SUDAN. COUNTRY STATEMENT TO THE 74 th PLENARY MEETING OF THE ICAC

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1 SUDAN COUNTRY STATEMENT TO THE 74 th PLENARY MEETING OF THE ICAC Mumbai, India December 6 to 11, 2015 THE SUDAN COTTON COMPANY PLANNING AND RESEARCH DEPARTMENT November, 2015

2 SUDAN COUNTRY STATEMENT TO THE 74 th PLENARY MEETING OF THE ICAC Mumbai, India December 6 to 11, 2015

3 1. Foreword For the last 10 years cotton area, productivity and production varied greatly. The smallest area (41.2 thousand ha) was harvested though the largest area (309 thousand ha) was harvested Productivity ranged between 450 to 550 kg lint/ha during using traditional varieties. The productivity increased to kg lint/ha with the advent of GE cotton GE cotton area season was more than 95% from the total cotton production area in Sudan. The present cotton production situation in the Sudan has to be recovered; in the sense that production area, productivity and production should be increased and fiber quality range must be widened for better competiveness in the world market. Recently two GE Indian hybrids have been released for commercial production in Sudan. These two hybrids would certainly contribute positively in recovery of the cotton industry in Sudan. They are highly resistant to bollworm, tolerant to Jassid, high yielders with good fiber quality at the top of the medium staple cotton category. Moreover, the Sudan is playing a significant role in maintaining the traditional varieties and putting more money to fiancé farmers to grow the extra-fine cotton (Barakat), the long staple cotton (Abdin) and the medium staple cotton variety (Hamid). The revival of the present cotton production situation in the Sudan has been highlighted and highly considered in the five-year program. The five-year economic reform program put more emphasis on cotton production improvement. The program comes in the wake of the three-year program period , that aimed to fill the gap of oil production share, which declined in the year 2011 and its negative effects on the economy and bridging the gaps of internal and external resources and the control of inflation to restore stability and achieving positive growth rates. 2. The agricultural sector The aim of the program is to increase productivity and production of the agricultural crops and animals. This will bridge the gap in trade balance (exports and import substitution) and a substantial increase in aggregate supply of goods for the purpose of stabilizing prices to ease the burden of living and to improve the level of real income of citizens. The program is estimated to increase the value of agricultural production (plant and animal) of nearly 26 billion dollars in 2015 to about 54 billion dollars in 2019, with an annual growth rate of 6.8%.

4 3. Cotton within the program The program is expected to raise cotton production from 500 thousand tons in 2015 to 882 thousand tons by the end of 2019 program and maintain productivity in the range within 1000 kg lint/ha. Policies associated with Cotton in the five-year economic reform program a. Reduce production costs and increase production in the existing agricultural schemes b. implementing the outputs of development strategy and develop the traditional rain sector c. Adoption of appropriate technology packages for production including plant density, fertilizer, land preparation, improved seeds and the use of modern technology such as laser leveling d. linking agricultural production and export e. upgrading of the agricultural technologies f. adopting agricultural insurance against natural hazards and funds g. promotion of cotton farming to increase self-sufficiency and increase export by providing promotional prices for Cotton producers h. encouraging smart partnerships with domestic and foreign private sector in agricultural sector in the areas of production and marketing and export i. increase cotton production through: i. mapping of cotton varieties to balance supply and demand of different quality types for domestic and export needs ii. encourage rain-fed cotton production for its lower cost of production and high quality iii. support for agricultural research to develop varieties with high yield and better qualities suitable for domestic consumption and export iv. promote scientific research in genetic engineering to develop bollworm resistance in long staple varieties for export v. Relate price and quality and encouraging producers by announcement of prices early in each season vi. Adoption of modern agricultural technologies with proper agricultural financing and the establishment of a fund to focus prices.

5 vii. production expansion of transgenic cotton farming viii. Utilization of agricultural mechanization in planting and harvesting. 4. Production in 2015/2016 Cotton Area in 2015/2016 decreased to 50 thousand hectares compared with 89.1 thousand hectares in 2014/2015. Projection Area in 2016/2017 is about 100 thousand hectares. To some extend the (EPAR) created a beneficial atmosphere for mobilizing the whole community and encouraging its participation in the agricultural activities, noting that the program gives a greater support to the private sector capabilities by empowering it to play a greater role in the implementation of the program. Last year and with the aim of Utilizing resources earnestly, the private sector was given this room to play a significant role in agricultural production in the country. Private sector Companies were strongly encouraged to invest in cotton production. Led by the Sudan Cotton Company Limited, the private sector companies took the responsibility of financing and managing directly cotton production operations. The Sudan Cotton Company Limited kept its pledge to the farmers and did not increase the revenue from its investment on cotton. Other companies like the Arab authority for investment and agricultural development, A Brazilian Company and some individual farmers have financed and managed cotton production in different areas in Sudan.

