Director General's Consultative Framework Mechanism on Cotton - Communication from the Republic of the Sudan - Revision

DIRECTORGENERAL'S CONSULTATIVE FRAMEWORK
MECHANISM ON COTTON

COMMUNICATION FROM THE REPUBLIC OF THE SUDAN

Revision

 

        The following communication, dated 26 June 2015, is being circulated at the request of the delegation of the Republic of the Sudan.

 

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1  Cotton in The Sudan

1.1.  The agricultural sector, historically, generated the bulk of Sudan's foreign exchange earnings through a diversified basket of exports that includes cotton, gum arabic, livestock, sesame, and a number of smaller commodities.

1.2.  The sector provides employment for about 70% of the country's population, generates around one-third of the total GDP, and provides inputs to many major manufacturing industries (e.g., edible oils, leather, and sugar). Several of the major exports (e.g., sheep and gum arabic) are produced in traditional rain-fed areas and provide critical sources of income for the rural poor (DTIS 2008).

1.3.  Cotton is a strategic crop for the Sudanese population. It is a source of employment which generates income that satisfies families' needs and services, stimulating the stability, development and security of the population. Cotton is a source of foreign currency earnings, in addition to its by-products used as fodder for livestock and as fuel for transportation and other services' sectors.

2  Cotton Production

2.1  History

2.1.  Knowledge of cotton planting in Sudan goes back to the XIX century when it was grown for the first time in Eastern Sudan (Tokar area). Commercial growing started in 1905 at Zeidab Pilot Scheme in Northern Sudan. The year 1925 was a landmark in irrigated agricultural production in Sudan, following the establishment of the Sennar dam. Since then, cotton assumes a leading role as a cash crop.

2.2  Organization

2.2.  The organization of cotton production in Sudan started through the establishment of a large governmental administration with the participation of farmers. After the enforcement of the Gezira Scheme Act for the year 2005, this relationship started to change and the major feature of this change was the relaxation of the Government's strong grip on the sector. The stage is now set for different options targeting a smart participation between the Government, farmers and the private sector.

2.3  Major Varieties

a.      Barakat (90). The major extra-long staple (ELS) variety (33-36 mm), early maturing and high–yielding, The variety is comparable to traditional  Barakat in fibre characteristics , superior in both fineness and strength (34-41 HVI). The bulk is grown in Gezira (irrigated, hand-picked and roller-ginned).

b.     Barac (67) Acala. It is a Medium Staple Cotton, both roller and saw-ginned, the variety is known for its good micronaire value (3.8 - 4.2) and bright colour.

c.      Albar (57) 12 and Acrain. The coarse count cottons Albar (57) 12 Known as (Nuba ) and (Acrain) are short staple rain–grown cottons.

d.     Abdin. It is a fine – count cotton variety, early maturing with the following characteristics:          

i.        Highly resistant to both bacterial blight races in Sudan (32.0 mm) (33 - 37g/tex).

ii.       Higher degree of tolerance to jassid.

iii.     60% increase in yield over Shambat – B.

iv.     Staple length  32- 31.

v.      Micronaire 4.2 - 4.4.

vi.     Strength 33-37 (HVI).

e.     Hamid (BB – 82). It is a medium-count, high-yielding, early-maturing and open canopy. Hamid can be recommended for integrated Crop Management (28.0 mm).

2.4  Newly Released Varieties 

2.3.  Sudan has recently released nine varieties, two of which commenced commercial production (Abdin & Hamid). The other seven are:

a.      Siddig (Sudan Pima). It is a selection from a cross between Barakat – 90 and Pima. It is a Fusarium Wilt-resistant variety (33 mm).

b.     Hadi (Okra–leaf Barakat). It is a selection from a cross between Barakat - 90 and Pima Okra, early-maturing and high-yielding (33 mm).

c.      Kheiralla. It is a high-count Acala (HCA) jassid-resistant, excelling Nour in yield and fineness (29 - 31 mm).

d.     Knight (BB - 90). A medium-count cultivar resistant to bacterial blight (29 - 30 mm).

e.     Wager. It is a high-yielding variety, adaptable over a wide range of environments. Wager has longer fibre length, and better micronaire value than Hamid.

f.       Burhan. Suited for rain–fed areas, more prone to late-drought problems.  Burhan gave average lint yield advantage over Albar (57) 12, Almac (80) 15 and Acrain .

g.     Khalifa. It is suitable cultivar for commercial production in rain-fed areas of Southern kordofan and Blue Nile regions of the Sudan. Khalifa excelled Albar (57) 12, Almac (80) 15 and Acrain for yield.

 

 

Table 1 Cotton production during 2001-2013 seasons

 

IN TONNES

Season

E.L.S.

M.S.

