachi Tel. (595-21) 600-739 Compagnie Malienne pour le Development des Pakistan Textiles Fax: (595-21) 663-017 Tel. (92-21) 257-1458 Email: [email protected] Ave. de la Marne Fax: (92-21) 257-1537 Bamako BP 487 Email: [email protected] Mali Philippines Tel. (223) 221-8340 Mr Adil Khan Miankhel Mr Eugenio Orpia, Jr Fax: (223) 221-9498 Section Offi cer Administrator Email: [email protected] Ministry of Commerce Cotton Development Administration Government of Pakistan Department of Agriculture Mr Boubacar Diagne Islamabad 1/F Asiatrust Bank Annex Bldg.,Quezon Blvd., Director Commercial Pakistan Quezon City 1100 CMDT Philippines Compagnie Malienne pour le Development des Mr S.M. Sibtain Tel. (63-2) 374-7427 Textiles Director Fax: (63-2) 374-8173 Ave. de la Marne Baltic Control Pakistan (Pvt) Ltd Email: bulak@pacifi c.net.ph Bamako BP 487 4th Floor, State Life Building # 1, Mali I.I.Chundrigar Road Mr Isidor Gilan Tel. (223) 221-0505 Karachi President Fax: (223) 221-9532 Sind 74000 Primatex Fibre Corporation Email: [email protected] Pakistan U2B-Country Space Bldg. 1 Tel. (92-21) 241-2121 Sen. Gil Puyat Ave. Netherlands, The Fax: (92-21) 241-0222 Makati City 1200 Email: [email protected] Ms Marjolein Geusebroek Philippines Policy Offi cer Tel. (63-2) 810-8810 Mr Ibab Badar Siddiqui Ministry of Foreign Affairs Fax: (63-2) 816-0159 Vice President P.O. Box 20061 Email: [email protected] Ministry of Food, Agriculture and Livestock The Hague 2500 EB Moulvi Tamizuddin Khan Road The Netherlands Karachi 74200 Poland Tel. (31-70) 3486-442 Pakistan Mr Krzysztof Majka Fax: (31-70) 3485-956 Tel. (92-21) 920-2590 Ambassador Email: [email protected] Email: [email protected] Embassy of the Polish Republic 50 M Shantipath 52 NOVEMBER-DECEMBER 2004

Chanakyapuri Fax: (27-12) 804-8647 Silverton New Delhi 110021 Email: [email protected] Pretoria India South Africa Mr Hennie Bruwer Tel. (27-12) 804-1462 Mr Stanislaw Dybilas CEO Fax: (27-12) 804-86-47 President Cotton SA Textilimpex Ltd PO Box 912232 Sudan 25, Traugutta St. Silverton Lodz 90-950 Pretoria Mr Abas Abdel Bagi Hamad Poland South Africa Chairman of the Board Tel. (48-42) 632-5180 Tel. (27-12) 804-1462 The Sudan Cotton Co. Ltd. Fax: (48-42) 636-1638 Fax: (27-12) 804-8647 P.O. Box 1672 Email: [email protected] Email: [email protected] Khartoum Sudan Mrs Iwona Frydrych Mr Phenias Gumede Tel. (249-11) 775-755 Institute of Textiles Architecture Cotton SA Fax: (249-11) 770-703 276, Piotrkowska St. PO Box 912232 Email: [email protected] Lodz 90-950 Silverton Poland Pretoria Mr Abdel Rahman Abdalla Ali Tel. (48-42) 681-0070 South Africa Director Assistant for Production Fax: (48-42) 684-2300 Tel. (27-12) 804-1462 The Sudan Cotton Co. Ltd. Email: [email protected] Fax: (27-12) 804-8647 P.O. Box 1672 Khartoum Mr Makgorzata Matusiak Dr Siphiwe F Mkhize Sudan Institute of Textiles Architecture Minister (Agriculture) Tel. (249-11) 775-755 276, Piotrkowska St. Embassy of South Africa Fax: (249-11) 770-703 Lodz 90-950 Department of Agriculture Email: [email protected] Poland 3051 Massachusetts Avenue NW Tel. (48-42) 681-0070 Washington DC 20008 Dr Abdin Mohamed Ali Fax: (48-42) 684-2300 USA Director General Email: [email protected] Tel. (202) 274-7989 The Sudan Cotton Co. Ltd. Fax: (202) 363-8620 P.O. Box 1672 Mr Zbigniew Roskwitalski Email: [email protected] Khartoum Executive Vice President Sudan Gdynia Cotton Association Mr Japie Smit Tel. (249-11) 775-755 7, Derdowskiego St. Business Developer Fax: (249-11) 770-703 Gdynia 81-369 Department of Agriculture Email: [email protected] Poland Private Bag x 250 Tel. (48-58) 620-7598 Pretoria 0001 Mr Tag Mohamed Babakir Fax: (48-58) 620-7597 South Africa Manager Email: [email protected] Tel. (27-12) 3198-8460 The Sudan Cotton Co Fax: (27-12) 319-8132 Khartoum Mr Wlodzimierz Ziokkowski Email: [email protected] Sudan President Tel. (249-183) 770-703 Pomeranian Special Economic Zone Ltd Mr Mel Ueckermann 9, Wladyslawa IV St. Project Manager Mr Elfadil Abdel Rahman Bbiker Sopot 81-703- Cotton SA National Cotton Coordinator Poland Cotton Strategic Plan Agricultural Research Corp. Tel. (48-58) 555-9710 PO Box 912232 P.O. Box 1672 Fax: (48-58) 555-9711 Silverton Khartoum Email: [email protected] Pretoria 0127 Sudan South Africa Tel. (249-11) 775-755 Fax: (249-11) 770-703 Russia Tel. (27-12) 804-1462 Fax: (27-12) 804-4349 Email: [email protected] Mr Kamir R. Galiev Email: [email protected] Russian Trade Commissioner Switzerland Russian Trade Representation Mr Leonard Venter Mumbai Chairperson Mr Josef Eisele India Cotton SA Consul General PO Box 912232 Embassy of Switzerland Mumbai South Africa Silverton Pretoria India Dr Eugene Brock South Africa Cotton SA Tel. (27-12) 804-1462 Mr Joseph Koch PO Box 912232 Fax: (27-12) 804-8647 Deputy Consul General Silverton Embassy of Switzerland Pretoria Mr Hansie Willemse Mumbai South Africa Cotton SA India Tel. (27-12) 804-1462 PO Box 912232 PROCEEDINGS OF THE 63RD PLENARY MEETING 53

Syria Togo Email: [email protected] Mr Ahmad S. E. Saraj Eddin Mr Sambiani Leini Lare Mr Adnan Kirali Marketing Directorate in Charge General Secretary Acting General Director Cotton Marketing Organization Ministry of Agriculture, Livestock and Fisheries Ministry of Industry of Commerce P.O. Box 729 Lome Ankara Aleppo Togo Turkey Syria Tel. (963-21) 223-9495 Mr Kossi Messan Ewovor Mr Umit B Kutlu Fax: (963 -21) 221-5697 Deputy General Director Head of Department Email: [email protected] SOTOCO Ministry of Agriculture and Rural Affairs BP 3553 Turkey Mr Henry Samman Lome Production Department in Charge Togo Mr Basri Ozcoban Cotton Marketing Organization Board Member P.O. Box 729 Mr Gnadi N’Laba Pre Taris Cotton Cooperatives Union Aleppo Commercial Director 1492 Sok. No. 14 Syria SOTOCO Alsancak Tel. (963-21) 223-9495 BP 3553 Izmir 35249 Fax: (963 -21) 221-5697 Lome Turkey Email: [email protected] Togo Tel. (90-232) 463-5500 Fax: (90-232) 421-1457 Tanzania Turkey Mr Raphael N. Mlolwa Mr Ziya Altunyaldiz Dr. Isa Ozkan Chairman of the Board of Directors Deputy General Director of Exports Acting General Manager Tanzania Cotton Lints and Seed Board Undersecretariat of Foreign Trade Nazilli Cotton Research Institute P.O. Box 9161 Offi ce of the Prime Ministry Cotton Breeding and Genetics Dept. Dar Es Salaam Ankara Pamuk Arastirma Enstitusu Tanzania Turkey Nazilli Tel. (255-22) 212-2564 Aydin 09900 Fax: (255-22) 211-2894 Mr Musa Demir Turkey Email: [email protected] Foreign Trade Expert Tel. (90-256) 313-1750 Undersecretariat of Foreign Trade Fax: (90-256) 313-3093 Mr Samir A. Esmail Offi ce of the Prime Ministry Email: [email protected] Director General Directorate of Exports Afrisian Ginning Ltd Ankara Mr Ibrahim Senel PO Box 19964 Turkey Head of Department Dar es Salaam Undersecretariat of Foreign Trade Tanzania Mr Engin Dikici Offi ce of the Prime Ministry Head of Department General Directorate of Exports Mr Satpal Gupta Ministry of Industry of Commerce Ankara Director Ankara Turkey Birchand Oil Mill & Kahama Cotton Co. Turkey P.O. Box 210 Mr Ahmet Tanriseven Mwanza Mr Emin Dinleten Engineer Tanzania Board Member Ministry of Agriculture and Rural Affairs Tel. (255-28) 257-0259 Izmir Chamber of Commerce Turkey Fax: (255-28) 257-0759 Izmir Turkey Uganda Mr Joe Kabissa Mr Richard Parwot Director General Mr Fatih Dogan Chairman Tanzania Cotton Lints and Seed Board Board Member Cotton Development Organization P.O. Box 9161 Mediterranean Exporters’ Union Cotton House, plot 15 Dar Es Salaam Ticaret Borsai Yani Pamuk APT. KAT.3 Clement Hill Road Tanzania Adana 01120 Kampala Tel. (255-22) 212-2564 Turkey Uganda Fax: (255-22) 211-2894 Tel. (90-322) 458-4395 Tel. (256-41) 236-394 [email protected] Fax: (90-322) 453-5286 Fax: (256-41) 232-975 Email: [email protected] Email: [email protected] Mrs Octtavina Ramadhani Agricultural Research Offi cer Mr Sebahattin Gazanfer Mr Kandarp Kinariwalla Agricultural Research Institute General Manager Member Lake Zone Taris Cotton Cooperatives Union Uganda Ginners & Cotton Exporters Association P.O. Box 1433 1492 Sok. No. 14 P.O. Box 7018 Mwanza Alsancak Kampala Tanzania Izmir 35249 Uganda Turkey Tel. (256-77) 72-5626 Tel. (90-232) 421-1472 Fax: (256-41) 343-563 Fax: (90-232) 421-1457 Email: [email protected] 54 NOVEMBER-DECEMBER 2004

Mr Sam Okello Ocero Tel. (44-151) 224-6315 Mr Mark Messura Chairman Fax: (44-151) 224-6452 Vice President Uganda Ginners & Cotton Exporters Association Email: [email protected] Cotton Incorporated P.O. Box 7018 Strategic Planning Kampala Mr Ray Butler 6399 Weston Parkway Uganda Chief Editor and Managing Director Cary NC 27513 Tel. (25671) 785-390 Cotton Outlook USA Fax: (256-41) 347-148 458 New Chester Road Tel. (919) 678-2323 Email: [email protected] Rock Ferry Fax: (919) 678-2231 Birkenhead Email: [email protected] Mr Magan Patel Merseyside CH42 2AE Lead Ginner England Mr John D. Mitchell Uganda Ginners & Cotton Exporters Association Tel. (44-151) 644-6400 First Vice President P.O. Box 7018 Fax: (44-151) 644-8550 American Cotton Shippers Assoc. Kampala Email: [email protected] 1707 L Street, NW Uganda Suite 1404 Tel. (256-77) 222-959 United States Washington DC 20006 Fax: (256-43) 122-523 USA Email: [email protected] Mr Patrick Packnett Tel. (202) 296-7116 Deputy Director, Analysis Fax: (202) 659-5322 Mr Ravi Patel USDA Lead Ginner Foreign Agricultural Service, Cots Div. Mr Jarral Neeper Uganda Ginners & Cotton Exporters Association 1400 Independence Ave. SW, Stop 1051 Vice President P.O. Box 7018 Washington DC 20250-1051 Calcot, Ltd. Kampala USA Marketing Dept. Uganda Tel. (202) 720-9519 P. O. Box 259 Tel. (256-41) 345-242 Fax: (202) 690-1171 Bakersﬁ eld CA 93302 Fax: (256-31) 2630-20 Email: [email protected] USA Email: [email protected] Tel. (661) 327-5961 Mr Tim Barry Fax: (661) 861-9870 Mr Thakore Patel Senior Executive Vice President Email: [email protected] Executive Committee Member Board of Trade Uganda Ginners & Cotton Exporters Association Massapequa Park Dr Jeanne Reeves P.O. Box 7018 New York NY Associate Director Kampala USA Cotton Incorporated Uganda Agricultural Research Tel. (256-71) 507-682 Mr David B. Collins 6399 Weston Parkway Fax: (256-31) 263-020 Assistant Executive Director Cary NC 27513 Email: [email protected] Cotton Council International USA Regional Director South Asia & Arabian Gulf Tel. (919) 678-2370 Mrs Jolly Sabune 1521 New Hampshire Avenue, N.W. Fax: (919) 678-2233 Managing Director Washington DC 20036 Email: [email protected] Cotton Development Organization USA Cotton House, plot 15 Tel. (202) 745-7805 Mr Allen Terhaar Clement Hill Road Fax: (202) 483-4040 Executive Director Kampala Email: [email protected] Cotton Council International Uganda 1521 New Hampshire Ave. NW Tel. (256-41) 236-394 Mr Neal P. Gillen Washington DC 2036 Fax: (256-41) 232-975 Executive Vice President USA Email: [email protected] American Cotton Shippers Assoc. Tel. (202) 745-7805 1707 L Street, NW Fax: (202) 483-4040 Mr Lastus Serunjogi Suite 1404 Email: [email protected] Director of Research Washington DC 20006 National Agricultural research Organization USA Mr Philip Wakelyn P.O. Box 295 Tel. (202) 296-7116 Senior Scientist Clement Hill road Fax: (202) 659-5322 National Cotton Council Emtebre Email: [email protected] 1521 New Hampshire Ave. Uganda Washigton DC 20036 Tel. (256-77) 602-553 Mr James Johnson USA Fax: (256-77) 250-553 Agricultural Economist Tel. (202) 745-7805 Email: [email protected] USDA Fax: (202) 483-4040 Foreign Agricultural Service 1400 Independence Ave. United Kingdom Mr Robert S. Weil, II Washington DC 20250-1051 Chairman Mr David Harrison USA Weil Brothers-Cotton, Inc. Government Ofﬁ ce for The North West Tel. (202) 690-1546 P.O. Box 20100 Cunard Building Fax: (202) 690-1171 Montgomery AL 36120 Water Street Email: [email protected] USA Liverpool L3 1QB Tel. (334) 244-1800 England PROCEEDINGS OF THE 63RD PLENARY MEETING 55

