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General Characteristics
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- Kapaskhalli
(cottonseed extraction/meal) is a byproduct of the cottonseed
industry.
- Cottonseed is a
by-product of the cotton plant, which is primarily grown for its fibre.
Although cotton has been grown for its fiber for several thousand
years, the use of cottonseed on a commercial scale is of relatively
recent origin.
- Cottonseed was a raw
agricultural product, which was once largely wasted. Now it is being
converted into food for people; feed for livestock; fertilizer and
mulch for plants; fiber for furniture padding; and cellulose for a
wide range of products from explosives to computer chip boards.
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Global Scenario
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- Annually around 15 -
16.5 million tons of cottonseed meal is produced globally. Globally,
the oil content of cottonseed is 18%, and the remaining portion is the
cottonseed meal.
- Most of the
production of cottonseed meal is consumed in the country of production
itself, limiting the global trade to just 5-6 lakh tons a year.
- China (1-1.2 lakh
tons) is the single largest exporter, while Europe (2 lakh tons),
South Korea (1-1.5 lakh tons) are the largest importers of cottonseed
meal.
- Cottonseed is the
second most commonly produced oilseed in the world just slightly ahead
of soy. However, in 2003-04 rapeseed/mustard has marginally overtaken
this seed.
- The global
production of cottonseed is around 35 million tons in the recent
years. The major producers of cotton are also the major producers of
cottonseed. China, USA, India, Pakistan, Uzbekistan and Brazil are the
major producers globally.
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Indian Scenario
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- Cottonseed is a
traditional oilseed of India. It is estimated that cottonseed
production will be around 33% of the cotton production in bales.
Around 80% of the seed is marketable surplus and arrives in the market
for being crushed to oil. The remaining is used as seed is fed to
cattle.
- India's cotton
output and along with it the cottonseed, meal and oil output varies
considerably from year to year in response to the vagaries of weather
and pest attacks.
- India's cottonseed
production in 2002-03 and 2003-04 is estimated at 36.3 and 43.4 lakh
tons respectively.
- India produces
around 2 million tons of cottonseed meal a year.
- The protein content
of the scientifically produced meal is 40-42% against 20-22% in the
traditionally processed meal. The cattlefeed manufacturers prefer this
meal as it contains lesser amount of gossypol, which if consumed in
larger amounts is a poison for cattle.
- However, in India
mainly undecorticated meal is largely produced. Several associations
are promoting the production of decorticated cake in India and the
production of this is expected to increase in the country.
- India used to be a
major exporter of cottonseed extraction around two decades ago.
However, the demand for other oil meals like soymeal, has lowered the
cottonseed demand globally. In addition, the low availability of
decorticated meal in India has also been a major reason for the fall
in exports.
- The major importers
of Indian cottonseed meal (undecorticated) used to be Thailand. India
in 2002-03 exported only 50 tons of decorticated cottonseed meal. In
2003-04, too there have been no significant exports. India does not
import cottonseed meal.
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Major Trading centres
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Akola, Parbhani, Nagpur, Yeotmal are the major trading
centers where cottonseed from the cotton procured by the Maharashtra State
Cooperative Cotton Growers Marketing Federation is auctioned off.
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Trade Scenario
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- Cottonseed is sold
through weekly auctions in Maharashtra. In other states, there is an
active cash market in the season. Cottonseed arrives in the market as
a by-product of ginning operation carried on cotton. It is sold off immediately.
- The industry is
largely un-organised, though several associations have been trying for
the upliftment of the industry and scientific processing practices.
- The prices of oil
and meal display good volatility, with it falling during the peak arrival
period (October - January. The prices of meal are dependent on the
prices of other commercially important oils like soymeal.
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Daily Variation in Undecorticated Cottonseed
Meal Prices at Mumbai (2003-04)
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Variation in %
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< 1
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1 - 3
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> 3
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In %
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76.28
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21.53
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2.19
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Markets Influencing Factors
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- Variations in cotton
production and its effect on cottonseed, meal and oil production in
the country.
- The arrival of
cottonseed for crushing from the ginning centres of the country.
- Comparative price
with other oilseeds, oil and meal in the domestic market.
- The demand from the
cattle-feed industry, which is the major consumer of cottonseed mea.
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