 

S.S. + Others

Total

Barakat

Acala

Nour

Nuba + Acrain

2001

17,689

53,945

0

297

71,931

2002

25,315

43,358

0

69

68,742

2003

45,497

34,163

0

1,880

81,540

2004

40,290

25,124

0

142

65,556

2005

42,273

23,063

16,305

0

81,641

2006

36,038

3,002

32,567

0

71,607

2007

29,683

28,723

0

0

58,406

2008

14,228

8,523

0

0

22,751

2009

8,593

20,903

0

0

29,496

2010

4,727

9,993

0

0

14,670

2011

0

1,751

0

14,249

16,000

2012

0

50,000

0

47,920

97,920

2013

0

1,430

0

15,570

17,000

 

Table 2 Sudan cotton exports by variety (2001-2014)

 

IN BALES OF 420 LBS

Year

Barakat

Shambat

Acala

Nour

Others

Total

2001

54,241

100

163,777

0

0

218,118

2002

76,517

0

312,900

0

0

389,417

2003

269,037

2,000

209,400

0

1899

482,336

2004

218,264

0

118,184

0

7875

344,323

2005

284,957

0

147,328

34,675

0

466,960

2006

154,762

0

125,850

74,030

0

354,642

2007

160,085

0

129,518

4,404

0

294,007

2008

103,793

0

77,951

0

0

181,744

2009

57,994

0

74,369

0

0

132,363

2010

97,126

0

55,296

0

0

152,422

2011

11,041

0

26,599

0

0

37,640

2012

13,383

0

0

0

0

13,383

2013

63,931

0

104,763

0

0

168,694

2014

13,140

0

13,567

0

0

26,707

 


Table 3 Sudan cotton exports by variety and destination (from 1 January to 31 December 2014)

 

IN TONNES

Country

Total

Arabic Country

 

Egypt

8,294

Total

8,294

Asian Country

 

China

17,293

India

3,754

Indonesia

105

Sri Lanka

332

Total

21,484

European Country

 

Belarus

56

Czech Republic

79

Germany

1,836

Portugal

108

Turkey

92

Total

2,171

GRAND TOTAL

31,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 4 Domestic production, consumption and trade in cotton (average 2000-2004)

 

Crop/

Product

Production

(M.T.)

Domestic Consumption

Exports/Imports

Quantity

(M.T.)

Production

(%)

Quantity

(M.T.)

Production

(%)

Cotton (long staple)

37,672

2,260

6.0

35,412

94

Cotton (medium staple)

41,576

2,495

2.4

39,082

94

 

Source: Annual Reports of the Central Bank of Sudan (DTIS2008).

 

2.4.  The sector is linked to the poverty-reduction efforts, particularly through the income of farmers, and a number of families depend on it as the main source of income for them to have access to food, education and health. In addition to that, cotton production has helped improve cereal production, hence contributing to food security. 

2.5.  The Sudanese cotton is of very high quality and has a comparative advantage. At the same time, the facts have made evident that the global cotton market is characterized by slow demand; rapid productivity growth; new entrants into the market; downward price trends, and price volatility. Sudan's cotton exports are undermined by industrial country subsidies, which depress world prices for cotton.

2.6.  The production and export of cotton have declined sharply over the past decade due to poor margins. Factors contributing to the low profitability and productivity include: high cost of production and low international prices that affect cultivated areas and productivity leading to the deterioration of the irrigation infrastructure in the Irrigated Schemes, poor management of water distribution and maintenance, and prevent the adoption of new technologies.

2.5  Factors Encouraging Cotton Production

a.      The availability of water resources: rain, rivers and surface water.

b.      Diversified farming systems.

c.      Vast land with diverse soil.

d.     Accumulated experiences.

e.     Ginneries and textile factories in addition to oil mills.

2.5.1  Production Farming Systems

2.7.  Sudan is one of the largest countries with appropriate climatic conditions and good infrastructure eligible for the cultivation of cotton which is produced in the following sectors:

2.5.1.1  The Irrigated Sector

2.8.  Currently 99% of the total area of cotton in the irrigated sector involves the following areas: Gezera, Halfa, Suki. Blue Nile projects, White Nile projects, Alzaidab and Aliab.

2.5.1.2  The Rain-fed Sector

2.9.  It involves the following areas: Gedarif, Sennar, Blue Nile, North Kordofan, South Kordofan, South Darfur, North Darfur and West Darfur.

2.5.1.3  Flooding–Irrigated Sector

2.10.  It involves the following areas: Delta Tokar; Gash Delta and Khor Abu habil. The diversification of these cultivation systems provide a good environment for the sustainability of production, but the majority of cotton is grown in the Gezira Scheme New halfa, Alrahad, Asuki corporations.

2.6  Cotton Exports

2.11.  In the early 90's cotton was the most important agricultural export for Sudan accounting for 35% to 45% of the value of exports in 1990/91, but the share declined to around 20% in the middle of the decade, and from 2000 to 2005 it averaged only 15% (see Tables 1, 2 and 3).