Fax: (334) 271-4338 Observers Member Countries Rua 87, no. 662 Email: [email protected] Sector Sur Goiania, 74093-300 Australia Uzbekistan Brazil Mr Michael Ford Tel. (55-62) 278-1319 Mr Bokhodir Khalilov Director Fax: (55-62) 278-1313 Head of World Marketing & Strategic Forecasts Goenka-Impex Australia P/L Email: [email protected] Dept P. O. Box 2729 Agency for Foreign Economic Relations Toowoomba, Queensland 4350 Mr Aluizio Boem Oliveira Shevchenko Street, 1 Australia AMPA Tashkent 700029 Tel. (61-746) 388-788 Asociacao Matogrossense dos Productores de Uzbekistan Fax: (61-746) 388-900 Algodao Email: [email protected] Rua B, Esquina com Rua 2 Mr Bakhtiyor Ibragimov Edifi cio Famato, CPA Counselor for Economy and Trade Mr Jamie Seccombe Cuiaba, MT 78050-970 Embassy of Uzbekistan Sales Executive Brazil 1746 Massachusetts Ave. NW Macquarie Bank Limited Tel. (55-65) 644-1800 Washington DC 20009 Agricultural Commodities, Level 1 Fax: (55-65) 644-1800 USA No. 1 Martin Place Tel. (202) 530-7299 Sydney, NSW 2400 Mrs Maria Fatima Grossi Sa Fax: (202) 293-6804 Australia AMPA Email: [email protected] Tel. (61-2) 6757-2000 Asociacao Matogrossense dos Productores de Fax: (61-2) 6752-5281 Algodao Mr Valeriy Ustyugin Email: [email protected] Rua B, Esquina com Rua 2 General Director Edifi cio Famato, CPA Uzbek Center for Certifi cation of Cotton Fiber Cuiaba, MT 78050-970 SIFAT Brazil Brazil 109 Uygur Str Mr Norberto Abreu Tel. (55-65) 644-1800 Kizil Shark Blind Alley Vice President Fax: (55-65) 644-1800 Tashkent AMIPA Uzbekistans Minas Gerais State Cotton Growers Assoc. Mr Alvaro Lorenco Salles Brazil AMPA Mr Toir Yuldashev Asociacao Matogrossense dos Productores de Senior Specialist Mr Carlos Ernesto Augustin Algodao Cabinet of Ministry of the Rp. of Uzbekistan AMPA Rua B, Esquina com Rua 2 Tashkent Asociacao Matogrossense dos Productores de Edifi cio Famato, CPA Uzbekistan Algodao Cuiaba, MT 78050-970 Rua B, Esquina com Rua 2 Brazil Zimbabwe Edifi cio Famato, CPA Tel. (55-65) 644-1800 Cuiaba, MT 78050-970 Fax: (55-65) 644-1800 Mr Sylvester Robert Nguni Brazil Managing Director Tel. (55-65) 644-1800 Mr Washington Luis Senhorelo The Cotton Company of Zimbabwe Fax: (55-65) 644-1800 President 11, Lytton Dr. Workington FUNDACAO GO P.O. Box 2697 Mr Paulo Cesar da Cunha Peixoto Rua 87, no. 662 Harare Executive Director Sector Sur Zimbabwe AGOPA Goiania, 74093-300 Tel. (263-4) 726-902 Rua 87, NO. 662, Sector Sur Brazil Fax: (263-4) 708-573 Goiania 60, 74093-3000 Tel. (55-62) 278-1319 Email: [email protected] Brazil Fax: (55-62) 278-1313 Tel. (55-62) 278-1319 Email: [email protected] Mr Happymore Mapara Fax: (55-62) 278-1319 Managing Director Email: [email protected] Mr Decio Tocantins The Cotton Company of Zimbabwe Ltd AMPA 1 Lyton Road Workington Mr Roberio Feffeira Dos Santos Asociacao Matogrossense dos Productores de Harare Manager Algodao Zimbabwe EMBRAPA Rua B, Esquina com Rua 2 Tel. (263-04) 748-901 Rua 87, no. 662 Edifi cio Famato, CPA Fax: (263-04) 708-573 Sector Sur Cuiaba, MT 78050-970 Email: [email protected] Goiania, 74093-300 Brazil Brazil Tel. (55-65) 644-1800 Tel. (55-62) 278-1319 Fax: (55-65) 644-1800 Fax: (55-62) 278-1313 Email: Email: [email protected] Mr Inacio Urban Mr Osvaldo Pinto Fiuza President President AMIPA FIALSO Minas Gerais State Cotton Growers Assoc. Brazil 56 NOVEMBER-DECEMBER 2004

Mr Antonio Vidal Esteve Alcotan Cotton Trading & Exports Co. Egypt Trader 16 Sesostris St. Tel. (20-2) 417-71034 Esteve SA P.O. Box 461 Fax: (20-2) 291-6570 Av. Dr. Chucri Zaidan 80, 4o Alexandria São Paulo, CEP 04583-110 Egypt Mr Ibrahim Sho Englandry Brazil Tel. (20-3) 487-0798 General Manager Tel. (55-11) 5508-8400 Fax: (20-3) 487-9601 North Delta Agriculture Company Email: [email protected] Email: [email protected] 195 26th July Street. Agouza Côte d’Ivoire Mr. Ahmed Elbosaty Cairo, 12411 General Manager Egypt Mr Anupam Gupta Modern Nile Cotton Co. Tel. (20-2) 302-8689 Country Manager Export Sales Dept. Fax: (20-2) 344-5080 Olam Ivoire Sarl 68 Gameat Al Dowal Al Arabia str. Email: [email protected] 15 BP 200 Mohandessin Abijan-15 Giza, 12311 France Côte d’Ivoire Egypt Tel. (225) 212-141-41 Tel. (20-2) 336-1516 Mr Thierry Devilder Fax: (225) 212-141-42 Fax: (20-2) 336-1481 General Manager Email: [email protected] Email: [email protected] Devcot S.A. 19 rue Eugene Jacquet Egypt Mr. Ahmed Elhami Lille, 59000 Ass. Export Manager France Mr. Amin Abaza Modern Nile Cotton Co. Tel. (33-320) 154-070 Managing Director Export Dept. Fax: (33-320) 063-880 Modern Nile Cotton Co. 68, Gameat Al Dowal Al Arabia Str. Email: [email protected] 68 Gameat Al Dowal Al Arabia Str. Giza, 12311 Mohandessin Egypt Mr Charles-Henri Jannet Giza, 12311 Tel. (20-2) 336-4031 Cotton Trader Egypt Fax: (20-2) 3361-481 Ecom Agroindustrial Corp Ltd Tel. (20-2) 336 -1516 Email: [email protected] Pully Cotton Trading Dpt Fax: (20-2) 336-1481 Av Guillemin 16 Email: [email protected] Mr Wagdy Hendy Pully, 1009 Chairman & Managing Director Switzerland Mr Mamdouh Abdel Sattar Port Said Cotton Export Co. Tel. (41-21) 721-7230 Chairman & Managing Director 71 Nebi Daniel Street Fax: (41-21) 711-1077 Eastern Cotton Company Alexandria, 21511 Email: [email protected] Borg El Saghr Building Egypt Saﬁ a Zaghloul Square Tel. (20-3) 487-2969 Mr Comlan Legba Alexandria Fax: (20-3) 485-2774 Manager Egypt Email: [email protected] Jenn & Associates Tel. (20-3) 3920-002 8 Bd Pasteur Fax: (20-3) 3913-494 Mr Mohamed Ibrahim El Sayed Bry-Sur-Marne, 94360 Email: eastern-cotton @dataxprs.com.eg Chairman & Managing Director France Alexandria Commercial CO. S.A.E. Tel. (33-1) 4516-9985 Mr Abdel Salam Badr el Din 1 Dr Ahmed Abdel Salam Str Fax: (33-1) 4706-0372 Al Kahira Cotton Co Alexandria Email: [email protected] 12 Mohamed Talaat Nooman St Egypt Alexandria Tel. (20-3) 486-5983 Mr Paul Martin Grzybowski Egypt Fax: (20-3) 484-7368 Manager Tel. (20-3) 480-5418 Email: [email protected] COPACO Fax: (20-3) 480-9975 Trading Dept. Email: [email protected] Mr Adel Leheta 11 Rue de Monceau Chairman Paris, 75008 Mr Moataz El Edkawi Trustco Imp & Exp France Deputy Manager Management Dept. Tel. (33-1) 539-31600 Edcotton Export Co. Sidi Gaber Towers Fax: (33-1) 539-31650 12 Boursa Kadima st 3rd Tower, 5th ﬂ oor Email: [email protected] Alexandria Alexandria, 00203 Egypt Egypt Mr Diddier Mercier Email: [email protected] Tel. (2-03) 427-3334 General Manager Fax: (2-03) 429-9224 COPACO Mr Zaki el Edkawi Email: [email protected] Trading Dept. Chairman 11 Rue de Monceau Edcotton Export Co. Mr Ezz EL-Din Mohamed Paris, 75008 12 Boursa Kadima st Chairman France Alexandria Arab Trade & Investment Co. & Cotton Trading Tel. (33-1) 539-31600 Egypt ATICOT Fax: (33-1) 539-31650 18 Yakoub Arteeen St. Email: [email protected] Mr Mohamed El Feky Heliopolis, Cairo Chairman & Managing Director PROCEEDINGS OF THE 63RD PLENARY MEETING 57

