General Characteristics
|
- Kapas is unginned
cotton or the white fibrous substance covering the seed that is
obtained from the cotton plant.
|
|
Global Scenario
|
- The world cotton
area and production are estimated at around 30-31 million hectares and
20 million tons respectively.
- The biggest
cultivators of cotton are America, India, China, Egypt, Pakistan,
Sudan and Eastern Europe, with China, US and India being the three
largest producers of cotton.
- US has a
considerable share in world exports. India and China both fall short
of their domestic requirement and are net importers.
- Among the consumers
China leads the way being followed by India, Pakistan, US and Turkey.
|
|
World Cotton Supply And Distribution
|
|
2003/04
|
2004/05
|
2005/06
|
|
2003/04
|
2004/05
|
2005/06
|
|
Million
Tons
|
Million
Bales
|
Production
|
20.430
|
22.58
|
21.99
|
|
93.83
|
103.7
|
101.0
|
Consumption
|
21.145
|
21.51
|
21.86
|
|
97.12
|
98.8
|
100.4
|
Exports
|
7.129
|
6.58
|
6.93
|
|
32.74
|
30.2
|
31.8
|
Ending Stocks
|
7.996
|
9.07
|
9.20
|
|
36.73
|
41.6
|
42.3
|
|
|
Indian Scenario
|
- India with an annual
production of 15-16.5 million bales (1 bale=170 kg) is the World's
third largest cotton producer. India also has the largest area under
cotton. India produces around 11% of the world's cotton from 20% of
the area.
- The Ministry of
Agriculture estimates India's cotton production in 2003-04 at 123.9
lakh bales. However, other agencies peg the production at 140-160 lakh
bales.
- Despite having the
largest area under cotton in the world, India ranks third in world
output of cotton due to its abysmally low average yield of 300 kg
against a world average of 550 kg per hectare.
- Although cotton is
cultivated in almost all the states in the country, the 9 states of
Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Punjab, Haryana,
Rajasthan, Tamil Nadu and Karnataka account for more than 95% of the
area under and output.
- In India cotton is
sown during March to September and harvested during September to
April. The peak marketing season for the crop is during November to
March.
- Cotton is the most
important raw material for India's Rs. 1,50,000 crores textile industry,
which accounts for nearly 20% of the total national industrial
production and provides employment to over 15 million people.
- It also accounts for
more than 30% of exports, making it India's largest net foreign
exchange industry. India earns foreign exchange to the tune of $10-12
billion annually from exports of cotton yarn, thread, fabrics, apparel
and made-ups.
- Cotton accounts for
more than 75% of the total fibre that is converted into yarn by the
spinning mills in India and 58% of the total textile fabric materials
produced in the country.
|
|
Market Influencing Factors
|
- Only one-third of
the area is under irrigation, and this causes the cotton output to
vary considerably from year to year in response to the vagaries of weather
and pest attacks.
- More than 80 percent
of the cotton produced is sold out by March 31 every year and the
price starts firming up from April and starts easing only in September
when the new crop starts arriving in the market.
- The Government of India
fixes the Minimum Support Price for cotton and several Government
agencies like Cotton Corporation of India, Maharashtra State
Co-operative Cotton Growers' Marketing Federation procure cotton at
this price. This sets the trend for the price initially. But the
industry involves large number of players and the market forces
determine the price soon.
- The imports of
cotton into the country and exports from the country.
|
|