2.12.   The importance of cotton production, consumption and trade for Sudan is very high in light of the sector's significant share in GDP, as a share of total merchandise and agriculture exports.  Many households are dependent on the cotton sector and there is an urgent need to respond, in an integrated manner, to the challenges faced by Sudan in this sector.

2.7  Cotton Sector Reforms

2.13.  To continue with its cotton sector reforms, Sudan is in highly need of financial and technical assistance in the following areas:

·        Strengthening cotton production methods; increasing yield with new cotton varieties.

·        Improving the domestic competition in production, distribution, buying and selling; legislative framework for investors, in order to achieve increased market efficiency.

·        Infrastructure improvement.

·        Commodity price-risk management strategies through the use of market-based instruments.

·        Support for quality control and standards in cotton production.

·        Enhancement and support for cotton sector support services and product sector strategy development.

·        Export promotion and market access support services.

·        Support for diversification and downstream value-added production in textiles and apparel.

·        Support for producers' organizations.

·        Involvement in the on-going Regional Cotton Technology Programmes; Regional Research Programmes; and, Regional Capacity Building Programmes (to be implemented by regional bodies within the framework of NEPAD).

·        Support for the rehabilitation of textile and clothing mills. 

 

Graphic 1 Cotton's contribution in the total agricultural exports, 1990-2013 (million US$)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Graphic 2 Area (Ha) and production of cotton lint (MT), 1961-2013

 

 

 

 


Graphic 3 Production and exports of cotton lint (MT), 1961-2013

 

 

 

 

 


Table 5 Domestic cotton sector reforms for enhanced development assistance

 

Measure

Description

Implementation status/period

Focal point

Reform priorities

Introduction of individual accounts

Encouragement of farmers to be self-dependent

1981/1982

Ministry of Agriculture, Sudan

Maximize farmers' returns. Increase agricultural exports. Enhance socio-economic development

Gezira rehabilitation project

Rehabilitation of the scheme infrastructure (e.g. agriculture machinery, GL railways, irrigation network, storage capacity and ginneries)

1981/1992

IDA

Adequacy and timeliness of agricultural inputs. Abundance of irrigation water. High ginning capacity and transportation. Proper land preparation

New Halfa rehabilitation project

Rehabilitation of the scheme infrastructure (e.g. agriculture machinery, irrigation network, storage capacity and ginneries)

1986/1987

Ministry of Agriculture, Sudan

Adequacy and timeliness of agriculture operations. Proper land preparation. Abundance of irrigation water. High ginning capacity and transportation

Adoption of liberalization policy

Change from government fiancé to private fiancé through banks consortium

1992

Council of Ministers, Sudan

Reallocation of resources. Encouragement of investment in the agriculture sector. Self-dependency

Adoption of liberalization policy

Cabinet decree for the abolishment of stabilization funds for agricultural exports – National equalization fund

1993/1994

Ministry of Finance and Ministry of Agriculture, Sudan

Improve market environment. Self-dependency

New Halfa scheme rehabilitation project

Eradication of Moskeet tree from irrigation canals and irrigated areas. Rehabilitation of irrigation canals

2004

Ministry of Finance and Ministry of Agriculture, Sudan

Increase irrigation efficiency. Increase cultivated area and farmers' incomes

Enactment of the Gezira Scheme 2005 Act

Realize farmers' free crop choice according to market signals (both local and international). Privatization of inputs supply and services. Liquidation of cost centres (e.g. ginneries, ag. engineering, GLR deps and other services. Restructuring of the scheme management

2005

Council of Ministers, Sudan. The National Council and the Presidency of the Republic of the Sudan

Reallocation of resources. Encouragement of investment in the agricultural sector. Self-dependency. Farmers' participation in field management through water users' associations. Maximize farmers' returns. Better resource utilization. Enhance development and welfare of local communities. Food Security

Agriculture Revival Programme

Transform and modernize agriculture utilizing advanced technology, responsive to market signals

2006

Council of Ministries, Sudan

Poverty-reduction, economic growth, foreign exchange earnings and sustainable management of natural resources

Finance through the Sudan Cotton Company (farmers' institution)

Production and marketing of cotton crop

2010/2013

Sudan Cotton Company - Khartoum, Sudan

Encourage cotton production. Encourage research to introduce new high-yielding varieties (in quantity and quality). Buy seed cotton at farm gate. Transfer of ginning responsibility and marketing to the company (lint and seed). Avail inputs for other crops grown by cotton farmers against cotton proceeds. Replace old ginneries by high capacity ones

Introduction of Bt (genetically modified) cotton

Improve cotton productivity. Reduce production costs

2012/2014

Ministry of Agriculture, Sudan

Maximize farmers' income. Increase cotton cultivated area. Reduce agrochemical inputs. Preservation of the environment

 

 

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