Mr Claude Vernier Mr. Shekhar Agarwal Imambada Road International Sales Vice Chairman Nagpur, 440018 Lummus Corporation The Indian Cotton Mills’ Federation India 62, Rue Brancion M/S. Maral Overseas Limited Tel. (91-712) 2720-071 Paris, 75015 Lnj Bhilwara Group, Bhilwara Towers Fax: (91-712) 2728-050 France A-12, Sector -1 Email: [email protected] Tel. (33-1) 4533-88-14 Noida, 201301 Email: [email protected] India Mr T. R. Balamurali Krishna Tel. (91-120) 254-206 Senior Manager Germany Fax: (91-120) 253-1648 Lakshmi Machine Works Ltd. Email: [email protected] Coimbatore, Tamil Nadu Mr Axel S. Herrmann India Head of Institute Mr Upender Kumar Agarwal Faserinstitut Bremen e.V. ADDL. Managing Director Mr. Bhadra Kumar Bangdiwala Am Biologischen Garten 2 Suryalakshmi Cotton Mills Ltd. Partner Gebäude IW 3 Surya Towers, 6th Floor M/s. B. Shripatlal Bangdiwala & Co. Bremen, 28359 105 S .P. Road 4, Jadhav Bhuvan, 1st Floor Germany Secunderabad, Andhra Pradesh 500 047 Dr. D’ Silva Road, Dadar (WR) Tel. (49-421) 218-3330 India Mumbai, 400 028 Fax: (49-421) 218-3110 Tel. (91-40) 2781-9856 India Email: [email protected] Fax: (91-40) 2784-6854 Tel. (91-22) 2422-4650 Email: [email protected] Fax: (91-22) 2430-2762 Dr. Thomas Schneider Email: [email protected] Deputy Institute Leader Mr. T.N. Ananda Redy Faserinstitut Bremen e.V. Managing Director Mr. Manoj Kumar Bangdiwala Am Biologischen Garten 2 Cheslind Textiles Ltd. Partner Gebäude IW 3 No. 8, 8th Main, 4th Block M/s. B. Shripatlal Bangdiwala & Co. Bremen, 28359 Koramangala 4, Jadhav Bhuvan, 1st Floor Germany Bangalore, 560034 Dr. D’ Silva Road, Dadar (WR) Tel. (49-421) 360-8921 India Mumbai, 400 028 Fax: (49-421) 339-8499 Tel. (91-80) 553-8622 India Email: [email protected] Fax: (91-80) 553-859 Tel. (91-22) 2422-4650 Email: [email protected] Fax: (91-22) 2430-2762 Mr Axel Trede Email: [email protected] General Manager Mr. Atul Asher Albrecht, Tuller-Pearse & Co Managing Partner Mr. Raju Barwale Wachstr. 17-24 Ravji Shamji Asher Managing Director Bremen, 28195 87/89 Century Plaza, D.B. Road, R.S. Puram Maharashtra Hybrid Seeds Co. Ltd. Germany Coimbatore, Tamil Nadu 641002 Resham Bhavan, 4th Floor Tel. (49-421) 363-100 India 78 Veer Nariman Road, Church Gate Fax: (49-421) 363-1011 Tel. (91-422) 255-5940 Mumbai, 400 020 Email: [email protected] Fax: (91-422) 255-4594 India Email: [email protected] Tel. (91-22) 2204-3020 India Fax: (91-22) 2204-7871 Mr V.B. Patel Babubhai Email: [email protected] Mr Jeetender Kumar Agarwal Chairman Executive Director All India Co-operative Cotton Federation Ltd. Mr Amal Kumar Basu Suryavanshi Spinning Mills Ltd. 408-E, Saka-I, OPP Advisor Adminstration Dept. Nehru Bridge The Cotton Corporation of India Ltd. 105,S.P Road, 6th ﬂ oor Ahmedabad, 380 009 Kapas Bhavan, Plot no. 3a Surya Towers India Sector 10 CBD Belapur Secundrabad Tel. (91-79) 265-81730 Mumbai, Maharasthra 400614 Andhra Pradesh 500 003 Fax: (91-79) 265-82286 India India Email: [email protected] Tel. (91-22) 275-61560 Tel. (91-40) 2784-3333 Fax: (91-22) 275-76030 Fax: (91-40) 278-15135 Mr Manoj Bajaj Email: [email protected] Secretary Cum Deputy General Manager Mr Arun Bhargava The Cotton Corporation of India Ltd. Regional Sales Manager Mr Pradeep Kumar Agarwal Finance Dept. Premier Polytronics Pvt. Ltd. Deputy General Manager Kapas Bhavan, Plot No 3a Coimbatore The Cotton Corporation of India Ltd. Sector 10, CBD Belapur India Sales Dept. Mumbai, 400614 Kapas Bhavan, Plot No 3a India Mr. Shyamal Bhattacharjee Sector 10, CBD Belapur Tel. (91-22) 275-80304 General Manager Mumbai, 400614 Fax: 991-22) 275-79219 The Cotton Corporation of India Ltd. India Email: dgmﬁ [email protected] Kolkata Branch Tel. (91-22) 2757-9495 Constantia, 3rd Floor, 11 Fax: (91-22) 275-79219 Mr Rohit Bajaj Dr. U.N.Brahmachari Street Email: [email protected] Managing Director Kolkata Bajaj Steel Industries Ltd. India 58 NOVEMBER-DECEMBER 2004

Tel. (91-33) 2281-1160 Mr. Sanjay Champalal Chauhan Churchgate Fax: (91-33) 2281-2953 Partner Mumbai, Maharashtra 400 020 Email: [email protected] M/s. Ramesh & Co. India S/33, Cotton Exchange Building Tel. (91-22) 2287-3891 Mr. Kiran Dhanji Bheda Cotton Green Fax: (91-22) 2204-4494 M/s. Dhanji Bhawanji & Co Mumbai, 400 033 Email: [email protected] B-101, Cotton Exchange Building India Cotton Green Tel. (91-22) 2371-1617 Mr. R. K. Dalmia Mumbai, 400 033 Fax: (91-22) 2370-0089 President India Email: [email protected] Century Textiles & Industries Ltd. Tel. (91-22) 2370-0560 Century Bhavan Fax: (91-22) 2370-0561 Mr. Kishor K. Chheda Dr. Annie Besant Road, Worli Email: [email protected] Partner Mumbai, 400018 M/s. Asian Cotton Company India Mr. Abhishek Bhura B-60, Cotton Exchange Building Tel. (91-22) 2495-7000 General Manager Cotton Green Fax: (91-22) 2430-9491 M/s. Navjyot International Mumbai, 400 033 Email: [email protected] B-117, Mittal Tower, 11th Floor India Nariman Point Tel. (91-22) 2374-4206 Dr. Harsharan Das Mumbai, 400 021 Fax: (91-22) 2568-0115 Additional Textile Commissioner India Offi ce of Textile Commissioner Tel. (91-22) 2283-4918 Mr Mani Chinnaswamy 48, New C.G.O. Building Fax: (91-22) 2283-4906 Managing Parther New Marine Lines Appachi Cotton Co. Mumbai, 400020 Mr Ram D. Bohra 4 Meekari Road India Managing Director Zamin UthEnglanduli Tel. (91-22) 2200-3918 M/S. Cotton Plants (India) Pvt Ltd. Polachi, Tamilnadu Fax: (91-22) 2200-4693 706, Acme Plaza, OPP. India Email: [email protected] Sangam Talkies, Andheri-Kurla Road Email: [email protected] Andheri (East) Mr Satya Narayan Dash Mumbai, 400059 Mr. Radhamohan Chokhani Section Offi cer India Proprietor Government of India Tel. (91-22) 2826-4201 M/s. Bansidharji Radhamohan Ministry of Textiles Fax: (91-22) 2834-6161 607, Niranjan Building Room NO. 455a Email: [email protected] 99 Netaji Subash Road Udyog Bhavan Mumbai, 400 002 New Delhi, 110011 Mr. Ramanujdas Boob India India Director Tel. (91-22) 2281-8059 Tel. (91-11) 230-11330 M/s. Vishal Cotspin Ltd. Fax: (91-22) 2281-8059 Fax: (91-11) 230-13154 12-7-170/2, Industrial Area Email: [email protected] Email: [email protected] Hyderabad Road Raichur, 584 101 Mr Dipan Choksey Mr Malhar Dave India Trader Assistant Manager Tel. (91-853) 223-5155 C.A. Galiakotwala & Co. Pvt. Ltd. C.A. Galiakotwala & Co. Pvt. Ltd. Fax: (91-853) 223-5219 66, Maker Chambers III 70, White House Email: [email protected] Nariman Point Panchvati Circle, Ellisbridge Mumbai, 400 021 Ahmedabad, 380 008 Mr Saktiprasad Chakrabarty India India Director Tel. (91-22) 2284-3758 Tel. (91-79) 2642-0881 Offi ce of the Textile Commissioner Fax: (91-22) 2204-8801 Fax: (91-79) 2644-3293 48, New C.G.O. Building Email: [email protected] New Marine Lines Mr Sunil Dave Mumbai, 400020 Mr. Hiren Daga Manager India Managing Partner U.B. Cotton Pvt. Ltd. Tel. (91-22) 2209-5359 Ashok D Daga Indian Globe Chambers, 7th Floor Fax: (91-22) 2200-4693 Cotton Traders 142 W.H. Marg. Email: [email protected] 145,Ponnurangam Road West Mumbai, 400 001 R S Puram India Mr. Udaykumar Srinivasan Chari Coimbatore, 641002 Tel. (91-22) 2261-1974 Sr. General Manager (Purchase) India Fax: (91-22) 2261-2967 M/s. Group Ashima Tel. (91-422) 2547-973 Email: [email protected] Texcellence Complex Fax: (91-422) 254-8678 Khokhara Email: [email protected] Dr Ashok Desai Mehmedabad Director Ahmedabad, 380 021 Dr Leena Dalal The Bombay Textile Research Association India Partner L.B.S. Marg Tel. (91-79) 2277-3513 Amersey Damoder Ghatkopar (West) Fax: (91-79) 2277-3061 Raw Cotton Dept. Mumbai, Maharashtra 400086 Email: [email protected] Green Fields, Groun fl oor, 134 India Maharosjo Larve Rd, Tel. (91-22) 2500-2766 PROCEEDINGS OF THE 63RD PLENARY MEETING 59

Fax: (91-22) 2500-0459 Ludhiana, Punjab 141 011 Bharatgarh Road, Nalagarh Email: [email protected] India Distt. Solan (H.P.) Tel. (91-161) 264-0741 Nalagarh, 174 101 Mr Bharat Desai Fax: (91-161) 2601048 India Senior Vice President Email: [email protected] Tel. (91-1795) 222-579 Reliance Industries Ltd Fax: (91-1795) 222-287 Reliance Center A Wing, 2nd Floor Mr. Prashant Didwaniya Email: [email protected], 19, Walchand Hirachand Marg Ballard Estate Managing Director Mumbai Le Merite Exports Pvt Ltd. Mr Nilesh Goradia India Marketing Dept. Manager A-301, Gulab View Society C.A. Galiakotwala & Co. Pvt. Ltd. Mr Dhirajlal Desai Kadam Wadi Road 70, White House Regional Director Marol Pipe Line , Andheri (East) Panchvati Circle C.A. Galiakotwala & Co. Pvt. Ltd. Mumbai, Maharashtra 400059 Ellisbridge P.O. Box no. 3741 India Ahmedabad, 380 008 1055/20 Gowtham Centre Tel. (91-22) 2837-6592 India 3rd Floor, Avanshi Road Email: [email protected] Tel. (91-79) 2644-2840 Coimbatore, 641 018 Fax: (91-79) 2644-3293 India Dr. Venkatrao Gadwal Email: [email protected] Tel. (91-422) 539-2005 Consultant Fax: (91-422) 221-2068 Mahyco Research Foundation Mr Naveen Gordhanbhai Patel Email: [email protected] Resham Bhavan, 4th Floor, 78 Director Veer Nariman Road Pasand Exports Pvt Ltd Ms Prerana Desai Mumbai, 400020 201 Narayan Complex OPP Havmor Research Analyst - Cotton India Navrangpura, Ahmedabad Refco Commodities India Pvt. Ltd. Tel. (91-22) 220-49497 India No 1, C-Block Fax: (91-22) 220-47871 Modern Mills Compound Mr. P. K. Gothi Mumbai, Maharashtra 400 011 Mr. M.P. Gajaria Morarjee Goculdas Spg. & Wvg. Co. Ltd. India Advisor Dr. Ambedkar Road, Parel Tel. (91-22) 5667-9926 M/s. GTN Textiles Ltd. Mumbai, 400012 Fax: (91-22) 5667-9977 46, Mittal Chambers India Email: [email protected] 4th Floor, 228 Tel. (91-22) 2413-0021 Nariman Point Fax: (91-22) 2416-6527 Mr Ranjit Singh Dhillon Mumbai, 400 021 Email: [email protected] Director India AVI Ginning Machinery Pvt. Ltd Tel. (91-22) 2202-1013 Mr Deepesh Govil L-146 GIDC, ODHAV Fax: (91-22) 2287-4144 Manager Fibers East Asia Ahmedabad Email: [email protected] SGS India Ltd. India 4 B, ADI Shaunaracharya Marg Email: [email protected] Mr Pawan Kumar Garg Vikhroli General Manager Mumbai, 400 023 Mr Gursharan Sing Dhiman Gontermann-Peipers India Ltd. India Director Raw Materials Dept. Tel. (91-22) 579-8421 Nahar Group of Companies Bharat Garh Rd. Fax: (91-22) 577-5546 Corporate Raw Material Div. Nalagarh, Himachal Pardesh 91174101 Email: [email protected] ‘Nahar Tower’, Industrial Area -A India Ludhiana, Punjab 141 003 Tel. (91-1795) 222-282 Mr Subhash Chander Grover India Fax: (91-1795) 222-287 Director Tel. (91-161) 250-01118 Email: [email protected] The Cotton Corporation of India Ltd. Fax: (91-161) 260-1956 Purchase & Sales Dept. Email: [email protected] Mr Subshash Garg Kapas Bhavan, Plot No. 3a Chief Executive Sector 10, CBD Belapur Mr. Suresh Dholakia M/S Rajasthan SPG and WVG Mills Ltd. Mumbai, 400614 Director Mandpam India M/s. Wakeﬁ eld Inspection Services Pvt. Ltd. Bhilwara, Rajasthan 311001 Tel. (91-22) 275-76088 B-76, Cotton Exchange Building India Fax: (91-22) 275-79219 1st Floor, Cotton Green (East) Tel. (91-1482) 249-024 Email: [email protected] Mumbai, 400 033 Fax: (91-1482) 249-030 India Email: [email protected] Mr. Pradeep Vitthalas Gujarathi Tel. (91-22) 2372-7700 Director Fax: (91-22) 2373-3569 Mr Bipin Ghandi M/s. Vitthaldas Govardhandas Ginners Pvt. Ltd Email: [email protected] Simla House, D Block, Falt 301/B S/23, Cotton Exchange Building Mumbai Cotton Green Mr. Inder J. Dhuria India Mumbai, 400 033 Corporate General Manager India Vardhman Spg. & Gen. Mills Ltd. Mr. Samir Kumar Ghosh Tel. (91-22) 2374-6400 Raw Materials & Commercials Executive Director Fax: (91-22) 2374-6500 Chandigarh Road M/s. Gontermann Peipers Ltd. Email: [email protected] 60 NOVEMBER-DECEMBER 2004