6 5. Outlook for 2016/2017 crop The adopted agricultural policies: The agricultural policies adopted for 2016/2017 season:- Major landmarks:- a. Investment area: Categorization of export oriented agricultural investments as strategic schemes should enjoy all the benefits contained in the national investment act. This means that all cotton investment initiatives will draw from the investment act concessions b. Modernization of agricultural systems through raising the efficiency and optimization of irrigation water together with perfection of other production practices. c. Completion and adoption of agricultural institutional reform:- The Gezira act for 2005 has been revised The amended act has restored the normal status of the cotton crop in the agricultural rotation in the Gezira scheme. d. Marketing policies The general principle is to give agricultural products, which have export oriented potentials, priorities in obtaining finance and other facilities which enhance their competitive advantages. The aim is to help in restoring the lost traditional markets for these products; the package for pushing these exports contains measures like tax exemption for all export oriented agricultural products. The exemptions include taxes and charges on imports and on finished products along all value chains. 6. Cotton Production finance The 2015/2016 crop is financed by some local banks, farmers with financial competence and private companies working in the field of cotton. The planted irrigated area, which is estimated as hectares, shows a noticeable decrease season 2015/2016 compared to hectares season 2014/2015. The fluctuation in area and output in the recent years could be partially due to the negative impacts of the Gezira Act Exports: Exports in 2014 witnessed a sharp decline to 4.7 thousand tons compared with 31.8 thousand tons exported in the year As for the year 2015

7 up to October about two thousand tons have been exported. Details of exports by variety during the last five years are shown in table (3). 7. Local mills consumption: Local mills consumption increased in year 2015 to 9.4 thousand tons (Up to Oct.) compared to 7.7 thousand tons in Marketing policy: a- The main features of Sudan Cotton Marketing Policy remained intact for the last 19 years. These include the following: - Ø Adoption of tender system as the main method of sale is being the most flexible and fair system. Ø Full restriction of all forms of preferential treatment or any other transaction that may affect the principle of equal treatment and fair competitiveness Ø Efficiently and timely executed contracts to satisfy buyers b. Direct deal with quantity discount to those who buy more than bales or above. c. Private agreements for new market.

8 8- Cotton Research Program Wad Medani, Sudan General Cotton Research Objectives: Development of varieties fitting to different climatic zones, having different balances of fiber characteristics, getting by textile and spinning progress. To develop crop production practices to maximize yield from improved genotypes including management of a biotic stresses To develop effective and economic plant protection measures for the management of biotic stresses Upgrading of productivity through multidisciplinary technical approach package adoption fitting into ICM strategy. Multi-disciplinary research The release of Bt cotton varieties has provided a concrete platform for a multidisciplinary research. Integrated management of cotton requires implementation of the agricultural packages timely integrated with other elements of production inputs, financing and agricultural policies. As each component has a positive impact on yield depending on the existence or absence of other elements. Thus, the integrated management of inputs and agricultural operations represents the only mechanism for sustainable cotton farming. The main goal of integrated management is to maintain plant health through coordinated tactics in crop production and protection system. More emphases have been given to extra-fine cotton research in the sense that this type of cotton is of immense importance in the marketing policy of Sudan. Lately, New Extra-fine cotton lines have been developed with intermediate reaction to bacterial blight disease. The advantage seed cotton yield of the lines over Barakat 90 was in the range of 4-28 per cent. They had longer, stronger and finer fibers compared to Barakat-90. The lines were earlier cropping and gave per cent of their yield in the first pick compared to 43.5 for Barakat-90. Hence these lines signify improvement in seed cotton yield, fiber quality, earliness of maturity and reaction to bacterial blight in Sudan extra-fine cotton. In addition to the commercial Chinese Bt cotton variety, one more Chinese (China2) variety and two Indian hybrids were released for commercial production. The two Indian hybrids are characterized by good fiber quality that meant to improve Sudan cotton marketability. Research is being conducted to optimize the Bt cotton varieties needs; irrigation water, fertilizers and other protection measures for sucking pests like Jassid.

9 Table (1) Sudan cotton area during the last Six Seasons Season Variety Extra long Staple Barakat Medium Staple Acala 2010/ / / /2014 In Thousand Hectares / /2016* Total Share of ELS % Share of MS % 25 % 75% 35% 65% 25% 75% 4% 96% 0% 100% 0% 100% * projection Table (2) Sudan cotton production during the last five seasons season Variety Extra long Staple Barakat Medium Staple Acala Total 2011/ ,415 26,415 42, / / /2015 In Metric Tons 3,019 12,830 15, ,267 35, ,000 28, /2016 * 0 46,000 46,000 * Estimate

10 Table (3) Sudan cotton exports during the last five years Year Variety Extra long Staple Barakat Medium Staple Acala Total * Up to Oct ,500 10,532 29, ,103 5,066 7, In Metric Tons 2,549 12, ,767 2,549 31, ,479 2,263 4, * 0 1,928 1,928 Table (4). Fiber properties for commercial and some newly released varieties Variety Length (mm) Mic. Strength g/tex. Non-GE cotton Barakat Abdin Hamid GE cotton Hindi 1 (hybrid) Hindi 2 (hybrid) Seeni Seeni

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