Mr Narendra Gupta Charanjit Rai Marg Fort Mumbai, 400 021 Product Development Mumbai, 400 001 India Nat'l Commodity & Derivatives Exchange Ltd. India Tel. (91-22) 2283-0036 Exchange Plaza Tel. (91-22) 2209-4852 Fax: (91-22) 2265-2783 Bandra -Kurla Complex Fax: (91-22) 2200-7378 Email: [email protected] Mumbai Email: [email protected] India Mr Ravi K. Jhunjhunwala Mr Rikhab Chand Jain Partner Mr. Rajindra Kumar Gupta Chaiman & Managing Director Nirmal Udhyog Company Deputy General Manager T. T. Ltd. 45, Maker Chambers III The Cotton Corporation of India Ltd. Administration, Production, Export Dept. 223 Nariman Point Aurangabad Branch 879, Master Prithvin Nath Marg Mumbai, 400 021 Chandra Mauli Building, Plot No.27 OPP: Ajmal Khan Park India Shahanoor Vadi Road Karol Bagh Tel. (91-22) 2283-0036 Veer Savarkar Chowk, Samrat Nagar New Delhi, 110005 Fax: (91-22) 2265-2783 Aurangabad, 431005 India Email: [email protected] India Tel. (91-11) 515-45881 Tel. (91-240) 236-1451 Fax: (91 11) 236-32283 Mr Jestin Jose Fax: (91-240) 236-1834 Email: [email protected] Assistant Manager Email: [email protected] C.A. Galiakotwala & Co. Pvt. Ltd. Mr Rajaram Jaipuria Plot Number 359, Mr Prafulchandra Hirji India 11 Main Road. K.K. Nagar Director Madurai, 325 020 Amardeep Traders Mr. G. Jawahar India c/o Vijay Shah Director Tel. (91-452) 258-202 509 B-2 Laram Center M/s. G. Jawahar Enterprises Fax: (91-452) 258-4203 24 S.V. Road 141/71,T.V. Samy Road Email: galiakotwala-mi@@vsnl.com Andheri West, Mumbai 400 058 R.S. Puram India Coimbatore, 641 002 Mr Moreshwar Joshi Email: [email protected] India Adviser Tel. (91-422) 254-7116 The Indian Cotton Mills’ Federation Mr K.R.K. Iyer Fax: (91-422) 254-7115 15/8, MEnglandund Iron Staff CHS Consultant Email: [email protected] Gavan Pada, Mulund (East) The Cotton Corporation of India Ltd. Mumbai, 400081 Technology Mission on Cotton Mr Umesh Chandra Jha India Air India Building, 12TH Floor Chief General Manager Tel. (91-22) 2567-9864 Nariman Point The Cotton Corporation of India Ltd. Mumbai, 400021 New Delhi Branch Mr. Rajeev Joshi India 604, Ansal Bhavan Deputy Manager Tel. (91-22) 220-22805 K.G.Marg, The Cotton Corporation of India Ltd. Fax: (91-22) 220-25130 New Delhi, 110001 Planning & Statistics Email: [email protected] India Kapas Bhavan, Plot No 3a Tel. (91-11) 233-24081 Sector 10, CBD Belapur Mr. VIishwanath Jagdale Fax: (91-11) 233-24081 Navi Mumbai, 400614 Deputy General Manager Email: [email protected] India Raymond Limited, Denim Division Tel. (91-22) 2757-9217 Denim Division Mr. Bharat Jhunjhunwala Fax: (91-22) 2757-9219 C/1, Midc, Lohara Village Partner Email: [email protected] Yavatmal, 445001 M/s. Riddhi Siddhi Developers India 45 Maker Chambers III Mr Shyam Joshi Tel. (91-7232) 249-241 223 Nariman Point Executive Director & Secretary General Fax: (91-7232) 249-237 Mumbai, 400 021 East India Cotton Association Email: [email protected] India Cotton Exchange Building, 2nd ﬂ oor Tel. (91-22) 2283-0036 Cotton Green Mr Anil Jain Fax: (91-22) 2285-2783 Mumbai, 400 033 General Manager Email: [email protected] India The Cotton Corporation of India Ltd. Tel. (91-22) 2370-4401 Internal Audit Dept. Mr. Justice S.M. Jhunjhunwala Fax: (91-22) 2370-0337 Kapas Bhavan, Plot No. 3a Former Judge of Bombay High Court Email: [email protected] Sector 10, CBD Belapur 49, Bhupen Chambers Mumbai, 400614 Dalal Street Mr. Anil Jagdishchandra Kakkar India Mumbai, 400 023 General Manager Tel. (91-22) 275-48402 India M/S. Excel Crop Care Ltd. Fax: (91-22) 275-76069 Tel. (91-22) 2267-1971 Marketing Dept. 184-87, S.V. Road, Jogeshwari (West) Mr. Brijlal Jain Mr Niranjan P. Jhunjhunwala Mumbai, 400102 Director- Textile Partner India M/s. Forbes Gokak Ltd. Jhunjhunwala Company Tel. (91-22) 2872-3865 Forbes Building 45, Maker Chambers III Fax: (91-22) 2873-5611 223 Nariman Point Email: [email protected] PROCEEDINGS OF THE 63RD PLENARY MEETING 61

Mr Ashok Kapoor Mr. Pankaj Kotak Mr Girdharilal Lath General Manager Chairman Chairman The Cotton Corporation of India Ltd. M/s. Kotak Agencies Pvt. Ltd. Euro Vistaa Coimbatore Branch 311, Lotus House India 1057, Trichi Rd 33A V. Thackercy Marg Tel. (91-22) 2283-4617 Ramanathapuram New Marine Lines Fax: (91-22) 2204-0699 Coimbatore, 641045 Mumbai, 400 020 Email: [email protected] India India Tel. (91-422) 231-1746 Tel. (91-22) 2209-2139 Mr Prabhakar Rao M. Fax: (91-422) 231-7146 Fax: (91-22) 2209-2142 Managing Director Email: [email protected] Email: [email protected] Nuziveedu Seeds India Mr Ashok Kapur Mr. Vinay Kotak General Manager - Northern Zone Executive Director Mr. Awtar Krishan Madan Khimji Visram & Sons Kotak & Co Ltd. Vice President (Operations) Commission Dept. Navsari Building M/s. Gontermann Peipers Ltd. 21 Mittal Chambers 240 Dr. D.N. Road, Fort Bharatgarh Road, Nalagarh 228 Nariman Point Mumbai Distt. Solan (H.P.) Mumbai, 400 021 India Nalagarh, 174 101 India Tel. (91-22) 2207-3331 India Tel. (91-22) 2202-1874 Fax: (91-22) 2207-2267 Tel. (91-1795) 222-579 Fax: (91-22) 2204-1586 Email: [email protected] Fax: (91-1795) 222-287 Email: [email protected] Email: [email protected] Mr Ashish Kumar Mr Unupom Kausik General Manager Mr Janak Madhavdas Arvind Mills Ltd. The Cotton Corporation of India Ltd. Deputy Manager Ahmedabad, Gujarat International Trade Dept. Mitsubishi Corporation India Pvt Ltd India Kapas Bhavan, Sector 10 Express Towers, 11th ﬂ oor Plot no. 3A, CBD Belapur Nariman Point, Mumbai 400 021 Mr Raj Kumar Kedia Mumbai, 400614 India Chief General Manager India Tel. (91-22) 5656-9272 The Cotton Corporation of India Ltd. Tel. (91-222) 757-6043 Fax: (91-22) 2202-4590 Finance Dept. Fax: (91-222) 757-6030 Email: [email protected] Kapas Bhavan, Plot 3a Email: [email protected] Sector 10, CBD Belapur Mr Ajay Mahajan Mumbai, 400614 Mrs Rita Kumar Executive Assistant to CMD India General Manager Vardhman Polytex Ltd. Tel. (91-22) 2757-6078 The Cotton Corporation of India Ltd. 341, K-L, Mundian Khurd Fax: (91-22) 2757-6069 Administration / Hindi Dept. P.O. Sahabana, Chandigarh Road Email: cgmﬁ [email protected] Ka[as Bhavan, Plot No. 3a Ludhiana, Punjab 141123 Sector 10, CBD Belapur India Mr Shadi Lal Khanna Mumbai, 400614 Tel. (91-161) 268-5301 Deputy General Manager India Fax: (91-161) 505-2439 The Cotton Corporation of India Ltd. Tel. (91-22) 2757-6083 Email: [email protected] Kapas Bapas Bhavan Fax: (91-22) 2757-6030 3A, Sector 10, CBD Belapur Email: [email protected] Mr Prakash Maheshwari Mumbai, 400614 Chief Executive India Mr Jitender Kumar Makol M/S Rajasthan SPG and WVG MIills Ltd. Tel. (91-22) 2757-6085 Manager Village Lodha Fax: (91-22) 275-79219 Vardhaman Spg & Gen Mills Ltd Bhilwara, Rajasthan 327001 Email: [email protected] Raw Materials & Commercials India Chandigarh Road Tel. (91-2962) 254-321 Mr Arvind K. Kikani Ludhiana, 141 011 Fax: (91-2962) 255-442 M/s. Sri Asoka Textiles Ltd. India Email: [email protected] 1105, Raheja Chambers Tel. (91-161) 2640-741 11th Floor, Nariman Point Fax: (91-161) 2601-048 Mr. Shyam M. Makharia Mumbai, 400 021 Email: [email protected] Managing Partner India M/s. Mahaveer Prasad Makharia Tel. (91-22) 2204-9185 Mr. M.B. Lal Dariya Mahal,’A’ 2nd Floor Fax: (91-22) 2204-9297 Managing Director 80, Nepean Sea Road M/s. Shail Exports Pvt. Ltd. Mumbai, 400 006 Mr Mayur A. Kikani 12, National House India M/s. Sri Asoka Textiles Ltd. 27, Raghnunath Tel. (91-22) 2386-6548 1105, Raheja Chambers Dadaji Street, Fort Fax: (91-22) 2382-1483 11th Floor, Nariman Point Mumbai, 400 001 Email: [email protected] Mumbai, 400 021 India India Tel. (91-22) 2261-3112 Mr. Hiralal P. Malani Tel. (91-22) 2204-9185 Fax: (91-22) 2261-6893 Vice President Fax: (91-22) 2204-9297 Email: [email protected] The South India Cotton Association 62 NOVEMBER-DECEMBER 2004

477, Kamarajar Road 262/270 Nasri Natha Street Fax: (91-33) 2210-2953 Uppilipalayam Post Masjid Bunder Email: [email protected] Coimbatore, 641015 Mumbai, 400 009 India India Mr R.C. Modi Tel. (91-422) 257-3018 Tel. (91-22) 2347-5090 General Manager Fax: (91-422) 257-2115 Fax: (91-22) 2345-6780 The Cotton Corporation of India Ltd. Email: [email protected] Email: [email protected] Vigilance Dept. Kapas Bhavan, Pot No. 3a Mr Prabhakar Rao Mandava Mr. Pankaj Mepani Sector 10, CBD Belapur Managing Director General Manager (R.M) Mumbai, 400614 Nuzuveedu Seeds Ltd. M/s. Forbes Gokak Ltd. India 7C, Surya Towers Khatau House Tel. (91-22) 2756-0576 S.P.Road Mogul Lane Fax: (91-22) 2757-9219 Secunderabad, Andhra Pradesh 500003 Mumbai, Mahim 400 016 Email: [email protected] India India Tel. (91-40) 2789-8282 Tel. (91-22) 2444-2676 Mr. Mahesh T. More Fax: (91-40) 5532-1500 Fax: (91-22) 2445-5039 Manager (Import/ Export) Email: [email protected] Email: [email protected] M/s. U.B. Cotton Pvt. Ltd. 7th Floor Indian Globe Chambers Mr. T. M. Manjunath Mr. Kishorsinh Ramdas Mirani 142, W.H. Marg Director - R & D (Retired) Partner Mumbai, 400 001 Monsanto Holdings Pvt. Ltd. M/s. Khimji Visram & Sons India Monsanto Research Centre 21 Mittal Chambers Tel. (91-22) 2261-1974 “SUMA”, 174, G - Block, Sahakaranagar 228 Nariman Point Fax: (91-22) 2261-2967 Bangalore, Karnataka 560 092 Mumbai, 400 021 Email: [email protected] India India Tel. (91-80) 2363-5824 Tel. (91-22) 2202-1874 Mr. Hitesh Laxmidas Motiwala Fax: (91-80) 2363-5838 Fax: (91-22) 2204-1586 Partner Email: [email protected] Email: [email protected] M/s. Khimji Visram & Sons 21 Mittal Chambers Mr Anil Mathur Mr Nayan Mirani 228 Nariman Point Private Secretary Partner Mumbai, 400 021 Government of India Khimji Visram & Sons India Ministry of Textiles Commission Dept. Tel. (91-22) 2202-1874 Udyog Bhavan 21 Mittal Chambers Fax: (91-22) 2204-1586 Maulana Azad Rd 228 Nariman Point Email: [email protected] New Delhi, 110011 Mumbai, 400 021 India India Mr Nagesh Mugapur Tel. (91--11) 230-11769 Tel. (91-22) 2202-1874 Joint Textile Commissioner Fax: (91-11) 230-13681 Fax: (91-22) 2204-1586 Ofﬁ ce of Textile Commissioner Email: [email protected] Email: [email protected] 46, New C.G.O. Building New Marine Lines Mr. Bhadresh Mehta Mr. Anuj Mittal Mumbai, 400020 Partner Director India M/s. Bhadresh Trading Corporation M/s. Mittatex Expotrs Pvt. Ltd. Tel. (91-22) 2203-3383 205, Majestic Shopping Center S-8/9, Cotton Exchange Near Opera House Cotton Green (E) Mrs Prem Lata MEnglandhija Girgaum, 144 JSS Road Mumbai, 400 033 Director Mumbai, 400 004 India Ofﬁ ce of Textile Commissioner India Tel. (91-22) 2372-6792 48, New C.G.O. Building Tel. (91-22) 2380-0007 Fax: (91-22) 2378-1025 New Marine Lines Fax: (91-22) 2389-6467 Email: [email protected] Mumbai, 400020 Email: [email protected] India Mr Ashish Mittal Tel. (91-22) 220-31229 Mr. Bhavik Mehta MEP Cotton Fax: (91-22) 220-04693 Director Mittatex Exporters Pvt Ltd Email: [email protected] Soham Cotton Trading Pvt. Ltd. S08 Cotton Exchange Building B-108, Cotton Exchange Building, 2nd Floor Cotton Green Mr. Rajendra Mulani Cotton Green Mumbai Partner Mumbai, Maharashtra 400 033 India M/s. Khimji Poonja & Co. India 19-21, Dalal Street Tel. (91-22) 2371-34 80 Mr. Sanjay Mittal Fort, Wadia Building Fax: (91-22) 2371-2439 Director Mumbai, 400 001 Email: [email protected] M/s. Sunny Trexim Pvt. Ltd. India 813/ 814, Marshall House Tel. (91-22) 2267-1219 Mr. Jasubhai Mehta 33/1, N.S. Road Fax: (91-22) 2269-3996 Proprietor Kolkota, 700 001 Email: [email protected] M/s. Kiran Cotton Co. India 4, Anant Niwas, 1st Floor Tel. (91-33) 2220-1219 PROCEEDINGS OF THE 63RD PLENARY MEETING 63

Mr. D. K. Nair India Eurotex Industries & Exports Ltd. Secretary General Tel. (91-11) 2332-4081 Raheja Chambers, 12th Floor The Indian Cotton Mills’ Federation Email: [email protected] 213 Nariman Point Federation House, Tansen Marg Mumbai, 400 021 New DelhiI, 110001 Mr. Ashok D. Patel India India Cotton Incharge Tel. (91-22) 5630-1400 Tel. (91-11) 233-57246 M/s. Super Trading Co. Fax: (91-22) 2204-4139 Fax: (91-11) 233-57245 B-18, Cotton Exchange Building Email: [email protected] Email: [email protected] Cotton Green Mumbai, 400 033 Mr Siddharth Patodia Mr Madhavlal Oza India Senior Executive General Manager - Western Zone Fax: (91-22) 2371-9806 Eurotex Industries & Exports Ltd. Khimji Visram & Sons Raheja Chambers, 12th Floor Commission Dept. Mr Bhupendra Patel 213 Nariman Point 21 Mittal Chambers Joint Textile Commissioner (Cotton) Mumbai, 400 021 228 Nariman Point Offi ce of Textile Commissioner India Mumbai, 400 021 48, New Marine Lines Tel. (91-22) 5630-1400 India New C.G.O. Building Fax: (91-22) 2204-4139 Tel. (91-22) 2202-1874 Mumbai, 400020 Email: [email protected] Fax: (91-22) 2204-1586 India Email: [email protected] Tel. (91-22) 2203-7819 Mr Umang Patodia Fax: (91-22) 2200-4693 Director Mr. Gaynor Pais Email: [email protected] GTN Textiles Ltd. Chief Manager 43, Mittal Chambers, 4th Floor M/S. Excel Crop Care Ltd. Mr. Pesi Patel 228 Narman Point 184-87, S.V. Road, Jogeshwari (West) Director Mumbai, 400 021 Mumbai, 400102 M/s. Patel Brothers Services & Eng Pvt Ltd. India India 6, Elphinston Building Tel. (91-22) 220-21013 Tel. (91-22) 2872-3865 10, Veer Nariman Road Fax: (91-22) 2287-4144 Fax: (91-22) 2873-5611 Mumbai, 400 001 Email: [email protected] India Mr Vivek Phansalkar Tel. (91-22) 2204-1072 Chief Vigilance Offi cer Mr B. S. Pal Fax: (91-22) 2204-9178 The Cotton Corporation of India Ltd. Additional Textile Commissioner (Tech.) Email: [email protected] Kapas Bhavan, Plot No. 3a Offi ce of Textile Commissioner Sector 10, CBD Belapur 48, New C.G.O. Building Mr Anuj Patodia Mumbai, 400614 New Marine Lines Executive Director India Mumbai, 400020 Prime Textiles Ltd. Tel. (91-22) 275-65249 India 604, Raheja Chambers, 6th fl oor Fax: (91-22) 275-76030 Tel. (91-22) 220-33721 213, Nariman Point Email: [email protected] Fax: (91-22) 2200-2495 Mumbai, Majarashtra 400021 Email: [email protected] India Mr Pramod Pillewar Tel. (91-22) 2288-1001 Deputy General Manager Mr Dhiraj Pant Fax: (91-22) 2288-1002 The Cotton Corporation of India Ltd. Cotton Program Technical Lead Email: [email protected] Hubli Branch Monsanto India Ltd Branch Offi ce, NO. 4 Ahura Centre, 5th Floor Mr Binod Kumar Patodia Kutchi House, J.C. Nagar 96, Mahakali Caves Road Vice Chairman and Managing Director Hubli, Karnataka 580020 Andheri (East) GTN Textiles Ltd. India Mumbai 43, Mittal Chambers, 4th Floor Tel. (91-836) 226-3343 India 228 Narman Point Fax: (91-836) 236-8188 Email: [email protected] Mumbai, 400 021 Email: [email protected] India Dr. Kishore Paralikar Tel. (91-22) 220-21013 Mr T. S. Rajasekaran Head, Transfer of Technology Division Fax: (91-22) 2287-4144 Senior Manager Central Institute for Research on Cotton Technol- Lakshmi Machine Works Ltd. ogy Mr. Manoj Patodia Coimbatore Circot, Adenwala Road, Matunga Executive Director India Mumbai, 40019 M/s. Prime Textiles Ltd. India 604, Raheja Chambers, 6th Floor Mr T. P. Rajendran Tel. (91-22) 2532-0329 213, Nariman Point Central Institute for Cotton Research Fax: (91-22) 2413-0835 Mumbai, 400 021 Regional Station Email: [email protected] India Maruthamalai Road Tel. (91-22) 2288-1001 Coimbatore, Tamil Nadu 641003 Mr. Bharat Bhushan Passey Fax: (91-22) 2288-1002 India Offi cer on Special Duty (Protocol) Email: [email protected] Tel. (91-422) 245-1238 The Cotton Corporation of India Ltd. Fax: (91-422) 242-5021 604, Ansal Bhavan, 16 Mr Rajiv Patodia Email: [email protected] Kasturba Gandhi Marg, Executive Director New Delhi, 110001 64 NOVEMBER-DECEMBER 2004

Mr Sidhart Rajgopal Mr HasmEnglandhbhai C. Raval Mumbai, 400 021 Executive Director Director India Texprocil The Haryana State Co-Operative Supply & Mrkt. Tel. (91-22) 2284-3758 Mumbai Fed Ltd. Fax: (91-22) 2204-8801 India Hafed Corporate Offi ce Email: [email protected] Sector 5 Mr. A Ramani Panchkula, Haryana 13410 Mr. Chidanand Sankaram Hon. Joint Secretary India Offi cer The South India Cotton Association Tel. (91-172) 259-0518 M/s. Kotak & Co. Ltd. 477, Kamarajar Road Fax: (91-172) 259-0711 Navsari Building Uppilipalayam Post Email: [email protected] 240,D.N. Road Coimbatore, 641015 Mumbai, 400 001 India Mr. V. Ravichandran India Tel. (91-422) 2573-018 Vice President Tel. (91-22) 2207-3331 Fax: (91-422) 257-2115 The South India Cotton Association Fax: (91-22) 2207-2267 Email: [email protected] 477, Kamarajar Road Email: [email protected] Uppilipalayam Post Mr K. P. Rane Coimbatore, 641015 Dr. V. Santhanam Senior Executive India Director CU Inspections India Pvt Ltd. Tel. (91-422) 257-3018 The South India Cotton Association 402, Sagar Fortune, 184 Fax: (91-422) 257-2115 477, Kamarajar Road Waterfi eld Road, Bandra (West) Email: [email protected] Uppilipalayam Post Mumbai, 400050 Coimbatore, 641015 India Mr Santosh Roongta India Tel. (91-22) 640-0449 General Manager Tel. (91-422) 257-3018 Fax: (91-22) 641-3297 The Cotton Corporation of India Ltd. Fax: (91-422) 257-2115 Email: [email protected] Kapas Bhavan, Plot No 3a Email: [email protected] Sector 10, CBD Belapur Mr T. Bhanoji Rao Mumbai, 400614 Mr. Navinchandra C. Sayta General Manager India Propietor The Cotton Corporation of India Ltd. Tel. (91-22) 2756-5568 M/s. Chunilal Krishnalal & Co. Guntur Branch Fax: (91-22) 275-76030 608/618, Cotton Exchange Building Kapas Bhavan, P.B. NO. 227 Email: [email protected] Kalbadevi Road 4/2, Ashok Nagar Mumbai, 400 002 Guntur, 522002 Dr. Balasubramanya Rudrapatna India India Principal Scientist & Head Tel. (91-22) 2240-0946 Email: [email protected] Central Institute for Research on Cotton Tech. Chemical & Biochemical Processing Division Mr. Seethapathy Mr. Harish R. Rathi Adenwala Road, Matunga Chief Operating Offi cer Partner Mumbai, 400019 M/s. Super Spinning Mills. Ltd. M/s. Prakash Ranchhoddas Rathi India “ELGI Towers” B-34, Cottton Exchange Building Tel. (91-22) 2412-7273 P.B. 7133 Green Field Cotton Green Fax: (91-22) 2413-0835 737-D, Puliakulam Road Mumbai, 400 033 Email: [email protected] Coimbatore, 641 045 India India Tel. (91-22) 2378-1822 Mr. Shivprakash Kaluram Ruhatiya Tel. (91-422) 231-1711 Fax: (91-22) 5660-2334 Managing Director Fax: (91-422) 231-1611 Email: [email protected] M/s. Ruhatiya Spinners Pvt.Ltd. Email: [email protected] Kirana Bazar Mr Vikas Rathi Akola, Maharashtra 444001 Mr. Aditya Sekhsaria Partner India Proprietor Prakash Rathi & Co. Tel. (91-724) 243-0664 M/s. Dwarkadas Cotton.Com Sales Dept. Fax: (91-724) 243-0604 904, Tulsiani Chmbers, 9th Floor B-34,Cotton Exchange Building 212 Nariman Point Cotton Green East Mr. Brijesh Sampat Mumbai, 400 021 Mumbai, Maharashtra 400 033 M/s. Shree Sanjay Trading Company India India ‘B’ 93, Cotton Exchange Building Tel. (91-22) 2282-3770 Tel. (91-22) 2377-2683 Cotton Green Fax: (91-22) 2283-4284 Fax: (91-22) 5660-234 Mumbai 400 033 Email: [email protected] Email: [email protected] India Tel. (91-22) 2377-2896 Mr. Arun Sekhsaria Mr. Kesava Chandra Rau Fax: (91-22) 2671-4024 Director Director - Textiles Email: [email protected] M/s. Netbusiness Solutions India Ltd. Super Sales Agencies Ltd. 903, Tulsiani Chamber 34-A, Kamaraj Road Mr Umesh Sanghvi Nariman Point Coimbatore, 641 018 Trader Mumbai, 400 021 India C.A. Galiakotwala & Co. Pvt. Ltd. India Tel. (91-422) 222-2404 66, Maker Chambers III Tel. (91-22) 56301130 Fax: (91-422) 222-1835 Nariman Point Fax: (91-22) 2287-4260 Email: [email protected] PROCEEDINGS OF THE 63RD PLENARY MEETING 65

Mr. Pawan Kumar Sekhsaria N.M. Marg Tel. (91-22) 2204-1207 Incharge- Export/ Import Ballard Estate Fax: (91-22) 2204-1368 M/s. Satyanarayan Sekhsaria & Co. Mumbai, 400 038 Email: [email protected] (Divn. of Banarsilal Pvt. Ltd.) India 11A, Mittal Chambers Tel. (91-22) 2261-5001 Mr. Shirish Shah Nariman Point Fax: (91-22) 2262-0598 Partner Mumbai, 400 021 Email: [email protected] M/s. Bhaidas Cursondas & Co. India 16, Bombay Samachar Marg Tel. (91-22) 2202-2930 Mr. Kantilal Virchand Shah Mumbai, 400 001 Fax: (91-22) 2202-2853 Chairman and Managing Director India Email: [email protected] M/s. Gill & Co. Ltd. Tel. (91-22) 2204-1207 N.T.C. House Fax: (91-22) 2204-1368 Mr. Pradeep Kumar Sekhsaria 2nd Floor, N.M. Marg Email: [email protected] Director Ballard Estare M/s. Satyanarayan Sekhsaria & Co. Mumbai, 400 038 Mr Uday Shah 11A, Mittal Chambers India M/s. Bhaidas Cursondas & Co. Nariman Point Tel. (91-22) 2262-0598 16, Bombay Samachar Marg Mumbai, 400 021 Fax: (91-22) 2262-0598 Mumbai, 400 001 India Email: [email protected] India Tel. (91-22) 2202-2930 Tel. (91-22) 2204-1207 Fax: (91-22)-2202-2853 Mr. Mohit Dhirajlal Shah Fax: (91-22) 2204-1368 Email: [email protected] M/s. Gill & Co. Ltd. Email: [email protected] N.T.C. House, 2nd Floor Mr. K.G, Senthilkumar N.M. Marg Mr. Vijay Shah Executive Diretor Ballard Estate Propietor M/s. Centwin Textile Mills Pvt. Ltd. Mumbai, 400 038 M/s. Vijay Pratisthan SF No. 406, Karur Road India 103/104, Kalyan Apartments Vedasandur, Dindigul Dist Tel. (91-22) 2261-5001 First Floor,5, Kanchan Baug Main Road Tamilnadu, 624 710 Fax: (91-22) 2262-0598 South TEnglando Ganj India Email: [email protected] Indore, 452 001 Tel. (91-4551) 260-283 India Fax: (91-4551) 260-321 Mr. Rishabh Jayant Shah Tel. (91-731) 251-3610 Senior Executive Fax: (91-731) 251-3620 Mr S. Senthilnathan M/s. Gill & Co. Ltd. Email: [email protected] Managing Director N.T.C. House, 2nd Floor Rasi Seeds N.M. Marg Mr Ashutosh Sharma India Ballard Estate Joint Manager Director Mumbai, 400 038 M/S Rajasthan SPG and WVG MIills Ltd. Mr Devang Shah India Bhilwara Towers, A-12 Director Tel. (91-22) 2261-5001 Sector 1 Atmaram Maneklal Industries Ltd Fax: (91-22) 2262-0598 Noida, Uttar Pradesh 201301 822 Tulsiani Chambers Email: [email protected] India Nariam Point Tel. (91-120) 254-1810 Mumbai Mr Rohan Shah Fax: (91-120) 253-1745 India Administrative Manager Email: [email protected] M/s. Bhaidas Cursondas & Co. Mr. Deven Shah 16, Bombay Samachar Marg Mr Jamini Sharma M/s. Bhaidas Cursondas & Co. Mumbai, 400 001 Joint Secretary 16, Bombay Samachar Marg India Government of India Mumbai, 400 001 Tel. (91-22) 2204-1207 Ministry of Textile India Fax: (91-22) 2204-1368 Room No. 271, Udyog Bhavan Tel. (91-22) 2204-1207 Email: [email protected] New Delhi, 110011 Fax: (91-22) 2204-1368 India Email: [email protected] Mr. Samir Shah Tel. (91-11) 230-17626 M/s. Bhaidas Cursondas & Co. Fax: (91-11) 230-12646 Mr. Gautambhai Shah 16, Bombay Samachar Marg Email: [email protected] Director Mumbai, 400 001 Ahmedabad Cotton Merchants Association India Mr Mahavir Sharma 3rd Floor, Dahyabhai Chambers Tel. (91-22) 2204-1207 M/s Jhunjhunwala Co. Manek Chowk Fax: (91-22) 2204-1368 45, Maker Chambers III Ahmedabad, 380 001 Email: [email protected] 223, Nariam Point India Mumbai, 400 021 Tel. (91-79) 2664-0457 Mr. Satish Shah India Fax: (91-79) 2214-9907 Partner Tel. (91-22) 2283-0036 M/s. Bhaidas Cursondas & Co. Fax: (91-22) 2285-2783 Mr. Jayant Bhogilal Shah Sir Vithaldas Chambers Email: [email protected] Director 16, Bombay Samachar Marg M/s. Gill & Co. Ltd. Mumbai, 400 001 Mr Mahendra Kumar Sharma N.T.C. House, 2nd Floor India President Bajaj Steel Industries Ltd. 66 NOVEMBER-DECEMBER 2004

Imambada Road Fax: (91-22) 2204-8801 New Marine Lines Nagpur, 440018 Email: [email protected] Mumbai, 400020 India India Tel. (91-712) 2720-071 Mr. Manharlal M. Sheth Tel. (91-22) 2203-1508 Fax: (91-712) 2728-050 Vice Chairman Fax: (91-22) 2200-4693 Email: [email protected] M/s. Sri Asoka Textiles Ltd. Email: [email protected] Asoka Puram Mr N.M. Sharma Post Box No. 17 Dr. S. Sreenivasan Managing Director Aluva Director All India Co-operative Cotton Federation Ltd. Kerala, 683 101 Central Institute for Research on Cotton Tech. 408-E, Saka-I, OPP India Adenwala Road, Matunga Nehru Bridge Tel. (91-484) 283-8306 Mumbai, 400019 Ahmedabad, 380 009 Fax: (91-484) 283-7482 India India Tel. (91-22) 2414-6002 Tel. (91-79) 265-81730 Mr Manish Sheth Fax: (91-22) 2413-0835 Fax: (91-79) 265-82286 Director Email: [email protected] Email: [email protected] C.A. Galiakotwala & Co. Pvt. Ltd. 66, Maker Chambers III Mr MEnglandul Tayal Mr R. C. Sharma Nariman Point Director Senior PPS to Secretary Mumbai, 400 021 Tayalsons Ltd. Government of India India Kath Mandi Road Ministry of Textiles Tel. (91-22) 2284-3758 Hisar, Haryana 125001 Udyog Bhavan Fax: (91-22) 2204-8801 India New Delhi, 110011 Email: [email protected] Tel. (91-166) 223-1546 India Fax: (91-166) 223-0764 Tel. (91-11) 230-11769 Mr Sushant Sheth Email: [email protected] Fax: (91-11) 230-13681 Director C.A. Galiakotwala & Co. Pvt. Ltd. Mr Dirk Teichert Mr Vijay Kumar Sharma 66, Maker Chambers III Managing Director Resident Advisor Nariman Point CU Inspections India Pvt Ltd. Eurotex Industries & Exports Ltd. Mumbai, 400 021 402, Sagar Fortune, 184 Raheja Chambers, 12th Floor India Waterﬁ eld Road, Bandra (West) 213 Nariman Point Tel. (91-22) 2284-3758 Mumbai, 400050 Mumbai, 400 021 Fax: (91-22) 2204-8801 India India Email: [email protected] Tel. (91-22) 2640-0449 Tel. (91-22) 5630-1400 Fax: (91-22) 2641-3297 Fax: (91-22) 2204-4139 Mr Abhijeet N. Shinde Email: [email protected] Email: [email protected] Product Development Nat'l Commodity & Derivatives Exchange Ltd. Mr Chhida Sing Teotia Mr Bakulesh C. Sheth Exchange Plaza Chief General Manager Director Bandra -Kurla Complex The Cotton Corporation of India Ltd. C.A. Galiakotwala & Co. Pvt. Ltd. Mumbai Marketing Dept. 66, Maker Chambers III India Kapas Bhavan, Plot No. 3a Nariman Point Sector 10, CBD Belapur Mumbai, 400 021 Mr Avtar Singh Mumbai, 400614 India Deputy General Manager India Tel. (91-22) 2284-3758 The Cotton Corporation of India Ltd. Tel. (91-22) 275-76006 Fax: (91-22) 2204-8801 Shakambari Plaza Fax: (91-22) 2757-6030 Email: [email protected] Murtizapur Road Email: [email protected] National Highway NO. 6 Mr Dhiren Sheth Akola, 444001 Mr. Neerav Thaker Director India Executive C.A. Galiakotwala & Co. Pvt. Ltd. Tel. (91-724) 240-1185 M/s. Khimji Visram & Sons 66, Maker Chambers III Fax: (91-724) 240-1184 Commission Dept. Nariman Point Email: [email protected] 21 Mittal Chambers Mumbai, 400 021 228 Nariman Point India Mr Balbir Singh Mumbai, 400 021 Tel. (91-22) 2284-3758 Deputy General Manager India Fax: (91-22) 2204-8801 The Cotton Corporation of India Ltd. Tel. (91-22) 2202-1874 Email: [email protected] Gagnganagar Branch Fax: (91-22) 2204-1586 34, Main Sector, Shastri Nagar Email: [email protected] Mr Mahendra Sheth Bhilwara, Rajasthan 311001 Director India Mr Pravin Thaker C.A. Galiakotwala & Co. Pvt. Ltd. Email: [email protected] Partner 66, Maker Chambers III Khimji Visram & Sons Nariman Point Mrs Shashi Singh Commission Dept. Mumbai, 400 021 Director 21 Mittal Chambers India Ofﬁ ce of Textile Commissioner 228 Nariman Point Tel. (91-22) 2284-3758 48, New C.G.O. Building Mumbai, 400 021 India PROCEEDINGS OF THE 63RD PLENARY MEETING 67

Tel. (91-22) 2202-1874 Mr J. Thulasidharan 33A V. Thackersey Marg Fax: (91-22) 2204-1586 Managing Director New Marine Lines Email: [email protected] The Rajaratna Mills Ltd. Mumbai, 400 020 Race Course India Mr. Bhupendra Thakkar Coimbatore, Tamil Nadu 641018 Tel. (91-22) 2209-2139 Executive Cotton Trader India Fax: (91-22) 2209-2142 Kotak & Co Ltd. Tel. (91-422) 212-199 Email: [email protected] Navsari Building Fax: (91-422) 210-021 240 Dr. D.N. Road, Fort Email: [email protected] Mr Rajesh Ved Mumbai Propietor India Mr Rameshwar Lal Toshniwal Varun Agencies Tel. (91-22) 2207-3331 President Cotton Dept. Fax: (91-22) 2207-2267 Indian spinners Association G 70 C Block Shanti Shikhara A Aprt Email: [email protected] Elphinstone Building R.B Road Somajigda Veer Nariman Point Hyderabad, Andhra Pradesh 500082 Mr Chandulal Thakkar Mumbai, 400 001 India Director India Tel. (91-40) 558-24895 Prime Textiles Ltd. Tel. (91-22) 2204-0411 Fax: (91-40) 233-74895 604, Raheja Chambers, 6th ﬂ oor Fax: (91-22) 2283-2611 Email: [email protected] 213, Nariman Point Email: [email protected] Mumbai, Majarashtra 400021 Mr Vasant K. Vikamsey India Mr. Yogendra Nath Tripathi Director Tel. (91-22) 2288-1001 General Manager Orbit Tours & Trade Fair Pvt Ltd. Fax: (91-22) 2288-1002 Rana Polycot Ltd. 201/202, Navyug Industrial Estate Email: [email protected] Rwa Material T. J. Road, Opp Swan Mill SCO-49-50 Sector -C Sewree (West) Mr. Shantilal Thakkar Chandigarh, U.T 160014 Mumbai, Maharashtra 400012 Executive Cotton Trader India India Kotak & Co Ltd. Tel. (91-172) 5088-903 Tel. (91-22) 241-02801 Navsari Building Fax: (91-172) 2546-809 Fax: (91-22) 241-02805 240 Dr. D.N. Road, Fort Email: [email protected] Email: [email protected] Mumbai India Mr Harkishon Udani Mr Brijender Moham Vithal Tel. (91-22) 2207-3331 Chairman Project Co-ordinator Fax: (91-22) 2207-2267 Pranavaditya Spinning Mills Ltd. The Cotton Corporation of India Ltd. Email: [email protected] 92, Mittal Chambers Technology Mission on Cotton Nariman Point 12th Floor, Air India Building Mr Uday Thakkar Mumbai, 400 021 Nariman Point Managing Director India Mumbai, 400021 U.B. Cotton Pvt. Ltd. Tel. (91-22) 2283-7121 India Indian Globe Chambers, 7th Floor Fax: (91-22) 2284-2243 Tel. (91-22) 202-4363 142 W.H. Marg. Email: [email protected] Fax: (91-22) 220-25130 Mumbai, 400 001 Email: [email protected] India Mr Narottamdas Udeshi Tel. (91-22) 2261-1974 Consultant Mr. Chirag K. Vora Fax: (91-22) 2261-2967 C.A. Galiakotwala & Co. Pvt. Ltd. Executive Director Email: [email protected] 66, Maker Chambers III M/s. Chirag Textiles Pvt. Ltd. Nariman Point F/6, MIG Colony Mr. Mahesh C. Thakker Mumbai, 400 021 Periaswamy Road (West) Partner India RS Puram M/s. Perfect Cotton Co. Tel. (91-22) 2284-3758 Coimbatore, Tamil Nadu 641 002 62B. Mittal Court Fax: (91-22) 2204-8801 India Nariman Point Email: [email protected] Tel. (91-422) 536-8860 Mumbai, 400 021 Fax: (91-422) 255-0942 India Mr. Sanjay Udeshi Email: [email protected] Tel. (91-22) 2204-0395 Partner Fax: (91-22) 2284-4322 Shree Sanjay Trading Company Iran Email: [email protected] Cotton Trading B-93, Cotton Exchnage Bldg Dr. Asghar Heydari Mr. S. Thirupathi Cotton Green Coordinator of Nat'l Cotton IPM Project in Iran Vice President (Marketing) Mumbai, Maharashtra 400033 Plant Pests and Diseases Research Institute Premier Polytronics Pvt. Ltd. India Plant Disease Research Department 304, Trichi Road, Singanallur Tel. (91-22) 237-72896 P,O, Box 1454 Coimbatore, 641005 Fax: (91-22) 267-14024 Yaman Ave, Chamran Exp. Way India Email: [email protected] Tehran, 19395 Tel. (91-422) 551-1000 Iran Fax: (91-422) 551-1005 Mr. Jagdish Ved Tel. (98-21) 2406-793 Email: [email protected] M/s. Kotak Agencies Pvt. Ltd. Fax: (98-21) 240-3691 311, Lotus House Email: [email protected] 68 NOVEMBER-DECEMBER 2004

Israel Mr Akbar Ali Hashwani Mr. Daniel Ballestrin Chairman Vice-President Mr Joseph Dloomy Hashwani Group of Companies Paul Reinhart AG Green Space Ltd 102 Cotton Exchange Building Asia Trading Dept. Agri Business Development Karachi Technikumstrasse 82 7, Shilo Street Pakistan 8400 Winterthur Tel-Aviv, 64688 Switzerland Israel Mr Nadershaw D. Kabraji Tel. (41-52) 264-8215 Tel. (972-544) 320-947 Senior Partner Fax: (41-52) 2120-055 Fax: (972-3) 696-7564 Hakimuddin Hormusji & Sons Email: [email protected] Email: [email protected] Ameejee Valeejee Building Shahran E Liaquat Mr Damase Buchi Korea, Rep. of Karachi Deputy Managing Director Mr. Jun Cheol Jeong Pakistan Dunavant S.A. General Manager Tel. (92-21) 262-5156 10, route de l’aeroport Daewoo Int’l Corp Fax: (92-21) 262-7985 Geneva, 1215 Cotton Team Switzerland CPO Box 2810 Mr Mumtaz Muhammad Khan Tel. (41-22) 929-8100 Seoul Cotton Grower Fax: (41-22) 929-8150 Rep of Korea Tibba Sultan Pur Email: [email protected] Tel. (82-2) 759-2769 District Vehari Fax: (82-2) 759-3780 Pakistan Mr Pierre-Henri Deren Email: [email protected] Tel. (92-693) 692-000 Trader Fax: (92-693) 692-287 Dunavant S.A. Email: [email protected] 10, route de l’aeroport Pakistan Geneva, 1215 Mr Sohail Habib Ahmed Mr Syed Baqar Mahdi Switzerland Company Representative Chief Executive Tel. (41-22) 929-8100 M/S Sunrise Resources Limited MPL: Mahdi Pakistan (Pvt)Ltd. Fax: (41-22) 929-8150 Cotton Adminstration Email: [email protected] Suite 125 (1st Floor), Saima Trade Towers, B 256,Hotel Metropole,Club Road, Karachi Karachi Karachi, Sindh 021 Mr. Heinrich Eberli Pakistan Pakistan Head Marketing Spun Yarn Systems Tel. (92-21) 2217-461 Tel. (92-21) 521-5144 Rieter Machine Works Ltd. Fax: (92-21) 2217-461 Fax: (92-21) 565-2783 Klosterstrasse 20 Email: [email protected] Email: [email protected] Winterthur, Zurich 8406 Switzerland Mr Waqas Anwar Mr Maqbool Sadiq Tel. (41-52) 208-8627 Director Director Fax: (41-52) 208-8670 Amir Umar Industries Pvt Ltd Haji Khudabux Amir Umar (Pvt) Ltd Email: [email protected] G-31 & 32, The Cotton Exchange 3rd Floor Cotton Exchange Bldg, II Chundrigar Road I.I. Chudrighar Road Mr. Jose Antonio Gomis Karachi, 74000 Karachi, Sindh 74000 Director Pakistan Pakistan Cottip SA Tel. (92-21) 242-0382 Tel. (92-21) 241-3204 58,Chemin Frank-Thomas Fax: (92-21) 242-2493 Fax: (92-21) 241-6723 Cologny - Geneva, 1223 Email: [email protected] Email: [email protected] Switzerland Tel. (41-22) 787-0887 Mr Zahid Bashir Mr Iqbal Umer Fax: (41-22) 787-0886 Chief Executive Ofﬁ cer Director Email: [email protected] Bashir Ltd Haji Khudabux Amir Umar (Pvt) Ltd 3rd Floor, The Cotton Exchange 3rd Floor Cotton Exchange Bldg, Ms Clara Guasch I.I. Chundrigar Road I.I. Chudrighar Road Ikea Trading SA Karachi Karachi, Sindh 74000 Les Grandettes Pakistan Pakistan Allaman, CH-1165 Email: [email protected] Tel. (92-21) 2413-204 Switzerland Fax: (92-21) 2416-723 Tel. (41-21) 821-1172 Mr. Atif Dada Email: [email protected] Fax: (41-21) 821-1175 Director Dada Sons (Pvt) Ltd. Switzerland Mr Marino Hadzopoulos Marketing Dept. Trader 218/219, The Cotton Exchange Mr Curt Arbenz Jecot S.A. I. I. Chundrigar Road, PO Box 4580 Directeur Afrique 2, Rue Sigismond Thalberg Karachi, Sindh 74000 Reinhart Geneva, 1201 Pakistan Technikumstrasse 82 Switzerland Tel. (92-21) 2411-548 Winterthur, CH-8401 Tel. (41-22) 738-0644 Fax: (92-21) 2416-530 Switzerland Fax: (41-22) 741-0629 Email: [email protected] Email: [email protected] PROCEEDINGS OF THE 63RD PLENARY MEETING 69

Mrs Olessia Jemai 8th Floor, Martins Building Mr Nigel Scott General Manager 4 Water Street Global Head Commodities Jecot S.A. Liverpool, Merseyside L2 3SP Rabobank International 2, Rue Sigismond Thalberg England Thames Court Geneva, 1201 Tel. (44-151) 236-7888 London, EC4V 3RC Switzerland Fax: (44-151) 236-7999 England Tel. (41-22) 738-0644 Email: [email protected] Tel. (44-207) 664-9671 Fax: (41-22) 741-0629 Fax: (44-207) 809-3819 Email: [email protected] Mr Jean-Marc Derossis Email: [email protected] Plexus Cotton Limted Mr Richard Pollard Cotton Place Mr Jean-Louis Simons Trader 2, Ivy Street Cotton trader Ecom Agroindustrial Corp Ltd Birkenhead, Wirral CH41 5EF Ecom Agroindustrial Corp Ltd Ave Guillemin 16, England Pully Cotton trading dpt Pully, 1009 Tel. (44-151) 650-8888 Av Guillemin 16 Switerland Fax: (44-151) 650-8899 Pully, 1009 Tel. (55-11) 5508-8400 Email: [email protected] Switzerland Email: [email protected] Tel. (41-21) 721-7230 Mr Andrew Hursthouse Fax: (41-21) 711-1077 Mr Christophe Schneider Vice President Email: [email protected] Trader Cargill Cotton Dunavant S.A. 12 Princes Pritade Mr Shaun Stone 10, Rue de L’aeroport Liverpool, L3 IBG Plexus Cotton Limted Geneva, 1215 England Cotton Place Switzerland Email: [email protected] 2, Ivy Street Tel. (41-22) 929-8100 Birkenhead, Wirral CH41 5EF Fax: (41-22) 929-8150 Mr. Ian Magrane England Email: [email protected] Director Tel. (44-151) 650-8888 Weil Brothers & Stern Ltd. Fax: (44-151) 650-8899 Mr Bruno Widmer Trading Dept. Email: [email protected] Global Business Manager Fibers Cotton Wharf SGS Societe General de Surveillance S.A. 5 Abbots Quay Mr Peter Wakefi eld Place des Alpes 1 Monks Ferry Director Geneva, 1211 Birkenhead, Merseyside CH41 5LH Wakefi eld Inspection Services Ltd Switzerland England 6th Floor Cotton House Tel. (41-22) 739-9111 Tel. (44-151) 650-1000 Cotton Exchange Building Fax: (41-22) 739-9810 Fax: (44-151) 650-0655 Old Hall Street Email: [email protected] Email: [email protected] Liverpool, L3 9LQ England Mr Rolf Dieter Zeuner Mr John Pestell Tel. (44-151) 236-0752 Director Cotton Trader Fax: (44-151) 236-0144 Goenka-Impex, S.A. Ecom Agroindustrial Corp Ltd Email: peter@wakefi eldinspection.com 6, Rue de la Confederation Pully cotton trading dpt Geneva, CH-1204 Av Guillemin 16 Mr. Jamie Welsh Switzerland Pully, 1009 Director Tel. (41-22) 818-7240 Switzerland Weil Brothers & Stern Ltd. Fax: (41-22) 818-7249 Tel. (41-21) 721-7235 Trading Dept. Email: [email protected] Fax: (41-21) 711-1077 Cotton Wharf Email: [email protected] 5 Abbots Quay, Monks Ferry Uganda Birkenhead, Merseyside Ch41 5LH Mr Derek Russell England Mr Bruce Robertson Senior Cotton Scientist Tel. (44-151) 650-1000 Chairman Natural Resources Institute Fax: (44-151) 650-0655 North BEnglandediCotton Company Ltd Central Avenue Email: [email protected] P.O. Box 2496, Mbale, Uganda Chataham Maritime 59 Musgrave Road, Durban, South Africa Kent, ME4 4TB Mr Richard Weston Durban, 4001 England Managing Director South Africa Tel. (44-1634) 880-088 Evensis Ltd Tel. (27- 82) 377-4069 Email: [email protected] Columbus Quay Fax: (27-31) 303-5198 Riverside Drive Email: [email protected] Mr Peter Salcedo Liverpool, L3 4DB Plexus Cotton Limted England Cotton Place United Kingdom 2, Ivy Street Mr David Wookey Birkenhead, Wirral CH41 5EF Cotimetex SA Mr Robert Carter England England Managing Director Tel. (44-151) 650-8888 Central Cotton Co Ltd Fax: (44-151) 650-8899 Trading Dept. Email: [email protected] 70 NOVEMBER-DECEMBER 2004

United States Box 42132 Mr Fred G. Hardin Texas Tech University Mr Rex Beach Vice President Lubbock, TX 79424 Overseas Product & Marketing Specialist Globecot Inc USA John Deere Des Moines Works Marketing Dept Tel. (806) 742-2821 Des Moines Works 3322 West End Ave. # 550 Fax: (806) 742-1099 USA Nashville, TN 37203 Email: [email protected] Fax: (515) 289-3042 USA Email: [email protected] Tel. (615) 724-2225 Mr David Mrozinski Fax: (615) 279-5606 Vice President Mr. Brent Crossland Continental Eagle Corporation Marketing Manager Mr. Gagandeep Singh Kanwar International Sales Dept. Certifi ed Fibermax Cotton Asst Vice President 201 Gin Shop Hill Road 5108 91st Street Paul Reinhart Inc Prattville, AL 36067 Lubbock, TX 79423 Trading USA USA 2280 Cambell Creek Blvd, Suite 350 Tel. (334) 365-8811 Tel. (806) 470-3595 Richardson, TX 75082 Fax: (334) 361-7627 Fax: (806) 765-8876 USA Email: [email protected] Tel. (972) 301-3236 Mr David Pauli Fax: (972) 301-3284 Advertising Manager Dr. Dean Ethridge Email: [email protected] John Deere Managing Director 11145 Thompson Ave. Texas Tech University Mr. James Knowlton Lenexa, KS 66219 International Textile Center Branch Chief USA Box 45019 USDA, AMS Tel. (913) 310-8272 Lubbock, Texas 79409 Standardization & Engineering Branch Fax: (913) 310-8394 USA Cotton Program Email: [email protected] Tel. (806) 747-3790 3275 Appling Rd. Fax: (806) 747-3796 Memphis, TN 38133 Mr Nicoll G. Thomson Email: [email protected] USA Director International Sales Tel. (901) 384-3030 Lummus Corporation Mr Roger Fermon Fax: (901) 384-3032 P.O. BOX 4259 President Email: [email protected] Savannah, GA 31407-3030 Continental Eagle Corporation USA International Sales Dept. Mr Matthew Laughlin Tel. (912) 447-9000 201 Gin Shop Hill Road Marketing Manager Fax: (912) 447-9295 Prattville, AL 36067 J.G. Boswell Co. Email: [email protected] USA 101 W. Walnut St Tel. (334) 365-8811 Pasadena, CA 91103 Mr. Michael Varner Fax: (334) 361-7627 USA Cotton Industry Consultant Email: [email protected] Tel. (626) 583-3000 Varner Brothers Fax: (626) 583-3020 4745 poplar ave, #206 Mr James Flood Email: [email protected] Memphis, TN 38117 Product Marketing Manager USA John Deere Des Moines Works Mr. Marc Lewkowitz Tel. (901) 761-5691 USA Executive Vice President Fax: (901) 761-5697 Fax: (515) 289-3042 Supima Email: [email protected] 4141 E. Broadway Road Mr Hossein Ghorashi Phoenix, AZ 85040 Mr. Steve Williams CEO USA Chief Operating Offi cer USTER Technologies, Inc Tel. (602) 437-1364 Houchin Cotton Co., LLC 456 Troy Circle Fax: (602) 437-0143 4045 Stockdale Hwy Knoxville, TN 37919 Email: [email protected] Bakersfi eld, CA 93309 USA USA Tel. (865) 588-9716 Mrs Evelyne Minery Tel. (661) 396-0230 Fax: (865) 588-5894 Consultant for French and African Business Fax: (661) 396-0236 Email: [email protected] Continental Eagle Corporation Email: [email protected] International Sales Dept. Dr. Kater Hake 201 Gin Shop Hill Road Vice President Prattville, AL 36067 Delta & Pine Land Company USA Technology Development Tel. (334) 365-8811 100 North Main Fax: (334) 361-7627 Post Offi ce Box 157 Email: [email protected] Scott, Mississippi 38772 USA Dr. Samarendu Mohanty Tel. (662) 742-4732 Associate Professor Fax: (662) 742-4750 Texas Tech University Email: [email protected] Agricultural and Applied Economics PROCEEDINGS OF THE 63RD PLENARY MEETING 71

International Textile Manufacturers International Organizations Observers Non-member Federation (ITMF) Countries Mr Herwig M. Strolz Asian Development Bank (ADB) Director General Angola Mr Plamen Bozakov Postfach Water Resources Specialist Zurich, CH-8039 Mrs M. Fernanda do Amaral De Guerra Nsingui Agriculture, Environment & Natural Resources Switzerland Principal Adviser Div. Tel. (41-1) 283-6380 Ministry of Agriculture and Rural Development 6 ADB Ave. Mandaluyong City Fax: (41-1) 283-6389 Avda. Comandante Gika, no. 42 Manila, 0401 Email: [email protected] Luanda, 527 Philippines Angola Tel. (63-2) 632-6966 United Nations Conference on Trade and Tel. (244-2) 320-552 Fax: (244-2) 320-552 Fax: (63-2) 636-2444 Development (UNCTAD) Email: [email protected] Mr Mehmet Arda Mrs Paulina Lucia Essuvi Chief Head of Cabinet Comittee for International Cooperation Diversifi cation and Natural Resources Ministry of Agriculture and Rural Development between Cotton Associations (CICCA) Division on Int’l Trade in Goods and Serv. and Avda. Comandante Gika, no. 42 Mr Jerzy Kotwas Comm. Luanda, 527 President Palais des Nations Angola Committee for International Cooperations Geneva 10, CH-1221 Tel. (244-2) 320-552 Between Cotton Associations Switzerland Fax: (244-2) 320-552 c/o Gdynia Tel. (41-29) 628-6624 7, Derdowskiego St. Fax: (41-22) 917-0056 Mr Jose Carlos Fernandes Justino Gdynia Email: [email protected] Advisor Poland Ministry of Agriculture and Rural Development Mr. Lamon Rutten Avda. Comandante Gika, no. 42 Offi cer-in-charge, Finance, Risk Management Centre de Coopération Internationale Luanda, 527 and Information en Recherche Agronomique pour le Angola Commodities Branch Tel. (244-2) 320-552 Développement (CIRAD) Palais des Nations Fax: (244-2) 320-552 Dr Jean-Paul Gourlot Geneva, 1208 Technologist Switzerland Mr Abrahao P.S. Gourgel Cotton Technology Laboratory Tel. (41-2) 291-75770 Vice Ministry TA 70-16 Fax: (41-2) 291-70509 Ministry of Agriculture and Rural Development Montpellier, Cedex 5 34398 Email: [email protected] Institute of Agrarian Development France P.O. Box 6024 Tel. (33-46) 761-5875 World Bank (WB) Luanda, 527 Fax: (33-46) 761-5667 Angola Email: [email protected] Ms Julie Dana Tel. (244-2) 321-446 Technical Specialist Fax: (244-2) 324-902 Agriculture and Rural Development Common Fund for Commodities (CFC) 1818 H Street NW Mr Dario Daniel Katata Mr Sietse Van der Werff Washington, DC 20433 Deputy Minister Senior Project Manager USA Ministry of Agriculture and Rural Development Stadhouderskade 55 Tel. (202) 458-4988 Avda. Comandante Gika, no. 42 Amsterdam, 1072 AB Fax: (202) 522-5708 Luanda, 527 The Netherlands Email: [email protected] Angola Tel. (31-20) 575-4953 Tel. (244-2) 320-552 Fax: (31-20) 676-0231 World Trade Organization (WTO) Fax: (244-2) 320-552 Email: [email protected] Mr Jean-Pierre Lapalme Counselor Bangladesh European Commission (EC) Textile Division Dr. Quamrul Ahsan Mr Henny Gerner Rue de Lausanne 154 Editor in Chief Policy Advisor Centre William Cotton Bangladesh DG Development / B4 Geneva, CH-1211 11, Cedar Drive, Tuxedo Park Rue de Genève 12, Offi ce 05/09 Switzerland NY, NY10987 Brussels, B-1049 Tel. (41-22) 739-5223 USA Belgium Fax: (41-22) 739-5780 Tel. (845) 753-6844 Tel. (32-229) 86-618 Email: [email protected] Fax: (845) 753-6841 Fax: (32-229) 92-908 Email: [email protected] Email: [email protected] Mr Syed Javed Ahsan Director Arenco Ltd. 03-07 Priyo Prangan Towe 19 Kemal Ataturk Avenue Dhaka, 1213 72 NOVEMBER-DECEMBER 2004

Bangladesh Burundi China (Mainland) Tel. (880-2) 885-2382 Mr Gerard Ruzagiriza Ms Guo Rongmin Fax: (880-2) 988-5866 General Director Manager Email: [email protected] Compagnie de Gerance du Coton Beijing Cotton Outlook Consulting Ltd P.O. Box 2571 International Department Mr Deepok Kumar Baral Bujumbura B-12th Floor, Tongtai Building CEO Burundi No. 33 Finance Street DSM Commodities Tel. (257) 22-4370 Beijing, 100032 Cotton Marketing Dept. Fax: (257) 22-2025 P.R. China 53, Purana Paltan Email: [email protected] Tel. (86-10) 8808-7065 Room No.401, Floor no. 04 Fax: (86-10) 8808-7285 Dhaka, 1000 Email: [email protected] Bangladesh China (Hong Kong) Tel. (880-2) 956-5692 Mr Cheuk Wai Lau Mr Zhongxing Wang Fax: (880-2) 955-7526 Assistant Manager Manager of Foreign Trade Company Email: [email protected] Central Textiles (H. K.) Ltd Shandong Swan Cotton Industrial Machinery Quality Department Stock Co Ltd Mr Mahamud Hossain 8-14 Sha Tsui Road, Tsuen Wan No. 400, Tenth Area Executive Director Hong Kong East Village of Luokou Aegis Textile Mills Ltd. China Jinan City, 250032 Textile Industries Tel. (852) 26115062 P.R. China 9/A, Motijheel Commercial Area, 1st Floor Fax: (852) 24999733 Tel. (86-531) 5700-969 Dhaka, 1000 Email: [email protected] Fax: (86-531) 570-4882 Bangladesh Email: [email protected] Tel. (880-2) 9565-269 Mr Mei Yin Vivienne Lee Fax: (880-2) 9564-661 Managing Director Mr Wang Xizhong Wallon Cotton Ltd. Vice General Manager Mr Hissam Khandker Room 405, Eastern Commercial Ctr Shandong Swan Cotton Industrial Machinery Director 393-407 Hennessy Road Stock Co., Ltd Delcot Enterprises Ltd Wanchai No. 400 Tenth Area, East Village of Luokou Sales Dept. Hong Kong JInan City, 250032 28, Dilkusha C/A, Suite 303 China P.R.China Dhaka, 1000 Tel. (852) 2891-1165 Tel. (86-531) 570-0969 Bangladesh Fax: (852) 2834-5029 Fax: (86-531) 570-4882 Tel. (880-2) 986-1514 Email: [email protected] Email: [email protected] Fax: (880-2) 986-1455 Email: [email protected] Mr Urs Riederer President Japan Mr Sagar Lohani Sunrise Resource Limited Mr Yasushi Watanabe Editor Suite B 22/F. Manager Cotton Bangladesh Wing Hang Insurance Building Nissinbo Industries, Inc. 416, Road 30, New DOHS 11 Wing Kut Street Raw Cotton Committee Dhaka, 1206 Hong Kong No 2-4-2 Kitakyuhoji-Machi Bangladesh China Chuo-Ku Tel. (880-2) 885-0927 Tel. (852) 2815-8781 Osaka, 541-0057 Fax: (880-2) 989-1527 Fax: (852) 2544-0480 Japan Email: [email protected] Email: [email protected] Tel. (81-6) 6267-5550 Fax: (81-6) 6267-5689 Mr Abu Nasr Mainuddin Mr L. P. Theng Email: [email protected] Managing Director Area Manager Acala Limited John Deere Asia Ltd. Mr Yuji Watanabe 41, Dilkusha C/A Unit 707-8, 7/ F, Lippo Sun Plaza Manager Dhaka, 1000 28 Canton Road, Tsim Sha Tshui Toyoshima & Company Ltd. Bangladesh Hong Kong, 12-47 Nishiki, 2-Chome Tel. (88-02) 9554124 China Nakaku Fax: (88-02) 956-1818 Nagoya, 460-8671 Email: [email protected] Mr Wai on Gilbert Wong Japan Deputy General Manager Tel. (81-52) 204-7502 Ms Christina Rozario Wallon Cotton Ltd. Fax: (81-52) 204-7423 Advisor Room 405, Eastern Commercial Ctr Email: [email protected] Cotton Bangladesh 393-407 Hennessy Road 416, Road 30, New DOHS Wanchai Kazakhstan, Rep. of Dhaka, 1206 Hong Kong Bangladesh China Mr Berik Abdushev Tel. (880-2) 885-0927 Tel. (852) 2891-1165 First Secretary Fax: (880-2) 989-1527 Fax: (852) 2834-5029 Embassy of Kazakhstan Email: [email protected] Email: [email protected] New Delhi India PROCEEDINGS OF THE 63RD PLENARY MEETING 73

Mr. Islam Abishev ICAC Secretariat Mr. Vladimir Goldgor First Deputy Russian Interpreter Mr Federico Arriola South-Kazakhastan Oblast 5500 Friendship Blvd. Administrative Offi cer Tauke Khan Avenue 6 Suite 923N Shymkent City, Chevy Chase, MD 20815, USA Dr M. Rafi q Chaudhry Rep of Kazakhastan Tel. (301)718-1734 Head, Technical Information Section (TIS) Tel. (3252) 549-292 Fax (301)718-0114 Email: [email protected] Email: [email protected] Mr Gérald Estur Statistician Mr Kairat Umarov Mr. Michael Gordon Ambassador Mr Andrei Guitchounts French Interpreter Embassy of Kazakhstan Economist 3308 Rowland Pl. New Delhi, Washington DC 20008, USA India Ms Carmen S. León Tel. (202)363-9290 Bilingual Assistant Email: [email protected] Kenya Mr Eugene Ostrovsky Mr S. Barry Fisher Mr John Mulligan Russian Interpreter Cotton/Textile Specialist Director, Information Technology VA (USA) Chemonics International P.O. Box 1555-00606 Ms Caroline Taco Nairobi Bilingual Assistant Ms María Cristina Quesada Kenya Spanish Interpreter Tel. (254-20) 421-2000 Dr Terry Townsend Calle Tequeteque Fax: (254-20) 421-2271 Executive Director Res. Monterrey, Apt. 19A Email: bfi [email protected] Colinas de la California Mr Carlos Valderrama Caracas, Venezuela Head Economist Mexico Tel. (58 2)256-3776 Email: [email protected] Dr. José Martínez-Carrillo Entomology Researcher Interpreters Ms Esther Tato-López INIFAP Mr. Fayed Ateya Spanish Interpreter Entomology Arabic Interpreter 6521 River Tweed Lane Norman E. Borlaug Km. 12 9496 Harrowhill Lane Alexandria, VA 22312, USA Talamante 280 Oriente Burke, VA 22015-1539, USA Tel. (703) 916-0664 Ciudad Obregon, Sonora85160 Email: [email protected] Mexico Ms. Nina Behrens Tel. (52-644) 414-5700 Arabic Interpreter Fax: (52-644) 130-930 42881 Sanhurst Ct. Email: [email protected] Ashburn, VA 20148, USA Tel. (571) 333-7558 Email: [email protected] Singapore Mr Sandeep Hota Ms. Michele De Gravwe Senior Trader French Interpreter Olam International Ltd 5410 Connecticut Ave. NW # 606 Cotton Division Washington DC 20015, USA 9 Temasek Boulevard Tel. (202) 686-0467 #11-02, Suntec Tower Two Email: [email protected] Singapore, 038989 Tel. (65) 633-94100 Fax: (65) 633-99755 Email: [email protected]

Mr Jagdish Parihar Managing Director Olam International Ltd Cotton Division 9 Temasek Boulevard #11-02, Suntec Tower Two Singapore, 038989 Tel. (65) 633-94100 Fax: (65) 633-99755 Email: [email protected]

***** 74 NOVEMBER-DECEMBER 2004 PROCEEDINGS OF THE 63RD PLENARY MEETING 75 76 NOVEMBER-DECEMBER 2004 PROCEEDINGS OF THE 63RD PLENARY MEETING 77 78 NOVEMBER-DECEMBER 2004 PROCEEDINGS OF THE 63RD PLENARY MEETING 79 80 NOVEMBER-DECEMBER 2004